Vermont § 209 - Bankruptcy, death, and revocation

§ 209. Bankruptcy, death, and revocation

• (a) If a licensee or permittee becomes bankrupt or dies before the expiration of its license
  or permit, the licensee’s or permittee’s trustee, executor, or administrator may sell
  the alcohol that came into its possession to a holder of a license or permit of the
  same class. (b) If a license or permit is revoked under the provisions of this title, after the revocation,
  the licensee or permittee may sell the alcohol in its possession at the time of the
  revocation to a holder of a license or permit of the same class. (c)(1) All sales under this section shall be made within 30 days after the bankruptcy, death,
  or revocation and shall include immediate and actual delivery of the alcohol. (2) Notwithstanding subdivision (1) of this subsection, upon application of the executor
  or administrator of a deceased licensee or permittee, the Board may transfer the license
  or permit of the decedent to the executor or administrator without payment of any
  additional fee, and the executor or administrator may then carry on the business of
  the decedent under the license or permit until its expiration. (d)(1) The holder of a manufacturer’s or rectifier’s license may pledge or mortgage alcoholic
  beverages manufactured or rectified by the licensee, and the pledgee or mortgagee
  may retain possession of the alcoholic beverages and, if the licensee defaults, may
  sell and dispose of the alcoholic beverages to persons to whom the licensee might
  lawfully sell the alcoholic beverages, subject to the same restrictions and regulations
  as the licensee and to any further restriction or rules prescribed by the Board of
  Liquor and Lottery with respect to advance notice to it of the sale and determination
  by it of the persons entitled to buy and the manner of the sale. (2) Any sale pursuant to a default on a pledge or mortgage shall not be at public auction
  as required with respect to similar sales of other property but shall be upon not
  less than 10 days’ notice to the pledgor or mortgagor and for the highest amount that
  may be offered pursuant to the rules of the Board of Liquor and Lottery. (Amended 2001, No. 143 (Adj. Sess.), § 14, eff. June 21, 2002; 2017, No. 83, § 28; 2018, No. 1 (Sp. Sess.), § 31.)