KRS 190A.070: Conditions applicable to proposed sale of business assets, stock transfer,

or other transaction that will result in a change of ownership of a new

recreational vehicle dealer except in cases of death, incapacity, or retirement of

designated principal of dealer -- Conditions applicable to those cases.

(1) All of the following conditions shall apply to a proposed sale of the business assets,

transfer of stock, or other transaction that will result in a change of ownership of a

new recreational vehicle dealer, except a transaction described in subsection (2) of

this section:

(a) The dealer shall provide written notice to the manufacturer at least ninety (90)

days prior to the proposed closing of the transaction;

(b) If the dealer is not in breach of the dealer agreement or in violation of the

provisions of this chapter at the time the dealer provides the notice described

in paragraph (a) of this subsection, the manufacturer shall not object to the

proposed transaction, unless:

1. The prospective transferee was previously a party to a dealer agreement

with the manufacturer that the manufacturer terminated;

2. In the proceeding ten (10) years, the prospective transferee was

convicted of a felony crime or any crime of fraud, deceit, or moral

turpitude;

3. The prospective transferee does not have an application for a

recreational vehicle dealer license pending with the Motor Vehicle

Commission or a tentative dealer agreement with a recreational vehicle

manufacturer to conduct business as a dealer in this state relative to the

sale or transfer of the dealership;

4. The prospective transferee does not have an active line of credit

sufficient to purchase recreational vehicles from the manufacturer

according to the terms of the dealer agreement; or

5. In the preceding ten (10) years, the prospective transferee was bankrupt

or insolvent, made a general assignment for the benefit of creditors, or a

receiver, trustee, or conservator was appointed to take possession of the

business or property of the prospective transferee;

(c) If the manufacturer objects to the proposed transaction, the manufacturer shall

give written notice of its objection, including the reasons for the objection, to

the dealer within thirty (30) days after receiving the notice described in

paragraph (a) of this subsection. If the manufacturer does not give notice of an

objection within the thirty (30) day time period, the proposed transaction shall

be considered approved by the manufacturer; and

(d) For purposes of paragraph (c) of this subsection, th e manufacturer has the

burden of demonstrating why the manufacturer objects to the proposed

transaction.

(2) All of the following conditions apply concerning the death, incapacity, or retirement

of the designated principal of a dealer:

(a) A dealer agreement shall include a designated principal of the dealer. A dealer

agreement may identify a family member as the successor to the principal in

the event of the death, incapacity, or retirement of the designated principal or

include a succession plan of the de aler. A dealer may at any time change a

designation or succession plan by providing written notice to the

manufacturer;

(b) The manufacturer shall not prevent or refuse to honor the succession to a

dealership by a family member of the deceased, incapacitat ed, or retired

designated principal of that dealer unless the manufacturer previously

provided written notice to the dealer of any objections to the succession plan

of the dealer within thirty (30) days after receiving the succession plan of the

dealer or any modification of the succession plan of the dealer;

(c) Except as provided in paragraph (e) of this subsection, unless the dealer is in

breach of the dealer agreement, a manufacturer shall not object to the

succession to a dealership by a family member of the deceased, incapacitated,

or retired designated principal, unless:

1. In the preceding ten (10) years, the successor was convicted of a felony

crime or any crime of fraud, deceit, or moral turpitude;

2. In the preceding ten (10) years, the successor was bankrupt, insolvent, or

made an assignment for the benefit of creditors;

3. The successor was previously a party to a dealer agreement with the

manufacturer that the manufacturer terminated for a breach of a dealer

agreement;

4. The successor does not have an active line of credit sufficient to

purchase recreational vehicles from the manufacturer according to the

terms of the dealer agreement; or

5. The successor does not have an application for a recreational vehicle

dealer license pending before the M otor Vehicle Commission or a

tentative dealer agreement with a recreational vehicle manufacturer to

conduct business as a dealer in this state;

(d) The manufacturer has the burden of proof regarding any objection to the

succession to a dealership by a fami ly member of the deceased, incapacitated,

or retired designated principal; and

(e) The consent of the manufacturer shall be required for the succession to a

dealership by a family member of the deceased, incapacitated, or retired

designated principal if th e succession involves a relocation of the business or

an alteration of the terms and conditions of the dealer agreement.