{"data":{"id":"us-ky/krs-286.9-040","jurisdiction":"us-ky","citation":"KRS 286.9-040","heading":"Qualifications for license -- Liability of surety.","body":"To qualify for a license, an applicant shall satisfy the following requirements:\n(1) The applicant shall deposit with the commissioner one (1) of the following\ninstruments:\n(a) An irrevocable letter of credit in the following amounts:\n1. If an applicant ha s only one (1) business location, the amount shall be\nfifty thousand dollars ($50,000);\n2. If an applicant has two (2) to five (5) business locations, the amount\nshall be one hundred thousand dollars ($100,000);\n3. If an applicant has six (6) to ten (10) b usiness locations, the amount\nshall be one hundred fifty thousand dollars ($150,000);\n4. If an applicant has eleven (11) to twenty (20) business locations, the\namount shall be two hundred thousand dollars ($200,000);\n5. If an applicant has twenty -one (21) to thirty (30) business locations, the\namount shall be three hundred thousand dollars ($300,000);\n6. If an applicant has thirty -one (31) to forty (40) business locations, the\namount shall be four hundred thousand dollars ($400,000); and\n7. If an applicant has more than forty (40) business locations, the amount\nshall be five hundred thousand dollars ($500,000);\n(b) A corporate surety bond made payable to the commissioner in the same\namount that is required in paragraph (1)(a) of this section;\n(c) Evidence th at the applicant has established an account payable to the\ncommissioner in a federally insured financial institution in this state and has\ndeposited money of the United States in an amount equal to the amount of the\nrequired letter of credit; or\n(d) A savings certificate of a federally insured financial institution in this state for\nan amount payable that is equal to the amount of the required letter of credit\nand that is not available for withdrawal except by direct order of the\ncommissioner. Interest earned on the certificate accrues to the applicant.\n(2) Every instrument required in this section shall provide for suit thereon by any\nperson who has a cause of action under this subtitle. The total liability of the surety,\nto all persons, cumulative or otherwise, shall not exceed the amount specified in the\nbond.\n(3) Every instrument required in this section shall be made payable to the\ncommissioner.\n(4) Every instrument required in this section shall be available for the recovery of\nexpenses, fines, an d fees levied by the commissioner under this subtitle, and for\nlosses or damages that are determined by the commissioner to have been incurred\nby any customer as a result of the applicant's or licensee's failure to comply with the\nrequirements of this subtitle.\n(5) Every instrument required in this section shall provide that no suit shall be\nmaintained to enforce any liability on the bond unless brought within three (3) years\nafter the act upon which it is based.\n(6) The financial responsibility, financial condition, business experience, character, and\ngeneral fitness of the applicant shall reasonably warrant the belief that the\napplicant's business will be conducted honestly, carefully, and efficiently. In\ndetermining whether this qualification has been met , the commissioner may review\nand approve:\n(a) The business record and the capital adequacy of the applicant;\n(b) The competence, experience, integrity, and financial ability of any person\nwho:\n1. Is a director, officer, supervisory employee, or five percent (5%) or more\nshareholder of the applicant; or\n2. Owns or controls the applicant; and\n(c) Any record, on the part of the applicant or any person referred to in\nsubparagraph (b)1. and 2. of:\n1. Any criminal activity;\n2. Any fraud or other act of personal dishonesty;\n3. Any act, omission, or practice which constitutes a breach of a fiduciary\nduty; or\n4. Any suspension, revocation, or removal, by any agency or department of\nthe United States or any state, from participation in the conduct of any\nbusiness.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=14902","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:14Z","sha256":"c6f907e426876d5198f504bc0801525d430e64aa4639bb95bac9a5cfc4395298","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.9-035","next":"us-ky/krs-286.9-050"},"notice":"GroundRules: Original legal text. Not legal advice."}