367.403 Bond requirement.
198 words·~1 min read·
/ky/chapter-367/367-403A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)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.
(2)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.
(3)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.