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365.420 Application for license -- Bond.
Any person proposing to conduct any sale governed by KRS 365.410 to 365.480 and
365.992 shall file an application in writing and under oath with the county clerk setting
out the following facts and information regarding the proposed sale:
(1) The name and address of the applicant for the license, who shall be the owner of the
goods to be sold. If the applicant is a partnership, corporation, firm, or association,
the name, position, and address of all partners or officers, the address of the
principal office within the state, the date and place of incorporation or organization,
and whether controlling interest in the firm or business was transferred within the
twelve (12) months prior to the date of the filing of the application.
(2) The name and style in which the sale is to be conducted, and the address of the
premises where the sale is to be conducted.
(3) The dates and period of time during which the sale is to be conducted.
(4) The name and address of the person who will be in charge and responsible for the
conduct of the sale.
(5) The nature of the occupancy where the sale is to be held, whether by lease or
otherwise, and the effective date of termination of the occupancy.
(6) A full explanation with regard to the condition or necessity which is the occasion
for the sale, including a statement of the descriptive name of the sale and the
reasons why the name is truthfully descriptive of the sale. If the application is for a
license to conduct a removal sale, it shall also contain a statement setting forth the
location of the premises to which the business is to be moved. If the application is
for a license to conduct a fire sale, it shall contain a statement as to the time,
location and cause of the damage.
(7) A full, detailed and complete inventory of the goods that are to be sold, which
inventory shall:
(a) Itemize the goods to be sold and contain sufficient information concerning
each item or class of items, to clearly identify them. That information shall
include, but not be limited to, the quantity, make, brand name, model, and
manufacturer's number, if applicable. The itemization shall be set out in forms
prescribed by the Attorney General pursuant to administrative regulation. The
Attorney General may design a particularized form to be used for businesses
that because of their nature or the type of merchandise offered or sold are
better suited to the use of a specialized form.
(b) List separately any goods which were purchased during a ninety (90) day
period immediately prior to the date of making application for the license.
(c) Show the cost of each item or class of items of goods and the total retail value
of the inventory, together with the name and address of the seller or supplier
of the items to the applicant, the date of the purchase, and the date of the
delivery of each item to the applicant. The cost listed shall conform with the
costs listed on the inventory used for the applicant's most recent federal
income tax return adjusted for sales and purchases; and
(8) Provide a good and sufficient bond, payable to the Commonwealth of Kentucky in
the penal sum of one thousand dollars ($1,000), with sureties approved by the court
judge, conditioned on compliance with KRS 365.410 to 365.480 and 365.992 and,
attached to the bond, a verified statement by the owner or his duly authorized agent:
(a) That the sale is for the purpose designated in the advertising of the sale;
(b) That the inventory contains no goods on consignment or not purchased in the
usual course of business for resale, on bona fide orders without cancellation or
return privileges;
(c) That no goods will be added to the inventory after the application is made or
during the sale;
(d) That the applicant or any person with whom the applicant is or has been
associated in the business has not conducted a going out of business sale at the
same location within two (2) years prior to the date of filing of the application;
(e) That no means have been established by the applicant for continuation of the
business at the same location upon termination of the sale in the case of a
going out of business sale; and the business described in such going out of
business sale is to be discontinued upon termination of the sale and is not to
be continued by the same person, directly or indirectly, by partnership,
corporation, or otherwise, under the same name or under a different name at
the same location for which the inventory for the sale was filed;
(f) That no goods listed in the inventory have been the subject of a licensed sale
conducted within one (1) year prior to the date of the application, unless they
were damaged by fire, smoke, or water while in the possession of the
applicant.
Effective: July 15, 1994
History: Amended 1994 Ky. Acts ch. 305, sec. 1, effective July 15, 1994. -- Amended
1978 Ky. Acts ch. 384, sec. 494, effective June 17, 1978. -- Created 1966 Ky. Acts
ch. 60, sec. 3.
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