2006 Kentucky Revised Statutes - .1103   Effect of failure to qualify.

362.1-1103 Effect of failure to qualify. (1) A foreign limited liability partnership transacting business in this Commonwealth shall not maintain an action or proceeding in this Commonwealth unless it has in effect a statement of foreign qualification. (2) The successor to a foreign limited liability partnership that transacted business in this Commonwealth without having filed a statement of foreign qualification and the assignee of a cause of action arising out of that business shall not maintain a proceeding based on that cause of action in any court in this Commonwealth until the foreign limited liability partnership or its successor files a statement of foreign qualification. (3) A court may stay a proceeding commenced by a foreign limited liability partnership, its successor, or assignee, until it determines whether the foreign limited liability partnership or its successor is obligated to have filed a statement of foreign qualification. If it so determines, then the court may further stay the proceeding until the limited liability partnership or its successor files the statement of foreign qualification. (4) The failure of a foreign limited liability partnership to have in effect a statement of foreign qualification does not impair the validity of a contract or act of the foreign limited liability partnership or preclude it from defending an action or proceeding in this Commonwealth. (5) A limitation on personal liability of a partner is not waived solely by transacting business in this Commonwealth without having filed and having in effect a statement of foreign qualification. (6) A foreign limited liability partnership transacting business in this Commonwealth without filing and having in effect a statement of foreign qualification shall be deemed to have appointed the Secretary of State as its agent for service of process with respect to causes of action arising out of the transaction of business in this Commonwealth. (7) A foreign limited liability partnership shall be liable for a civil penalty of two dollars ($2) for each day, but not to exceed a total of five hundred dollars ($500) for each year, it transacts business in this Commonwealth without having filed a statement of foreign qualification. The Attorney General may collect all penalties due under this subsection. Effective: July 12, 2006 History: Created 2006 Ky. Acts ch. 149, sec. 73, effective July 12, 2006. Page 1 of 1