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Does the law prohibit pledging the transfer of a license as security for a loan or as security for the fulfillment of any agreement?

Yes. The law prohibits a licensee from pledging the license as security for a loan or as security for the fulfillment of any agreement. In their transfer application both transferor and transferee must state under oath that the transfer is not being made (a) to satisfy the payment of a loan or to fulfill an agreement entered into more than 90 days before the transfer application is filed, (b) to gain or establish a preference to or for any creditor of the transferor, except as permitted by 3ection 24074, (c) to defraud or injure any creditor of the transferor. (Section 24076)