Download as PDF
286.2-670 Foreign financial institutions, activities deemed not transacting
business in Kentucky.
(1)
Except as provided in subsection (2) of this section, a foreign financial
institution shall not be considered to be doing, transacting, or carrying on
business in this state solely by reason of engaging in any or all of the following
activities, either on its own behalf or as a trustee of a pension plan, employee's
profit-sharing or retirement plan, or testamentary or inter vivos trust:
(a) The lending of money, or the acquisition by purchase, by contract to
purchase, by making of advance commitments to purchase, or by
assignment to it of loans, including construction loans, or any interest in
loans, secured in whole or in part by mortgages, deeds of trust or other
forms of security on real or personal property in this state, if such
activities are carried on from outside this state by the lending institution or
within this state by independent agencies on behalf of said foreign lending
institution;
(b) The receipt of principal and interest on such loans;
(c) The making of physical inspections and appraisals of real or personal
property which secures or is proposed to secure any loan by an officer or
employee of a foreign lending institution if the officer or employee making
any physical inspections and appraisals is not a resident of and does not
maintain his place of business in this state;
(d) The ownership of any loans and the enforcement of any loans by
trustee's sale, judicial process, or deed in lieu of foreclosure, or otherwise;
(e) The modification, renewal, extension, transfer, or sale of loans or the
acceptance of additional or substitute security therefor or the full or partial
release of the security therefor or the acceptance of substitute or
additional obligors thereon if the activities are carried on from outside this
state by the lending institution or carried on within this state by
independent agencies;
(f) The maintaining and defending of any action or suits relating to loans,
mortgages, deeds of trust, security instruments or related agreements or
activities referred to herein or incidental thereto;
(g) The engaging, by contractual arrangement, of a corporation, firm or
association, qualified to do business in this state, which is not a subsidiary
or parent of the lending institution or which is not under common
management with the lending institution, to make collections and to
service loans in any manner whatsoever, including the payment of ground
rents, taxes, assessments, insurance and the like and the making, on
behalf of the lending institution, of physical inspections and appraisals of
real or personal property securing any loans or property which is
proposed to secure any loans, and the performance of any such
engagement;
(h) The acquisition of title to the real or personal property covered by any
mortgages, deeds of trust, or other security instrument, by trustees,
pledgees, or judicial sales, or by deed in lieu of foreclosure or for the
purpose of transferring title to any federal agency or instrumentality as the
(2)
insurer or guarantor of any loans, the maintenance or defense of any
action or suit relating to the possession of the property, and the retention
of title to any real or personal property as acquired pending the orderly
sale or other disposition thereof; or
(i) The maintenance of bank accounts in banks, authorized or licensed to do
and transact a banking business in this state.
The provisions of this section shall be inapplicable in determining whether a
financial institution is regularly engaged in business in this Commonwealth
within the meaning of that phrase as used in KRS 136.500 to 136.575.
Effective:June 25, 2009
History: Amended 2009 Ky. Acts ch. 104, sec. 24, effective June 25, 2009. -Amended 1996 Ky. Acts ch. 254, sec. 36, effective July 15, 1996. -- Created
1970 Ky. Acts ch. 228, sec. 1, effective June 18, 1970.
Formerly codified as KRS 287.670.
Legislative Research Commission Note (7/12/2006). In accordance with 2006
Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a
section of the Kentucky Financial Services Code, KRS Chapter 286.
Disclaimer: These codes may not be the most recent version. Kentucky may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.