201 KAR 30:320. Surety bond.
RELATES TO: KRS 324A.152(4)(c), 324A.154
STATUTORY AUTHORITY: KRS 324A.152(8), 324A.154(2)(a)
NECESSITY, FUNCTION, AND CONFORMITY: KRS 324A.154(2) requires the board to establish by administrative regulation the terms required for a surety bond to be provided by an appraisal management company. This administrative regulation establishes the terms of the surety bond for registration of an appraisal management company.
Section 1. (1) The surety bond required by KRS 324A.154(2) shall be filed on the AMC Surety Bond Form.
(2) A registrant shall maintain a valid surety bond, as specified in KRS 324A.154, in the amount of $25,000.
(3) (a) The surety bond shall indemnify the Kentucky Real Estate Appraisers Board, its roster of approved appraisers, and public claimants.
(b) The bond shall be subject to claims:
1. By the board for failure to pay any amount required by KRS 324A.150 through 324A.164 and 201 KAR 30:310 through 201 KAR 30:375; and
2. By any person who is damaged by the failure of the registrant to provide appraisal management services in accordance with KRS 324A.150 through 324A.164 and 201 KAR 30:310 through 201 KAR 30:375.
(4) The surety bond shall be maintained for at least one (1) year after an Appraisal Management Company’s registration is terminated, revoked, or otherwise loses its authority to operate.
(5)(a) Upon receipt by the board of notice of intent to cancel a surety bond by a corporate surety, the board shall immediately notify the principal of the bond of the effective date of the cancellation and that the principal shall furnish a like bond before the cancellation date or within thirty (30) days after the date of mailing the notice by the board, whichever is later.
(b) Failure to furnish the new surety bond in accordance with this administrative regulation shall cause the registration to be terminated until the new surety bond is furnished.
Section 2. Incorporation by Reference. (1) "AMC Surety Bond Form", 12/11, is incorporated by reference.
(2) This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Kentucky Real Estate Appraisers Board, 135 W. Irvine Street, Suite 301, Richmond, Kentucky 40475, (859) 623-1658, Monday through Friday, 8 a.m. to 4:30 p.m. (38 Ky.R. 421; 1298; eff. 2-3-12.)