This doc isn’t authorized recommendation. It’s meant to focus on operational adjustments for any switch of possession or management.
Listed here are some feedback (as posted on Linked In) from
Jonathan Wachs
“transfers of possession or management” doc: Steering offered by the Maryland Hashish Administration (MCA) to help hashish licensees in complying with state legal guidelines and laws governing the hashish trade.
A secured creditor could also be authorised by the Administration to acquire a safety curiosity within the proceeds from an Administration-approved sale of a grower, processor or dispensary license. The secured creditor could choose an eligible receiver to supervise the orderly switch of the license if the licensee (1) is the topic of an order requiring the appointment of a receiver; (2) turns into bancrupt; or (3) in any other case materials breaches or defects on its materials obligations secured by the related license. Each the secured creditor and the recipient should submit an software within the kind specified by the Administration and, if authorised, an in depth plan for the disposition of the license.
COMAR Part 14.17.17.01(B)(2) nonetheless limits the definition of a secured creditor to “a lending establishment outlined within the Monetary Establishments Article, ยง 1-101, Annotated Code of Maryland, which has been authorised by the Administration to acquire a safety curiosity within the proceeds of an Administration-approved sale of a grower, processor or dispensary license.”
The revised emergency laws don’t deal with a number of necessary points concerning the rights of collectors and Maryland hashish companies, reminiscent of:
(1) How can a lender that’s not a bona fide “lending establishment” receive an enforceable safety curiosity within the unlicensed property of a Maryland hashish firm?
(2) Are the events required to hunt MCA approval of their secured creditor standing earlier than signing a safety settlement or solely after searching for to switch management or title to the hashish licence?
(3) For events searching for recognition as a “secured creditor” beneath the aforementioned COMAR sections, what’s the MCA's software kind and course of?
These unresolved questions could discourage lenders from supporting new Maryland hashish corporations searching for funding. New market entrants should show ample capitalization inside six months of receiving a conditional license.