Kentucky Statutes 324A.152 – Requirement of registration — Application requirements — Criminal background checks — Annual renewal of registration — Administrative regulations
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(1) 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.
(2) 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 subparagraph 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
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;
6. The person certifying has not acted as an appraisal management company while not properly registered by the board; and
7. The appraisal management company is not owned, in whole or in part, directly or indirectly, by any person who has had an appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked in any state for a cause other than expiration, as determined by the relevant state appraiser regulatory program; and
(g) Any other information required by the board.
(3) 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.
(4) 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 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.
(5) (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.
(6) (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.
(7) (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.
(8) 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 KRS § 324A.164.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 21, sec. 8, effective June 29, 2021. — Amended
2013 Ky. Acts ch. 46, sec. 4, effective June 25, 2013. — Created 2011 Ky. Acts ch.
58, sec. 2, effective June 8, 2011.
(2) 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:
Terms Used In Kentucky Statutes 324A.152
- Action: includes all proceedings in any court of this state. See Kentucky Statutes 446.010
- any other state: includes any state, territory, outlying possession, the District of Columbia, and any foreign government or country. See Kentucky Statutes 446.010
- Appraisal: A determination of property value.
- Company: may extend and be applied to any corporation, company, person, partnership, joint stock company, or association. See Kentucky Statutes 446.010
- Domestic: when applied to a corporation, partnership, business trust, or limited liability company, means all those incorporated or formed by authority of this state. See Kentucky Statutes 446.010
- Federal: refers to the United States. See Kentucky Statutes 446.010
- Foreign: when applied to a corporation, partnership, limited partnership, business trust, statutory trust, or limited liability company, includes all those incorporated or formed by authority of any other state. See Kentucky Statutes 446.010
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Month: means calendar month. See Kentucky Statutes 446.010
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- Nolo contendere: No contest-has the same effect as a plea of guilty, as far as the criminal sentence is concerned, but may not be considered as an admission of guilt for any other purpose.
- real estate: includes lands, tenements, and hereditaments and all rights thereto and interest therein, other than a chattel interest. See Kentucky Statutes 446.010
- Service of process: The service of writs or summonses to the appropriate party.
- State: when applied to a part of the United States, includes territories, outlying possessions, and the District of Columbia. See Kentucky Statutes 446.010
- Year: means calendar year. See Kentucky Statutes 446.010
(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 subparagraph 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
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;
6. The person certifying has not acted as an appraisal management company while not properly registered by the board; and
7. The appraisal management company is not owned, in whole or in part, directly or indirectly, by any person who has had an appraiser license or certificate refused, denied, canceled, surrendered in lieu of revocation, or revoked in any state for a cause other than expiration, as determined by the relevant state appraiser regulatory program; and
(g) Any other information required by the board.
(3) 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.
(4) 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 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.
(5) (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.
(6) (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.
(7) (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.
(8) 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 KRS § 324A.164.
Effective: June 29, 2021
History: Amended 2021 Ky. Acts ch. 21, sec. 8, effective June 29, 2021. — Amended
2013 Ky. Acts ch. 46, sec. 4, effective June 25, 2013. — Created 2011 Ky. Acts ch.
58, sec. 2, effective June 8, 2011.