KRS 14A.9-020: Consequences of transacting business without authority.

(1) A foreign entity transacting business in this Commonwealth without a certificate of

authority may not maintain a proceeding in any court in this Commonwealth until it

obtains a certificate of authority.

(2) Neither the successor to a foreign entity that tr ansacted business in this

Commonwealth without a certificate of authority nor the assignee of a cause of

action arising out of that business shall maintain a proceeding based on that cause of

action in any court in this Commonwealth until the foreign entit y or the assignee of

the cause of action obtains a certificate of authority.

(3) A court may stay a proceeding commenced by a foreign entity, its successor, or

assignee until it determines whether the foreign entity, its successor, or assignee

requires a certificate of authority. If it so determines, the court may further stay the

proceeding until the foreign entity, its successor, or assignee obtains the certificate.

(4) A foreign entity is liable for a civil penalty of two dollars ($2) for each day it

transacts business in this Commonwealth without a certificate of authority. The

Secretary of State may collect all penalties due under this subsection.

(5) Notwithstanding subsections (1) and (2) of this section, the failure of a foreign

entity to obtain a ce rtificate of authority shall not impair the validity of the acts of

the foreign entity or prevent it from defending any proceeding in this

Commonwealth.