{"data":{"id":"us-ky/krs-286.11-013","jurisdiction":"us-ky","citation":"KRS 286.11-013","heading":"Bond or other security devices.","body":"(1) Each application shall be accompanied by a surety bond or other similar security\nacceptable to the commissioner, in the amount of at least five hundred thousand\ndollars ($500,000). The commissioner may increase the amount of the surety bond,\nor other simil ar security, to a maximum of five million dollars ($5,000,000), upon\nthe basis of the financial condition of an applicant, as evidenced by net worth,\ntransaction volume, or other relevant criteria that the commissioner may establish\nby order or rule.\n(2) The surety bond, or other similar security acceptable to the commissioner, shall be\nin a form satisfactory to the commissioner and shall hold and bind the principal and\nsurety to the Commonwealth of Kentucky for the benefit of any claimants against\nthe licensee to secure the faithful performance of the obligations of the licensee with\nrespect to the receipt, handling, transmission, and payment of money in connection\nwith the sale and issuance of payment instruments or money transmissions by the\nlicensee and its agent. The aggregate liability of the surety bond or other similar\nsecurity accepted shall not exceed the principal sum of the bond.\n(3) A claimant may maintain a civil action on the surety bond, or other similar security\nacceptable to the commissioner , against a licensee, or the commissioner may\nmaintain an action on behalf of the claimant, in the Franklin Circuit Court, or in any\nother court of competent jurisdiction, either in one (1) action or in successive\nactions.\n(4) A licensee shall at all times  maintain a surety bond, or other similar security\nacceptable to the commissioner, in the amount and type required under subsections\n(1) and (2) of this section. The commissioner may, at any time, accept a substitute\nor replacement surety bond, or other ac ceptable similar security, from the licensee,\nprovided that the requirements of subsections (1) and (2) are met.\n(5) The surety bond, or other similar security acceptable to the commissioner, shall be\ncontinuous and remain in effect until canceled. The lic ensee shall provide the\ncommissioner with at least a thirty (30) day written notice of the intent to cancel the\nsurety bond or other similar security accepted by the commissioner. The\ncancellation of the surety bond or other acceptable security shall not a ffect any\nliability incurred or accrued during the thirty (30) day notice of cancellation period.\n(6) A surety bond, or other security acceptable to the commissioner, shall remain in\nplace and cover claims for at least five (5) years after the date of any violation of\nthis subtitle by the licensee or its agent, or the date the licensee ceases providing\nmoney transmission services in this state, whichever date occurs last. The\ncommissioner may permit the licensee to reduce or eliminate the surety bond, or\nother similar security approved by the commissioner, prior to the expiration of the\nfive (5) years, to the extent that the amount of the licensee's payment instruments\noutstanding in this state are reduced.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14950","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:15Z","sha256":"7b8c13ba11d3372c05a580d18576d2c55128e553e93e0ba4f743b2b7c4d7ff4f","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.11-011","next":"us-ky/krs-286.11-015"},"notice":"GroundRules: Original legal text. Not legal advice."}