286.8-060 Surety bonds required -- Uses of bonds -- New or supplemental bonds.
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Except as otherwise provided in this section, each mortgage loan company,
mortgage loan broker, and mortgage loan originator shall post or be covered by a
surety bond for the entire licensure or registration period in an amount prescribed by
the commissioner, but in no event shall the bond be less than two hundred fifty
thousand dollars (0,000) for mortgage loan companies and fifty thousand dollars
(,000) for mortgage loan brokers.
Every bond shall provide for suit thereon by any person who has a cause of action
under this subtitle. The total liability of the surety, to all persons, cumulative or
otherwise, shall not exceed the amount specified in the bond.
The bond shall be in a form prescribed by the commissioner and shall be made
payable to the commissioner. The terms of the bond shall provide that it may not be
terminated without thirty (30) days prior written notice to the commissioner.
Every bond shall be available for the recovery of expenses, fines, restitution, and
fees levied by the commissioner under this subtitle, and for losses or damages that
have been incurred by any borrower or consumer as a result of the registrant's or
licensee's failure to comply with the requirements of this subtitle.
Every bond shall provide that no suit shall be maintained to enforce any liability on
the bond unless brought within three (3) years after the act upon which it is based.
If the commissioner or the commissioner's representative shall at any time
reasonably determine that the bond or securities aforesaid are insecure, deficient in
amount, or exhausted in whole or part, he may by written order require the filing of
a new or supplemental bond or the deposit of new or additional securities in order to
secure compliance with this subtitle, the order to be complied with within thirty (30)
days following service thereof upon the registrant or licensee.
Effective: July 15, 2010
History: Amended 2010 Ky. Acts ch. 24, sec. 771, effective July 15, 2010. -- Amended
2009 Ky. Acts ch. 104, sec. 9, effective June 25, 2009. -- Amended 2008 Ky. Acts
ch. 175, sec. 21, effective April 24, 2008. -- Amended 2006 Ky. Acts ch. 218, sec. 4,
effective July 12, 2006. -- Amended 1998 Ky. Acts ch. 197, sec. 6, effective July 15,
1998. -- Amended 1994 Ky. Acts ch. 377, sec. 4, effective July 15, 1994. -- Amended
1986 Ky. Acts ch. 461, sec. 7, effective July 15, 1986. -- Created 1980 Ky. Acts
ch. 365, sec. 7, effective July 15, 1980.
Formerly codified as KRS 294.060.
Legislative Research Commission Note (7/12/2006). This section was amended in
2006 Ky. Acts ch. 218. In that same session, 2006 Ky. Acts ch. 247, sec. 38, required
that all sections of KRS Chapters 287, 288, 290, 291, 294, 366, 366A, and 368 be
renumbered as sections of a single KRS chapter entitled the "Kentucky Financial
Services Code." Therefore, the Statute Reviser, acting under KRS 7.136(1), has
changed the number of this section and codified it as a section of KRS Chapter 286.
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