808 KAR 9:010. Books and records to ensure that check cashers do not violate the law against multiple transactions in excessive amounts by a customer.


      RELATES TO: KRS 286.9-075, 286.9-100(1), (10), 286.9-110(1)(b), (2)

      STATUTORY AUTHORITY: KRS 286.9-090(1)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS 286.9-100(10) prohibits a licensee from having more than one (1) deferred deposit transaction from a customer at a time, with a face value greater than $500. KRS 286.9-090(1) authorizes the office to promulgate an administrative regulation to enforce KRS 286.9-010 to 286.9-120. This administrative regulation establishes requirements for a licensee to establish a method to detect and prevent instances where customers enter into an unlawful number of transactions in an excessive total amount permitted by KRS 286.9-100(10) by doing business at several branches of the licensee.


      Section 1. (1) A licensee shall institute procedures and maintain an accounting system that is designed to:

      (a) Prevent the licensee from entering into multiple transactions with a customer in violation of KRS 286.9-100(10), including procedures for:

      1. Maintaining a record of all current transactions with the licensee; and

      2. Checking the record of current transactions prior to issuance of a new transaction; and

      (b) Generate reports that will readily permit examination and verification of compliance with KRS 286.9-100(10) by department examiners.

      (2)(a) Except as provided in paragraph (b) of this subsection, each licensee shall achieve compliance with this administrative regulation within sixty (60) days of the effective date of this administrative regulation.

      (b) After the sixty (60) day period established in paragraph (a) of this subsection, a new licensee or an existing licensee applying for an additional location, shall demonstrate the ability to immediately comply with this administrative regulation at the time of application. (27 Ky.R. 1707; Am. 2788; eff. 4-9-2001; TAm eff. 5-2-2007.)