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324A.152 Requirement of registration -- Application requirements -- Criminal
background checks -- Annual renewal of registration -- Administrative
regulations.
(1)
(2)
A person shall not act or offer to act as an appraisal management company or
perform appraisal management services within the Commonwealth unless
registered by the board.
To be registered by the board, a person shall make written application to the
board, submit to a criminal background check as provided in subsection (3) of
this section, pay a filing fee established by the board, and pay the fee required
to be included in the appraisal management company recovery fund created in
KRS 324A.155. The written application shall include the following information:
(a) The name, street address, and telephone contact information of the
person seeking registration;
(b) 1.
If the registrant is a domestic organization, the designation of an
agent for service of process; or
2.
If the registrant is a foreign organization, documentation that the
foreign organization is authorized to transact business in the
Commonwealth and has appointed an agent for service of process
by submitting a copy of:
a.
The registrant's filing with the Secretary of State appointing an
agent for service of process; and
b.
A certificate of authority issued by the Secretary of State.
A foreign organization's failure to comply with this paragraph
may result in rejection of the application;
(c) The name, residential street address, and contact information of any
person who owns ten percent (10%) or more of the appraisal
management company for which registration is being requested;
(d) The name, residential street address, and contact information of a
controlling person or managing principal;
(e) A certification that the registrant:
1.
Has a system and process in place to verify that any person being
added to the appraiser panel of the appraisal management
company, or who may be used by the appraisal management
company to otherwise perform appraisals, holds a license in good
standing in this state under this chapter;
2.
Has a system and process in place to review the work of all
appraisers that are performing appraisal services for the appraisal
management company on a periodic basis to ensure that the
appraisal services are being conducted in accordance with the
minimum USPAP standards; and
3.
Maintains a detailed record of each request for appraisal services
that it receives and the appraiser that performs the appraisal
services for the appraisal management company;
(f) A certification from the registrant and any partner, member, manager,
officer, director, managing principal, controlling person, or person
(3)
(4)
occupying a similar status or performing similar functions, or person
directly or indirectly controlling the registrant that:
1.
The application for registration when filed or after filing contains no
statement that, in light of the circumstances under which it was
made, is false or misleading with respect to a material fact;
2.
The person certifying has not violated or failed to comply with KRS
324A.154, 324A.156, or 324A.158;
3.
The person certifying and each person who owns ten percent (10%)
or more of the registrant has not pled guilty or nolo contendere to or
been found guilty of:
a.
A felony; or
b.
Within the past ten (10) years, a misdemeanor involving
mortgage lending or real estate appraising, or an offense
involving breach of trust or fraudulent or dishonest dealing;
4.
The person certifying is not permanently or temporarily enjoined by
a court of competent jurisdiction from engaging in or continuing any
conduct or practice involving appraisal management services or
operating an appraisal management company;
5.
The person certifying is not the subject of an order of the board or
any other state's appraisal management company regulatory agency
denying, suspending, or revoking the person's privilege to operate
as an appraisal management company; and
6.
The person certifying has not acted as an appraisal management
company while not properly registered by the board; and
(g) Any other information required by the board.
The board shall require a national and state criminal background check on the
person certifying under subsection (2)(f) of this section and each person who
owns ten percent (10%) or more of the registrant under the following
requirements:
(a) The person certifying and each person who owns ten percent (10%) or
more of the registrant shall provide his or her fingerprints to the
Department of Kentucky State Police for submission to the Federal
Bureau of Investigation after a state criminal background check is
conducted;
(b) The results of the national and state criminal background check shall be
sent to the board; and
(c) Any fee charged by the Department of Kentucky State Police and the
Federal Bureau of Investigation shall be an amount no greater than the
actual cost of processing the request and conducting the check.
The board shall issue a certificate of registration to a registrant authorizing the
registrant to act or offer to act as an appraisal management company in this
state upon:
(a) Receipt of a properly completed application;
(b) Payment of the required filing fee;
(c) Payment of the fee required to be included in the appraisal management
(5)
(6)
(7)
(8)
company recovery fund; and
(d) A determination by the board that:
1.
The registrant has not had a previous registration suspended or
revoked; and
2.
The activities of the applicant shall be directed and conducted by
persons who:
a.
Have not had a previous registration suspended or revoked;
b.
Have not pled guilty or nolo contendere to or been found guilty
of a felony; or
c.
Within the past ten (10) years have not pled guilty, pled nolo
contendere to, or been found guilty of a misdemeanor involving
mortgage lending or real estate appraising or an offense
involving a breach of trust or fraudulent or dishonest dealing.
(a) If the board finds that there is substantial reason to deny the application
for registration, the board shall notify the registrant that the application
has been denied and shall afford the registrant an opportunity for a
hearing before the board to show cause why the registration should not
be denied.
(b) All proceedings concerning the denial of a certificate of registration shall
be conducted in accordance with KRS Chapter 13B.
(c) The acceptance by the board of an application for registration does not
constitute the approval of its contents or waive the authority of the board
to take disciplinary action under KRS 324A.162.
(a) Registrations issued under this section shall be renewed annually.
(b) Renewal shall occur on October 31 of each year.
(c) If the initial registration occurs less than six (6) months before October
31, the renewal shall not be required until October 31 of the following
year, and shall then be renewed on October 31 of each year thereafter.
(a) Failure to renew a registration in a timely manner shall result in a loss of
authority to operate.
(b) A request to reinstate a certificate of registration shall be accompanied by
payment of a penalty of fifty dollars ($50) for each month of delinquency,
up to six (6) months after expiration.
(c) After six (6) months' delinquency, a new application for registration shall
be required.
The board shall promulgate administrative regulations to establish standards
for the operation of appraisal management companies and for the
implementation and enforcement of KRS 324A.150 to 324A.164.
Effective:June 25, 2013
History: Amended 2013 Ky. Acts ch. 46, sec. 4, effective June 25, 2013. -- Created
2011 Ky. Acts ch. 58, sec. 2, effective June 8, 2011.
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