Download as PDF
367.403 Bond requirement.
(1)
(2)
(3)
Every club that has a membership fee in excess of thirty-five dollars ($35) shall
maintain a bond of fifty thousand dollars ($50,000) issued by a surety company
admitted to do business in this state.
The bond required by this section shall be in favor of the Attorney General of
the Commonwealth of Kentucky for the benefit of any member who suffers loss
of prepayment made pursuant to a contract entered into after July 15, 1982,
due to insolvency of the club or the cessation of business by the club, or failure
by the club to perform under any contract. A copy of the bond shall be filed with
the Attorney General prior to the making of any membership contract by a club.
Any person claiming against the bond may maintain an action at law against
the club and the surety. Failure to so maintain a bond as required by this
section shall make the principals of any club personally liable for the claims of
members.
The aggregate liability of the surety to all persons for all breaches of the
conditions of the bonds provided herein shall in no event exceed the amount of
the bond.
Effective:July 15, 1988
History: Amended 1988 Ky. Acts ch. 62, sec. 4, effective July 15, 1988. -- Created
1982 Ky. Acts ch. 21, sec. 5, effective July 15, 1982.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
