{"data":{"id":"us-ky/krs-190a.070","jurisdiction":"us-ky","citation":"KRS 190A.070","heading":"Conditions applicable to proposed sale of business assets, stock transfer,","body":"or other transaction that will result in a change of ownership of a new\nrecreational vehicle dealer except in cases of death, incapacity, or retirement of\ndesignated principal of dealer -- Conditions applicable to those cases.\n(1) All of the following conditions shall apply to a proposed sale of the business assets,\ntransfer of stock, or other transaction that will result in a change of ownership of a\nnew recreational vehicle  dealer, except a transaction described in subsection (2) of\nthis section:\n(a) The dealer shall provide written notice to the manufacturer at least ninety (90)\ndays prior to the proposed closing of the transaction;\n(b) If the dealer is not in breach of the  dealer agreement or in violation of the\nprovisions of this chapter at the time the dealer provides the notice described\nin paragraph (a) of this subsection, the manufacturer shall not object to the\nproposed transaction, unless:\n1. The prospective transferee was previously a party to a dealer agreement\nwith the manufacturer that the manufacturer terminated;\n2. In the proceeding ten (10) years, the prospective transferee was\nconvicted of a felony crime or any crime of fraud, deceit, or moral\nturpitude;\n3. The prospective transferee does not have an application for a\nrecreational vehicle dealer license pending with the Motor Vehicle\nCommission or a tentative dealer agreement with a recreational vehicle\nmanufacturer to conduct business as a dealer in this state  relative to the\nsale or transfer of the dealership;\n4. The prospective transferee does not have an active line of credit\nsufficient to purchase recreational vehicles from the manufacturer\naccording to the terms of the dealer agreement; or\n5. In the preceding ten (10) years, the prospective transferee was bankrupt\nor insolvent, made a general assignment for the benefit of creditors, or a\nreceiver, trustee, or conservator was appointed to take possession of the\nbusiness or property of the prospective transferee;\n(c) If the manufacturer objects to the proposed transaction, the manufacturer shall\ngive written notice of its objection, including the reasons for the objection, to\nthe dealer within thirty (30) days after receiving the notice described in\nparagraph (a) of this subsection. If the manufacturer does not give notice of an\nobjection within the thirty (30) day time period, the proposed transaction shall\nbe considered approved by the manufacturer; and\n(d) For purposes of paragraph (c) of this subsection, th e manufacturer has the\nburden of demonstrating why the manufacturer objects to the proposed\ntransaction.\n(2) All of the following conditions apply concerning the death, incapacity, or retirement\nof the designated principal of a dealer:\n(a) A dealer agreement shall include a designated principal of the dealer. A dealer\nagreement may identify a family member as the successor to the principal in\nthe event of the death, incapacity, or retirement of the designated principal or\ninclude a succession plan of the de aler. A dealer may at any time change a\ndesignation or succession plan by providing written notice to the\nmanufacturer;\n(b) The manufacturer shall not prevent or refuse to honor the succession to a\ndealership by a family member of the deceased, incapacitat ed, or retired\ndesignated principal of that dealer unless the manufacturer previously\nprovided written notice to the dealer of any objections to the succession plan\nof the dealer within thirty (30) days after receiving the succession plan of the\ndealer or any modification of the succession plan of the dealer;\n(c) Except as provided in paragraph (e) of this subsection, unless the dealer is in\nbreach of the dealer agreement, a manufacturer shall not object to the\nsuccession to a dealership by a family member of the deceased, incapacitated,\nor retired designated principal, unless:\n1. In the preceding ten (10) years, the successor was convicted of a felony\ncrime or any crime of fraud, deceit, or moral turpitude;\n2. In the preceding ten (10) years, the successor was bankrupt, insolvent, or\nmade an assignment for the benefit of creditors;\n3. The successor was previously a party to a dealer agreement with the\nmanufacturer that the manufacturer terminated for a breach of a dealer\nagreement;\n4. The successor does not have an active line of credit sufficient to\npurchase recreational vehicles from the manufacturer according to the\nterms of the dealer agreement; or\n5. The successor does not have an application for a recreational vehicle\ndealer license pending before the M otor Vehicle Commission or a\ntentative dealer agreement with a recreational vehicle manufacturer to\nconduct business as a dealer in this state;\n(d) The manufacturer has the burden of proof regarding any objection to the\nsuccession to a dealership by a fami ly member of the deceased, incapacitated,\nor retired designated principal; and\n(e) The consent of the manufacturer shall be required for the succession to a\ndealership by a family member of the deceased, incapacitated, or retired\ndesignated principal if th e succession involves a relocation of the business or\nan alteration of the terms and conditions of the dealer agreement.","path":["KRS Chapter 190A"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43554","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:51:45Z","sha256":"54c66c7aa660019c4cebc3b6ec5d01b0497607369bdf54a87adc523eabb04d28","source_id":"us-ky","stale":false,"prev":"us-ky/krs-190a.060","next":"us-ky/krs-190a.080"},"notice":"GroundRules: Original legal text. Not legal advice."}