Bulk Sale Escrows

Bulk Sale escrows can be defined as an escrow agreement placed on the sale of inventory, business assets, or a company. It is different from the sale of real estate a business is defined as personal property. The escrow is designed to protect the assets of unsecured creditors. It is designed to eliminate the possibility of the seller using the money from the sale on other things besides taxes owed or debts to be paid to creditors.  The statutes governing bulk sales require a notice to be recorded and published which gives the creditors of the seller an opportunity to file claims with the escrow holder for amounts due them for providing goods and/or services to the business. When a liquor Licenses is part of the sale of the business escrow cannot close or release funds until the transfer of the liquor license by A.B.C.(Alcohol Beverage Control)