{"data":{"id":"us-ky/krs-367.474","jurisdiction":"us-ky","citation":"KRS 367.474","heading":"Performance bond by subdivider -- Cash in lieu of bond.","body":"(1) In the sale or offering for sale of any subdivision which is primarily directed toward\nrecreational or retirement use, in the sale of which any improvements are advertised\nbut not completed, or which are completed but for which supplies of labor and\nmaterial have not been paid, the subdivider shall furnish a performance bond\npayable to the Attorney General in an amount equal to the costs of all the\nimprovements, including, but not limited to, roads, lakes, golf courses, and stables\nwhich are advertised prior to the sale of the land or property. The bond shall remain\nin effect until the advertised improvements are made; and if they are not completed\nwithin a time deemed reasonable by the Attorney General, the bond shall, after a\nhearing, be forfeited to the A ttorney General for the use and benefit of the\npurchasers of the property. Surety for the bond shall be by a company authorized to\nwrite surety bonds in this state. Upon completion of the promised improvements\nand production of releases by all creditors wi th a potential lien interest in the\nimprovements and production of a verified statement to this effect, the subdivider\nmay petition the Attorney General for release of the bond.\n(2) If the land or property offered for sale by the subdivider is located outs ide of the\nCommonwealth of Kentucky and is sold both to Kentucky residents and residents of\nother jurisdictions, the Attorney General may accept a bond as described in\nsubsection (1) of this section equal to the pro rata share of improvements for that\nproperty that is reasonably anticipated to be sold to Kentucky residents.\n(3) In lieu of the bonding requirements appearing in subsection (1) of this section, a\nsubdivider may, with the approval of the Attorney General, place in an approved\nescrow account fift y percent (50%) of receipts of sales of the subdivided lots until\nthe amount necessary to make the improvements has been accumulated or the\nimprovements advertised by the subdivider made and the suppliers of labor and\nmaterial paid. If the improvements are  not made within a reasonable time as\ndetermined by the Attorney General, the escrow account, after hearing, shall revert\nto the benefit of the subdivision purchasers.","path":["KRS Chapter 367"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=34989","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:04Z","sha256":"7e47529b8073d3fbc49dab03497ac67f47d8ab48f4771013eebb4a846ece2b5c","source_id":"us-ky","stale":false,"prev":"us-ky/krs-367.472","next":"us-ky/krs-367.476"},"notice":"GroundRules: Original legal text. Not legal advice."}