§ 1560.Foreclosure of Licensed Medical Marijuana Business - Continuation of Operations
Chapter 30: Receivers · Last amended November 1, 2019 · Last verified August 3, 2026
In one sentenceLets a secured party or receiver keep operating a foreclosed, insolvent, or bankrupt licensed medical marijuana dispensary, grower, or processor by proving to state regulators that they meet the licensing requirements for that business, and directs those regulators to write rules on continued operation after death, insolvency, or receivership.
A.In the event that a licensed medical marijuana dispensary, commercial grower or processor is foreclosed, is the subject of an order appointing a receiver, becomes insolvent, bankrupt or otherwise ceases operations, a secured party or receiver may continue operations at the dispensary, grower or processor upon submitting to the Oklahoma Medical Marijuana Authority, State Department of Health, proof that the secured party or receiver, or if the secured party or receiver is a business entity, any individual who has a financial interest in the secured party or receiver, meets the requirements and restrictions set forth in:
1.For licensed medical marijuana dispensaries, Section 421 of Title 63 of the Oklahoma Statutes;
2.For licensed commercial medical marijuana growers, Section 422 of Title 63 of the Oklahoma Statutes; or
3.For licensed medical marijuana processors, Section 423 of Title 63 of the Oklahoma Statutes. The Authority may prescribe the form and manner of submitting proof under this subsection. Neither the state nor agency of this state shall require an additional fee from the secured party or receiver, other than payment of annual fees which may become due during the operation by the secured party or receiver.
B.Subject to the requirements of subsection A of this section, the Oklahoma Medical Marijuana Authority, State Department of Health, shall promulgate rules for the manner and conditions under which:
1.Marijuana items left by a deceased, insolvent or bankrupt person or licensee, or subject to a security interest or a court order appointing a receiver, may be foreclosed, sold under execution or otherwise disposed whether by foreclosure or by sale as a going concern;
2.The business of a licensee who is deceased, insolvent, bankrupt, or the subject of an order appointing receiver or a foreclosure by a secured party, may be operated for a reasonable period following the death, insolvency, appointment of a receiver or bankruptcy; and
3.A secured party or court-appointed receiver may continue to operate a business for which a license has been issued under Section 421, 422 or 423 of Title 63 of the Oklahoma Statutes for a reasonable period after default on the indebtedness by the debtor or after the appointment of the receiver.
Amendment History
Added by Laws 2019, c. 435, s. 1, eff. 11/1/2019.
Plain-English Summary
Section 1560 answers a practical question: what happens to a licensed medical marijuana business when it's foreclosed, lands in receivership, goes insolvent or bankrupt, or otherwise stops operating? Rather than letting the license lapse automatically, the statute lets a secured party or receiver keep the dispensary, grower, or processor running, as long as they submit proof to the Oklahoma Medical Marijuana Authority that they -- or, for a business entity, anyone with a financial interest in it -- meet the licensing requirements set out in Title 63 for that type of license. The state can't charge an extra fee for that proof beyond the annual fees that would otherwise come due.
The section also directs the Authority to write rules covering the broader situation: how marijuana items left by a deceased, insolvent, or bankrupt licensee, or subject to a security interest or receivership order, may be sold or otherwise disposed of, and how long a business may keep operating following the licensee's death, insolvency, bankruptcy, or a receiver's appointment or a secured party's foreclosure.
Frequently Asked Questions
What happens to a medical marijuana business's license when it's foreclosed?
A secured party or receiver may continue operations by submitting proof to the Oklahoma Medical Marijuana Authority that they meet the licensing requirements under Title 63 for a dispensary, grower, or processor.
Does a receiver need a new license to keep the business running?
The statute doesn't require a new license -- it requires the secured party or receiver to submit proof they meet the existing licensing requirements for that type of business.
Does the state charge extra fees for a receiver operating the business?
No. Neither the state nor any state agency may require an additional fee beyond the annual fees that may already come due during the operation.
Can a deceased licensee's marijuana business keep operating?
The statute directs the Oklahoma Medical Marijuana Authority to write rules allowing the business of a deceased, insolvent, or bankrupt licensee to operate for a reasonable period following the death, insolvency, or bankruptcy.
Source & verification. Section text is reproduced verbatim from
Title 12 of the Oklahoma Statutes, enacted by the Oklahoma Legislature.
Last verified August 3, 2026.
· Official source
Also known as:medical marijuana business receivership oklahoma12 O.S. § 1560dispensary foreclosure continue operating oklahomaOMMA rules secured party receiver license