KRS 514.070: Theft by failure to make required disposition of property.

(1) A person is guilty of theft by failure to make required disposition of property

received when he or she:

(a) 1. Obtains property upon agreement or subject to a known legal obl igation

to make specified payment, with no option to purchase, or other

disposition whether from such property or its proceeds or from his or her

own property to be reserved in equivalent amount; and

2. Intentionally deals with the property as his or her o wn and fails to make

the required payment or disposition; or

(b) 1. Rents or leases personal property having a fair market value of one

hundred dollars ($100) or more under a written agreement with no

option to purchase;

2. Fails to return the personal pro perty within five (5) days after receiving

notice sent by the merchant or lessor demanding return by certified mail

at the address on the written agreement; and

3. Intentionally possesses or conceals the personal property, or otherwise

withholds the location, if known, of the personal property.

(2) (a) It shall not be a defense to subsection (1)(b) of this section that the person

returned the personal property after the expiration of the time period specified

in subsection (1)(b)2. of this section.

(b) If the personal property is returned, any monetary loss resulting from the

deprivation of the right of the owner to use the personal property for future

rentals may only be pursued as a civil matter under the terms of the rental

agreement.

(c) This section shall not be construed to prevent a person from being prosecuted

under any other provision of the Kentucky Penal Code for the failure to return

the personal property as provided in subsection (1)(b) of this section.

(3) The provisions of subsection (1) of this section apply notwithstanding that it may be

impossible to identify particular property as belonging to the victim at the time of

the actor's failure to make the required payment or disposition.

(4) An officer or employee of the government or of a financial institution is presumed:

(a) To know any legal obligation relevant to his or her criminal liability under

this section; and

(b) To have dealt with the property as his or her own when:

1. He or she fails to account or pay upon lawful demand; or

2. An audit reveals a shortage or falsification of accounts.

(5) Theft by failure to make required disposition of property received is a Class B

misdemeanor unless, for a violation of subsection (1)(a) of this section:

(a) The value of the property is five hun dred dollars ($500) or more but less than

one thousand dollars ($1,000), in which case it is a Class A misdemeanor;

(b) The value of the property is one thousand dollars ($1,000) or more but less

than ten thousand dollars ($10,000), in which case it is a Class D felony;

(c) A person has three (3) or more convictions under paragraph (a) of this

subsection within the last five (5) years, in which case it is a Class D felony.

The five (5) year period shall be measured from the dates on which the

offenses occurred for which the judgments of conviction were entered; or

(d) The value of the property is ten thousand dollars ($10,000) or more, in which

case it is a Class C felony.

(6) A person shall not be convicted of theft by failure to make required disposition o f

property received when he or she has also been convicted of a violation of KRS

522.050 arising out of the same incident.

(7) If any person commits two (2) or more separate offenses of theft by failure to make

a required disposition of property received w ithin ninety (90) days, the offenses

may be combined and treated as a single offense, and the value of the property in

each offense may be aggregated for the purpose of determining the appropriate

charge.