138.670 Amount and conditions of bond -- Cabinet may require new bond -- Additional bond -- Release of surety. - Kentucky Statutes

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138.670 Amount and conditions of bond -- Cabinet may require new bond -- Additional bond -- Release of surety. (1) A motor carrier or heavy equipment motor carrier determined by the Transportation Cabinet to be at risk for nonpayment of its highway use taxes shall file with the
cabinet a corporate bond, cash bond, or securities approved by the cabinet in the
minimum amount of one thousand dollars ($1,000) and in a maximum amount of
four (4) months' liability for taxes imposed under KRS 138.655 to 138.725 but not
to exceed fifty thousand dollars ($50,000). 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 cabinet
of all taxes levied under KRS 138.655 to 138.725, together with all penalties and
interest thereon and generally upon faithful compliance with the provisions of KRS
138.655 to 138.725. (2) 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 cabinet any surety
has become unsatisfactory or unacceptable, the cabinet may require the licensee to
file a new bond with satisfactory surety in the same form and amount, failing which
the cabinet shall forthwith cancel the license. If a new bond is furnished by the
licensee as above provided, the cabinet shall cancel the bond for which the new
bond is substituted. (3) If, upon hearing of which the licensee shall be given ten (10) days' notice in writing, the cabinet 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 forthwith, upon written demand
of the cabinet, file an additional bond in the same manner and form with surety
thereon approved by the cabinet, in any amount determined by the cabinet to be
necessary, failing which the cabinet shall forthwith cancel the license. (4) Any surety on a bond furnished by a licensee shall be released from all liability to this state accruing on such bond after the expiration of sixty (60) days from the date
upon which the surety has lodged with the cabinet, 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
cabinet shall promptly, on 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 cabinet a new bond with surety satisfactory to the cabinet in the
amount and form hereinbefore provided, the cabinet shall forthwith cancel the
license. If the new bond is furnished by the licensee as above provided, the cabinet
shall cancel the bond for which the new bond is substituted. Effective: July 15, 1998
History: Amended 1998 Ky. Acts ch. 31, sec. 2, effective July 15, 1998. -- Amended 1970 Ky. Acts ch. 57, sec. 1. -- Amended 1956 (2d Extra. Sess.) Ky. Acts ch. 9,
sec. 18. -- Created 1954 Ky. Acts ch. 97, sec. 5.