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324.410 Purposes of fund.
The purposes of the real estate education, research, and recovery fund shall be as
follows:
(1) If a licensee, acting in the capacity of a licensee, has been duly found guilty of
fraud in the violation of one (1) or more of the provisions of KRS 324.160, and
upon the conclusion of a final order entered by the commission, or by the
courts, if appealed, the commission may pay to the aggrieved person or
persons an aggregate amount not to exceed twenty thousand dollars ($20,000)
per claimant with combined payments to all claimants against any one (1)
licensee not to exceed fifty thousand dollars ($50,000), if the licensee has
refused to pay the claim within a period of twenty (20) days of entry of a final
order and if the amount or amounts of money in question are certain and
liquidated.
(2) The commission shall maintain a minimum level of four hundred thousand
dollars ($400,000) for recovery and guaranty purposes. These funds may be
invested and reinvested in the same manner as funds of the state employees'
retirement system and the interest from the investments shall be deposited to
the credit of the real estate education, research, and recovery fund. Sufficient
liquidity shall be maintained so that there shall be money available to satisfy
any and all claims which may be processed through the commission through
the means of formal administrative hearing as outlined in this chapter.
(3) The commission, in its discretion, may use any and all funds in excess of the
four hundred thousand dollars ($400,000) level, regardless of whether it is from
the real estate education, research, and recovery fund fees or accrued interest
thereon, for the following purposes:
(a) To carry out the advancement of education and research in the field of
real estate for the benefit of those seeking a real estate license, and those
licensed under the provisions of this chapter and the improvement and
making more efficient the real estate industry;
(b) To underwrite educational seminars, caravans, and other forms of
educational projects for the use and benefit generally of real estate
licensees;
(c) To establish a real estate chair or courses at Kentucky state institutions of
higher learning for the purpose of making the courses available to
licensees and the general public who may seek them on a college or
university level;
(d) To contract for a particular research project in the field of real estate for
the Commonwealth of Kentucky;
(e) To sponsor, contract for, and to underwrite other educational and
research projects of a similar nature having to do with the advancement of
the real estate field in Kentucky;
(f) To receive recommendations and to cooperate and work with the
Kentucky Association of Realtors and other real estate groups for the
enlightenment and advancement of the real estate licensees of Kentucky;
and
(g) To augment the trust and agency account for purposes of addressing
(4)
cash flow shortfalls, budget deficits, and for reimbursement of personnel,
administrative, operational, and capital expenses incurred by the trust and
agency account pursuant to the purposes of the education, research, and
recovery fund as provided in this section, an amount not to exceed two
hundred fifty thousand dollars ($250,000) annually.
Within one hundred twenty (120) days after the end of each fiscal year, the
commission shall make public, through its Web site or other public media, a
statement of income and expenses of the real estate education, research, and
recovery fund, the details of which are in accordance with state financial
reporting requirements.
Effective:July 12, 2012
History: Amended 2012 Ky. Acts ch. 98, sec. 1, effective July 12, 2012. -Amended 2010 Ky. Acts ch. 130, sec. 4, effective July 15, 2010. -- Amended
1998 Ky. Acts ch. 313, sec. 11, effective July 15, 1998. -- Amended 1992 Ky.
Acts ch. 448, sec. 29, effective July 14, 1992. -- Amended 1982 Ky. Acts
ch. 196, sec. 32, effective July 15, 1982. -- Amended 1978 Ky. Acts ch. 172,
sec. 11, effective June 17, 1978. -- Created 1972 Ky. Acts ch. 51, sec. 2.
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