(1) A transfer of a license resulting from a foreclosure on a security interest requires an application to transfer the license to the secured party, if the secured party intends to operate the license, pursuant to ARM 42.12.101. This transfer is subject to the department's approval of the application pursuant to 16-4-402 , MCA, and this rule.
(2) A transfer of a license resulting from a foreclosure on a security interest requires the filing of documents evidencing the foreclosure if the secured party does not intend to operate or does not meet the requirements to hold the license pursuant to 16-4-401 and 16-4-801 , MCA. The documents must include either the defaulting party's written acknowledgment of default, evidence that a nonjudicial sale by the secured party has been made pursuant to the Uniform Commercial Code, or a court order foreclosing the defaulting party's interests in the license. Based on the foreclosure documents, the transfer may be approved pursuant to ARM 42.12.205. A foreclosing secured party may retain ownership of the transferred license in nonuse status for a period of no more than 180 days, and may, upon showing of good cause, receive one extension of 180 days. If the license has not transferred to a qualified purchaser within the time allowed, the license will be revoked.