Title 605 | Chapter 001 | Regulation 071


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605 KAR 1:071.Change of ownership.

Section 1.

 

(1)

All licenses issued by the commission are non-transferable.

(2)

A complete change of ownership of a licensee shall require a new Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030 and the appropriate fee.

Section 2.

Upon the sale or transfer of a licensee's business or the operating assets of a business to a new individual or entity, the new owner shall secure a new license for each location acquired, unless the acquirer has a valid motor vehicle dealer license for the locations.

Section 3.

 

(1)

If the licensee is a corporation or limited liability company, the transfer of the controlling stock or controlling membership interest shall be reported to the commission within fifteen (15) days of the transfer.

(2)

The commission may require a new license application based on the reported transfer.

Section 4.

The commission shall be notified on a timely basis of the following:

(1)

the death of a licensee who is a sole proprietor;

(2)

the death or dissolution of a general partner of a partnership or limited partnership licensee; or

(3)

the death or dissolution of an owner of the controlling interest of a corporate or limited liability company licensee.

Section 5.

In the case of the death of a sole proprietor, the commission may, if the executor or administrator alone, or in conjunction with dealership employees, is capable of operating the business in compliance with KRS Chapter 190, allow a duly qualified executor or administrator to operate the business for the remainder of the calendar year. In the case of the death or dissolution of a partner, or the controlling owner of a corporation or limited liability company, the commission shall require a new Application for Motor Vehicle Dealer License, TC 98-1, incorporated by reference in 605 KAR 1:030 and the appropriate fee if the death or dissolution results in a material change to the financial, moral, or operational fitness of the licensee.

HISTORY: (48 Ky.R. 1675, 2206; eff. 2-16-2022.)

FILED WITH LRC: January 10, 2022
CONTACT PERSON: Suzanne Baskett, Executive Staff Advisor, Kentucky Motor Vehicle Commission, 200 Mero Street, Frankfort, Kentucky 40601, phone (502) 573-1000, fax (502) 227-8082, email Suzanne.Baskett@ky.gov.

7-Year Expiration: 2/16/2029

Last Updated: 2/17/2022


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