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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
(3)
(4)
appraisal management company;
(f) A certification from the registrant and any partner, member, manager, officer,
director, managing principal, controlling person, or person 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
(5)
(6)
(7)
(8)
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
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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