{"data":{"id":"us-ky/krs-234.340","jurisdiction":"us-ky","citation":"KRS 234.340","heading":"Dealer's bond.","body":"(1) Every liquefied petroleum gas motor fuel dealer shall file with the department a\ncorporate bond, cash bond, or securities approved by the department in a minimum\namount of five hundred dollars ($500) and in a maximum amount of four (4)\nmonths' liability for taxes imposed under KRS 234.310 to 234.440 but not to exceed\nfifty thousand dollars ($50,000). If, however, a liquefied petroleum gas motor fuel\ndealer is bonded as provided in KRS 138.330 the department may waive the\nbonding requirement in this section provided a rider is attached to the bond to\nguarantee payment of all liquefied petroleum gas motor fuel taxes together with all\npenalties and interest thereon and secure faithful compliance with the provisions of\nKRS 234.310 to 234.440. The applicant for a  license shall be the principal obligor\nand this state shall be the obligee. The bond shall be conditioned upon the prompt\nfiling of true reports and the payment by the licensee to the department of all taxes\nlevied under KRS 234.310 to 234.440, together w ith all penalties and interest\nthereon and generally upon faithful compliance with the provisions of KRS 234.310\nto 234.440.\n(2) If the liability upon the bond is discharged or reduced, whether by judgment\nrendered, payment made, or otherwise or if in the opinion of the department any\nsurety has become unsatisfactory or unacceptable, the department may require the\nlicensee to file a new bond with satisfactory surety in the same form and amount,\nfailing which the department shall cancel the license in accord ance with the\nprovisions of this section. If a new bond is furnished by the licensee as above\nprovided, the department shall cancel the bond for which the new bond is\nsubstituted.\n(3) If upon an informal hearing, of which the licensee shall be given ten (1 0) days'\nnotice in writing, the department decides that the amount of the existing bond is\ninsufficient to insure payment to this state of the amount of the tax, penalties, and\ninterest for which the licensee is or may become liable, the licensee shall, up on the\nwritten demand of the department, file an additional bond in the same manner and\nform with surety thereon approved by the department, in any amount determined by\nthe department to be necessary, failing which the department shall cancel the license\nin accordance with the provisions of this section.\n(4) Any surety on a bond furnished by a licensee shall be released from all liability to\nthis state accruing on the bond after the expiration of sixty (60) days from the date\nupon which the surety has lodge d with the department a written request to be\nreleased, but this request shall not operate to release the surety from any liability\nalready accrued or which shall accrue before the expiration of the sixty (60) day\nperiod. The department shall, promptly on the receipt of the request, notify the\nlicensee who furnished the bond, and unless the licensee shall, before the expiration\nof the sixty (60) day period, file with the department a new bond with surety\nsatisfactory to the department in the amount and form  prescribed in this section, the\ndepartment shall cancel the license in accordance with the provisions of this section.\nIf the new bond is furnished by the licensee as above provided, the department shall\ncancel the bond for which the new bond is substituted.","path":["KRS Chapter 234"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=11029","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:52:49Z","sha256":"f417f9c2abe413f0d70c2512ab205bc6ea4e4aa9a3a8bce621a786886118c2e5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-234.330","next":"us-ky/krs-234.350"},"notice":"GroundRules: Original legal text. Not legal advice."}