{"data":{"id":"us-ky/krs-138.330","jurisdiction":"us-ky","citation":"KRS 138.330","heading":"Dealer's and transporter's financial instrument.","body":"(1) (a) Every dealer or transporter required to be licensed under KRS 138.310 shall\nfile with the department a financial instrument in an amount not to exceed\nthree (3) months' estimated liability as computed by the department or five\nthousand dollars ($5,000) whi chever is greater, or in the case of a new\nlicensee in the minimum amount of five thousand dollars ($5,000) until such\ntime as an estimated three (3) months' liability can be established, provided\nthat the maximum amount of any financial instrument may be reduced to an\namount sufficient in the opinion of the department, considering the financial\nrating and reputation of the company, to insure payment to the department of\nthe amount of tax, penalties and interest for which the dealer or transporter\nmay become liable.\n(b) The financial instrument shall be on a form and with a surety approved by the\ndepartment.\n(c) The dealer or transporter shall be the principal obligor and the state the\nobligee.\n(d) The financial instrument shall be conditioned upon the promp t filing of true\nreports by the dealer and transporter and the payment by the dealer to the State\nTreasurer of all gasoline and special fuel excise taxes imposed by the state,\ntogether with all penalties and interest thereon, and generally upon faithful\ncompliance with the provisions of KRS 138.210 to 138.340.\n(2) If liability upon the financial instrument is discharged or reduced, whether by\njudgment rendered, payment made, or otherwise, or if in the opinion of the\ndepartment any surety on the financial in strument has become unsatisfactory or\nunacceptable, the department may require the licensee to file a new financial\ninstrument with satisfactory sureties in the same amount, failing which the\ndepartment shall cancel the license of the licensee in accordance with the provisions\nof KRS 138.340. If a new financial instrument is furnished as provided above, the\ndepartment shall cancel and surrender the financial instrument for which the new\nfinancial instrument is substituted.\n(3) If upon hearing, of which the licensee shall be given five (5) days' notice in writing,\nthe department decides that the amount of the existing financial instrument is\ninsufficient to insure payment to the state of the amount of tax, penalties, and\ninterest for which the licensee is or may become liable, the licensee shall, upon the\nwritten demand of the department, file an additional financial instrument in the\nsame manner and form with a surety thereon approved by the department, in any\namount determined by the department to be necessary, failing which the department\nshall cancel the license of the licensee in accordance with the provisions of KRS\n138.340.\n(4) Any surety on a financial instrument furnished as required by this section shall be\nreleased from all liability to the state acc ruing on the financial instrument after the\nexpiration of sixty (60) days from the date upon which the surety has lodged with\nthe department a written request to be released, but this request shall not operate to\nrelease the surety from any liability already accrued or which shall accrue before the\nexpiration of the sixty (60) day period. The department shall promptly, upon receipt\nof a request, notify the licensee who furnished the financial instrument, and unless\nthe licensee, before the expiration of the  sixty (60) day period, files with the\ndepartment a new financial instrument with a surety satisfactory to the department\nin the amount and form prescribed in this section, the department shall cancel the\nlicense of the licensee in accordance with the prov isions of KRS 138.340. If an\napproved new financial instrument is filed, the department shall cancel and\nsurrender the financial instrument for which the new financial instrument is\nsubstituted.","path":["KRS Chapter 138"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44481","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:29Z","sha256":"6804395d5df7d2b5b3d80a7ba882c65d98548f4108ba61234c56d788552b2a7e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-138.321","next":"us-ky/krs-138.340"},"notice":"GroundRules: Original legal text. Not legal advice."}