LexisNexis ( May 3, 2018, 10:41 AM EDT) -- Can a liquor license be the subject of an enforceable security interest under Article 9 of the UCC? A recent bankruptcy court decision concludes that a California statute (Business & Professions Code § 24076) prohibits the use of a liquor license as collateral for a loan. In re Delano Retail Partners, LLC, 2017 Bankr. LEXIS 2397, 93 UCC Rep. 2d 472 (E.D. Calif. 8/14/17). The statute states: "No licensee shall enter into an agreement wherein he pledges the transfer of his license as security for a loan or as security for the fulfillment of any agreement." The trustee in bankruptcy sold the debtor's liquor licenses to a court-approved third party for $37,661....