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HomeFinancial CodeDiv. 6Ch. 6Art. 3§ 17638 Commissioner Liquidation Powers

§ 17638 Commissioner Liquidation Powers

Financial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 17638 Commissioner Liquidation Powers

This law lets the state regulator step in to settle a licensee's affairs when they are being shut down, handling money, paying claims, and selling property.

Key Takeaways

  • •The regulator can collect all money owed to the licensee.
  • •The regulator can approve and pay legitimate claims.
  • •The regulator can start legal actions to enforce the liquidation.
  • •The regulator can settle doubtful debts and sell property after a court order.

Example

A bar that holds a liquor license goes out of business, and the state regulator takes over to collect any money owed and sell the bar's equipment.

The regulator can gather all debts the bar owes, pay any valid claims, and sell the bar's assets after a court order, ensuring the closure is fair and orderly.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 17638 Commissioner Liquidation Powers

In liquidating the affairs of a licensee the commissioner may: (a) Collect all money due to, and claims of, the licensee and give receipt therefor. (b) Approve and pay all just and equitable claims. (c) Commence and prosecute all actions and proceedings necessary to enforce liquidation. (d) Compound bad or doubtful debts or claims, borrow money, sell, convey, or transfer real or personal property, on order of the superior court of the county in this State in which the principal office of the licensee is located. The order shall be made after hearing and on such notice as the court prescribes. (Added by Stats. 1963, Ch. 2130.)

Last verified: January 11, 2026

Key Terms

liquidatinglicenseecommissionercourt orderhearing

Related Statutes

  • § 17635 Conservator To Liquidator Conversion
  • § 17636 Receiver Appointment Liquidation
  • § 17640 Commissioner Authority Over Licensee Assets
  • § 17642 Liquidation Inventory Requirements
  • § 17643 Liquidation Claim Procedures

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Financial Code. Section 17638.
View Official Source