KRS 324A.152: Requirement of registration -- Application requirements -- Criminal

background checks -- Annual renewal of registration -- Administrative

regulations.

(1) A person shall not act or offer to act as an appraisal management company or

perform appraisal management services within the Commonwealth unless

registered by the board.

(2) To be registered by the board, a person shall make written application to the board,

submit to a criminal background check as provided in subsection (3) of this se ction,

pay a filing fee established by the board, and pay the fee required to be included in

the appraisal management company recovery fund created in KRS 324A.155. The

written application shall include the following information:

(a) The name, street addre ss, and telephone contact information of the person

seeking registration;

(b) 1. If the registrant is a domestic organization, the designation of an agent

for service of process; or

2. If the registrant is a foreign organization, documentation that the for eign

organization is authorized to transact business in the Commonwealth

and has appointed an agent for service of process by submitting a copy

of:

a. The registrant's filing with the Secretary of State appointing an

agent for service of process; and

b. A certificate of authority issued by the Secretary of State.

A foreign organization's failure to comply with this subparagraph may

result in rejection of the application;

(c) The name, residential street address, and contact information of any person

who owns ten percent (10%) or more of the appraisal management company

for which registration is being requested;

(d) The name, residential street address, and contact information of a controlling

person or managing principal;

(e) A certification that the registrant:

1. Has a system and process in place to verify that any person being added

to the appraiser panel of the appraisal management company, or who

may be used by the appraisal management company to otherwise

perform appraisals, holds a license in good s tanding in this state under

this chapter;

2. Has a system and process in place to review the work of all appraisers

that are performing appraisal services for the appraisal management

company on a periodic basis to ensure that all appraisal reportsmeet the

minimum reporting requirements in accordance with themost recent

edition of the USPAP; and

3. Maintains a detailed record of each request for appraisal services that it

receives and the appraiser that performs the appraisal services for the

appraisal management company;

(f) A certification from the registrant and any partner, member, manager, officer,

director, managing principal, controlling person, or person occupying a

similar status or performing similar functions, or person directly or indirectly

controlling the registrant that:

1. The application for registration when filed or after filing contains no

statement that, in light of the circumstances under which it was made, is

false or misleading with respect to a material fact;

2. The person certifying has not violated or failed to comply with KRS

324A.154, 324A.156, or 324A.158;

3. The person certifying and each person who owns ten percent (10%) or

more of the registrant has not pled guilty or nolo contendere to or been

found guilty of:

a. A felony; or

b. Within the past ten (10) years, a misdemeanor involving mortgage

lending or real property appraising, or an offense involving breach

of trust or fraudulent or dishonest dealing;

4. The person certifying is not permanently or temporarily enjoined by a

court of competent jurisdiction from engaging in or continuing any

conduct or practice involving appraisal management services or

operating an appraisal management company;

5. The person certifying is not the subject of an order of the board or any

other state's appraisal management company regulatory agency denying,

suspending, or revoking the person's privilege to operate as an appraisal

management company;

6. The person certifying has not acted as an appraisal management

company while not properly registered by the board; and

7. The appraisal management company is not owned, in whole or in part,

directly or indirectly, by any person who has had an appraiser license or

certificate refused, denied, canceled, surrendered in lieu of revocation,

or revoked in an y state for a cause other than expiration, as determined

by the relevant state appraiser regulatory program; and

(g) Any other information required by the board.

(3) The board shall require a national and state criminal background check on the

person certifying under subsection (2)(f) of this section and each person who owns

ten percent (10%) or more of the registrant under the following requirements:

(a) The person certifying and each person who owns ten percent (10%) or more

of the registrant shall provid e his or her fingerprints to the Department of

Kentucky State Police for submission to the Federal Bureau of Investigation

after a state criminal background check is conducted;

(b) The results of the national and state criminal background check shall be se nt

to the board; and

(c) Any fee charged by the Department of Kentucky State Police and the Federal

Bureau of Investigation shall be an amount no greater than the actual cost of

processing the request and conducting the check.

(4) The board shall issue a c ertificate of registration to a registrant authorizing the

registrant to act or offer to act as an appraisal management company in this state

upon:

(a) Receipt of a properly completed application;

(b) Payment of the required filing fee;

(c) Payment of the fee required to be included in the appraisal management

company recovery fund; and

(d) A determination by the board that:

1. The registrant has not had a previous registration suspended or revoked;

and

2. The activities of the applicant shal l be directed and conducted by

persons who:

a. Have not had a previous registration suspended or revoked;

b. Have not pled guilty or nolo contendere to or been found guilty of

a felony; or

c. Within the past ten (10) years have not pled guilty, pled nolo

contendere to, or been found guilty of a misdemeanor involving

mortgage lending or real property appraising or an offense

involving a breach of trust or fraudulent or dishonest dealing.

(5) (a) If the board finds that there is substantial reason to deny the application for

registration, the board shall notify the registrant that the application has been

denied and shall afford the registrant an opportunity for a hearing before the

board to show cause why the registration should not be denied.

(b) All proceedings concerning the denial of a certificate of registration shall be

conducted in accordance with KRS Chapter 13B.

(c) The acceptance by the board of an application for registration does not

constitute the approval of its contents or waive the authority of the board to

take disciplinary action under KRS 324A.162.

(6) (a) Registrations issued under this section shall be renewed annually.

(b) Renewal shall occur on October 31 of each year.

(c) If the initial registration occurs less than six (6) months before October 31, the

renewal shall not be required until October 31 of the following year, and shall

then be renewed on October 31 of each year thereafter.

(7) (a) Failure to renew a registration in a timely manner shall result in a loss of

authority to operate.

(b) A request to reinstate a certificate of registration shall be accompanied by

payment of a penalty of fifty dollars ($50) for each month of delinquency, up

to six (6) months after expiration.

(c) After six (6) months' delinquency, a new application f or registration shall be

required.

(8) The board shall promulgate administrative regulations in accordance with KRS

Chapter 13A to establish standards for the operation of appraisal management

companies and for the implementation and enforcement of KRS 324 A.150 to

324A.164.