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234.340 Dealer's bond.
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Every liquefied petroleum gas motor fuel dealer shall file with the department a
corporate bond, cash bond, or securities approved by the department in a
minimum amount of five hundred dollars ($500) and in a maximum amount of
four (4) months' liability for taxes imposed under KRS 234.310 to 234.440 but
not to exceed fifty thousand dollars ($50,000). If, however, a liquefied
petroleum gas motor fuel dealer is bonded as provided in KRS 138.330 the
department may waive the bonding requirement in this section provided a rider
is attached to the bond to guarantee payment of all liquefied petroleum gas
motor fuel taxes together with all penalties and interest thereon and secure
faithful compliance with the provisions of KRS 234.310 to 234.440. The
applicant for a license shall be the principal obligor and this state shall be the
obligee. The bond shall be conditioned upon the prompt filing of true reports
and the payment by the licensee to the department of all taxes levied under
KRS 234.310 to 234.440, together with all penalties and interest thereon and
generally upon faithful compliance with the provisions of KRS 234.310 to
234.440.
If the liability upon the bond is discharged or reduced, whether by judgment
rendered, payment made, or otherwise or if in the opinion of the department
any surety has become unsatisfactory or unacceptable, the department may
require the licensee to file a new bond with satisfactory surety in the same form
and amount, failing which the department shall cancel the license in
accordance with the provisions of this section. If a new bond is furnished by the
licensee as above provided, the department shall cancel the bond for which the
new bond is substituted.
If upon an informal hearing, of which the licensee shall be given ten (10) days'
notice in writing, the department decides that the amount of the existing bond is
insufficient to insure payment to this state of the amount of the tax, penalties,
and interest for which the licensee is or may become liable, the licensee shall,
upon the written demand of the department, file an additional bond in the same
manner and form with surety thereon approved by the department, in any
amount determined by the department to be necessary, failing which the
department shall cancel the license in accordance with the provisions of this
section.
Any surety on a bond furnished by a licensee shall be released from all liability
to this state accruing on the bond after the expiration of sixty (60) days from the
date upon which the surety has lodged with the department a written request to
be released, but this request shall not operate to release the surety from any
liability already accrued or which shall accrue before the expiration of the sixty
(60) day period. The department shall, promptly on the receipt of the request,
notify the licensee who furnished the bond, and unless the licensee shall,
before the expiration of the sixty (60) day period, file with the department a new
bond with surety satisfactory to the department in the amount and form
prescribed in this section, the department shall cancel the license in
accordance with the provisions of this section. If the new bond is furnished by
the licensee as above provided, the department shall cancel the bond for which
the new bond is substituted.
Effective:June 20, 2005
History: Amended 2005 Ky. Acts ch. 85, sec. 637, effective June 20, 2005. -Amended 1996 Ky. Acts ch. 318, sec. 151, effective July 15, 1996. -- Created
1960 Ky. Acts ch. 176, sec. 5, effective July 1, 1960.
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