{"data":{"id":"us-ky/krs-286.13-050","jurisdiction":"us-ky","citation":"KRS 286.13-050","heading":"Bond -- Evidence of net worth -- Administrative regulation.  (Effective","body":"April 30, 2027)\n(1) As used in this section:\n(a) \"Bond\" means:\n1. A surety bond; or\n2. Another similar security acceptable to the commissioner;\n(b) \"Net worth\" means asset s less liabilities as determined by generally accepted\naccounting principles; and\n(c) \"Person\" includes any applicant and licensee.\n(2) (a) Except as otherwise provided in paragraph (b) of this subsection, an applicant\nshall submit with its license applica tion, and a licensee shall at all times\nmaintain, a bond in an amount that is not less than five hundred thousand\ndollars ($500,000).\n(b) The commissioner may require an applicant to submit before a license is\nissued, and a licensee to maintain at all time s, a bond in an amount in excess\nof five hundred thousand dollars ($500,000) but not exceeding five million\ndollars ($5,000,000) if the commissioner determines the additional amount is\nnecessary to cover the nature and extent of risks associated with the v irtual\ncurrency kiosk business activity in this state of the:\n1. Applicant and its proposed agents; or\n2. Licensee and its agents.\n(c) An applicant or a licensee that is required to increase its bond under paragraph\n(b) of this subsection shall submit to the commissioner evidence that it has\nsecured the additional bond amount not later than thirty (30) days after the\napplicant or licensee is notified by the commissioner in writing of the required\nincrease.\n(3) (a) The bond required under this section shall:\n1. Be in a form satisfactory to the commissioner;\n2. Hold and bind the principal and surety to the Commonwealth of\nKentucky for the be nefit of any claimants against the person and its\nagents to secure the faithful performance of the obligations of the person\nand its agents in accordance with the requirements of this subtitle,\nincluding the payment of unpaid fee amounts and civil monetary\npenalties due to the department under this subtitle;\n3. Except as provided in paragraph (e) of this subsection, cover claims\nbrought by a claimant for as long as the commissioner specifies, but not\nless than five (5) years after the later of the following:\na. The date of any violation of this subtitle by the person or its\nagents; or\nb. The date the person ceases to do business in this state;\n4. Be continuous and remain in effect until canceled;\n5. Require the person and surety to provide the commissioner at least thirty\n(30) days' written notice of an intent to cancel the bond; and\n6. Provide that cancellation of the bond shall not affect any liability\nincurred or accrued under the bond during the thirty (30) day notice\nperiod required under subparagraph 5. of this paragraph.\n(b) The aggregate liability on a bond shall not exceed the principal sum of the\nbond.\n(c) A claimant may maintain a civil action on a bond.\n(d) The commissioner may maintain a civil action on a bond on behalf of the\ndepartment or any other claimant in the Franklin Circuit Court or in any other\ncourt of competent jurisdiction, either in one (1) action or successive actions.\n(e) The commissioner may permit the amount of a bond to be reduced or\neliminated after a person ceases to do busines s in this state to the extent the\namount of a person's and its agents' outstanding obligations in this state are\nreduced.\n(4) In addition to the bond required under this section, an applicant shall submit with its\nlicense application, and a licensee shall at all times maintain, evidence of a net\nworth that is not less than five hundred thousand dollars ($500,000).\n(5) The commissioner may promulgate an administrative regulation in accordance with\nKRS Chapter 13A or issue an order to:\n(a) Exercise his or her discretion under this section; or\n(b) Otherwise carry out the requirements of this section.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=58285","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:16Z","sha256":"09895ce92882aafe1f177ab77061e2a911dd93f0a7316682e9d2fe10b78dbd1e","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.13-045","next":"us-ky/krs-286.13-055"},"notice":"GroundRules: Original legal text. Not legal advice."}