KRS 286.2-670: Foreign financial institutions, activities deemed not transacting business

in Kentucky.

(1) (a) As used in this subsection, a "foreign financial institution" means any bank,

bank holding company, trust company, savings and loan association, savings

and loan association holding company, credit union, or wholly owned

subsidiary of any of the foregoing, that is organized under the laws of another

state or of the United States.

(b) 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, or be required to qualify to do 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:

1. The lending of money, or the acquisition by purchase, by contract to

purchase, by making of advance commitments to purchase, o r 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 the

activities are carried on from o utside this state by the institution or

within this state by independent agencies on behalf of the institution;

2. The receipt of principal and interest on any loans referenced in

subparagraph 1. of this paragraph;

3. The making of physical inspections and appraisals of real or personal

property that secures or is proposed to secure any loan by an officer or

employee of the institution if the officer or employee making any

physical inspections and appraisals is not a resident of and does not

maintain his or her place of business in this state;

4. 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;

5. The modification, renewal, extension, transfer, or sale of loans, the

acceptance of additional or substitute security for loans, the full or

partial release of security for loans, or the acceptance of substitute or

additional obligors on loans if the activities are carried on from outside

this state by the institution or ca rried on within this state by independent

agencies;

6. 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 in this section or incidental thereto;

7. The engaging, by contractual arrangement, of a corporatio n, firm, or

association, qualified to do business in this state, which is not a

subsidiary or parent of the institution or under common management

with the institution, to make collections and to service loans in any

manner whatsoever, including:

a. The pa yment of ground rents, taxes, assessments, insurance, and

the like; and

b. The making and performance of, on behalf of the institution,

physical inspections and appraisals of real or personal property

securing, or proposed to secure, any loans;

8. The acqu isition of title to real or personal property covered by any

mortgages, deeds of trust, or other security instrument, by trustees,

pledgees, or judicial sales, by deed in lieu of foreclosure, or for the

purpose of transferring title to any federal agency o r instrumentality as

the 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 the property as acquired pending the orderly sale or other

disposition thereof; or

9. The maintenance of accounts in banks or credit unions, authorized or

licensed to do and transact business as a bank or credit union.

(2) The provisions of this section shall be inapplicable for purposes of determining

whether, and to what exte nt, a financial institution is subject to taxation under state

law.