(1) A license may be transferred to another qualified person only pursuant to means legally authorized for the transfer of personal property in Montana, such as:

(a) the person is a purchaser upon a bona fide sale;

(b) the person is the personal representative of the estate of a deceased licensee;

(c) the person has a security interest in a license being foreclosed pursuant to ARM 42.12.205;

(d) the person is gifted the license and the donor completely transfers ownership interest, as provided in Title 70, chapter 3, part 1, MCA; or

(e) the person is appointed receiver under the license receivership.

(2) A potential buyer of a liquor license or a potential buyer of 10% or more of stock in a business operated under the license is required to submit an application for transfer of a liquor license or transfer of shares of stock pursuant to ARM 42.12.101. The applicant for ownership of either the business or its stock must be notified in writing by the department that either temporary operating authority or conditional approval has been granted or such a transfer of the license is approved by the department before the buyer may pay to or in any way transfer any money or other valuable consideration to the seller in payment for the business operated under the license or stock. If money is paid to the seller on the granting of temporary operating authority or conditional approval and the application is later not approved, the money, with the exception of a reasonable amount considered earnest money, must be returned.

(3) The seller and the buyer may exchange any portion of the purchase price so long as the amount is placed in escrow if temporary authority or conditional approval has not been issued.

(4) A transfer of ownership interest or money changing hands between currently qualified and disclosed owners is not prohibited prior to notification to and approval by the department.

(5) The department may revoke a license for a violation of the requirements in (2) .