or to an entity holding a security interest in an item as collateral pursuant to Article 9 of the Uniform Commercial Code (U.C.C. § 9–102(a)(73)), and, before the transfer, or on the first inspection or examination by the Attorney General of the records of the licensee after the transfer, the licensee is found to be operating the business in violation of this chapter, the Attorney General— (1) shall notify the transferee of the violation by the transferor