{"data":{"id":"us-ky/krs-14a.9-020","jurisdiction":"us-ky","citation":"KRS 14A.9-020","heading":"Consequences of transacting business without authority.","body":"(1) A foreign entity transacting business in this Commonwealth without a certificate of\nauthority may not maintain a proceeding in any court in this Commonwealth until it\nobtains a certificate of authority.\n(2) Neither the successor to a foreign entity that tr ansacted business in this\nCommonwealth without a certificate of authority nor the assignee of a cause of\naction arising out of that business shall maintain a proceeding based on that cause of\naction in any court in this Commonwealth until the foreign entit y or the assignee of\nthe cause of action obtains a certificate of authority.\n(3) A court may stay a proceeding commenced by a foreign entity, its successor, or\nassignee until it determines whether the foreign entity, its successor, or assignee\nrequires a certificate of authority. If it so determines, the court may further stay the\nproceeding until the foreign entity, its successor, or assignee obtains the certificate.\n(4) A foreign entity is liable for a civil penalty of two dollars ($2) for each day it\ntransacts business in this Commonwealth without a certificate of authority. The\nSecretary of State may collect all penalties due under this subsection.\n(5) Notwithstanding subsections (1) and (2) of this section, the failure of a foreign\nentity to obtain a ce rtificate of authority shall not impair the validity of the acts of\nthe foreign entity or prevent it from defending any proceeding in this\nCommonwealth.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=36569","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:32Z","sha256":"024b284d76dacbfa7a1ede1195cd1e52dbcfe75173a761722addd6e9a4757389","source_id":"us-ky","stale":false,"prev":"us-ky/krs-14a.9-010","next":"us-ky/krs-14a.9-030"},"notice":"GroundRules: Original legal text. Not legal advice."}