KRS 286.8-060: Surety bonds required -- Uses of bonds -- New or supplemental bonds.

(1) Except as otherwise provided in this section, each mortgage loan company,

mortgage loan broker, and mortgage loan originator shall post or be covered by a

surety bond for the entire licensure or registration period in an amount prescribed by

the commission er, but in no event shall the bond be less than two hundred fifty

thousand dollars ($250,000) for mortgage loan companies and fifty thousand dollars

($50,000) for mortgage loan brokers.

(2) Every bond shall provide for suit thereon by any person who has a cause of action

under this subtitle. The total liability of the surety, to all persons, cumulative or

otherwise, shall not exceed the amount specified in the bond.

(3) The bond shall be in a form prescribed by the commissioner and shall be made

payable to the commissioner. The terms of the bond shall provide that it may not be

terminated without thirty (30) days prior written notice to the commissioner.

(4) Every bond shall be available for the recovery of expenses, fines, restitution, and

fees levied by th e commissioner under this subtitle, and for losses or damages that

have been incurred by any borrower or consumer as a result of the registrant's or

licensee's failure to comply with the requirements of this subtitle.

(5) Every bond shall provide that no s uit shall be maintained to enforce any liability on

the bond unless brought within three (3) years after the act upon which it is based.

(6) If the commissioner or the commissioner's representative shall at any time

reasonably determine that the bond or se curities aforesaid are insecure, deficient in

amount, or exhausted in whole or part, he may by written order require the filing of

a new or supplemental bond or the deposit of new or additional securities in order to

secure compliance with this subtitle, the order to be complied with within thirty (30)

days following service thereof upon the registrant or licensee.