{"data":{"id":"us-ky/krs-286.2-670","jurisdiction":"us-ky","citation":"KRS 286.2-670","heading":"Foreign financial institutions, activities deemed not transacting business","body":"in Kentucky.\n(1) (a) As used in this subsection, a \"foreign financial institution\" means any bank,\nbank holding company, trust company, savings and loan association,  savings\nand loan association holding company, credit union, or wholly owned\nsubsidiary of any of the foregoing, that is organized under the laws of another\nstate or of the United States.\n(b) Except as provided in subsection (2) of this section, a foreign financial\ninstitution shall not be considered to be doing, transacting, or carrying on\nbusiness in this state, or be required to qualify to do business in this state,\nsolely by reason of engaging in any or all of the following activities, either on\nits own behalf or as a trustee of a pension plan, employee's profit -sharing or\nretirement plan, or testamentary or inter vivos trust:\n1. The lending of money, or the acquisition by purchase, by contract to\npurchase, by making of advance commitments to purchase, o r by\nassignment to it of loans, including construction loans, or any interest in\nloans, secured in whole or in part by mortgages, deeds of trust, or other\nforms of security on real or personal property in this state, if the\nactivities are carried on from o utside this state by the institution or\nwithin this state by independent agencies on behalf of the institution;\n2. The receipt of principal and interest on any loans referenced in\nsubparagraph 1. of this paragraph;\n3. The making of physical inspections and  appraisals of real or personal\nproperty that secures or is proposed to secure any loan by an officer or\nemployee of the institution if the officer or employee making any\nphysical inspections and appraisals is not a resident of and does not\nmaintain his or her place of business in this state;\n4. The ownership of any loans and the enforcement of any loans by\ntrustee's sale, judicial process, or deed in lieu of foreclosure, or\notherwise;\n5. The modification, renewal, extension, transfer, or sale of loans, the\nacceptance of additional or substitute security for loans, the full or\npartial release of security for loans, or the acceptance of substitute or\nadditional obligors on loans if the activities are carried on from outside\nthis state by the institution or ca rried on within this state by independent\nagencies;\n6. The maintaining and defending of any action or suits relating to loans,\nmortgages, deeds of trust, security instruments or related agreements, or\nactivities referred to in this section or incidental thereto;\n7. The engaging, by contractual arrangement, of a corporatio n, firm, or\nassociation, qualified to do business in this state, which is not a\nsubsidiary or parent of the institution or under common management\nwith the institution, to make collections and to service loans in any\nmanner whatsoever, including:\na. The pa yment of ground rents, taxes, assessments, insurance, and\nthe like; and\nb. The making and performance of, on behalf of the institution,\nphysical inspections and appraisals of real or personal property\nsecuring, or proposed to secure, any loans;\n8. The acqu isition of title to real or personal property covered by any\nmortgages, deeds of trust, or other security instrument, by trustees,\npledgees, or judicial sales, by deed in lieu of foreclosure, or for the\npurpose of transferring title to any federal agency o r instrumentality as\nthe insurer or guarantor of any loans, the maintenance or defense of any\naction or suit relating to the possession of the property, and the retention\nof title to the property as acquired pending the orderly sale or other\ndisposition thereof; or\n9. The maintenance of accounts in banks or credit unions, authorized or\nlicensed to do and transact business as a bank or credit union.\n(2) The provisions of this section shall be inapplicable for purposes of determining\nwhether, and to what exte nt, a financial institution is subject to taxation under state\nlaw.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55140","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:57:10Z","sha256":"87ff5ff55b9d50a2d186a639a42211c6544e56a9919e2c87d4552ff048e197bc","source_id":"us-ky","stale":false,"prev":"us-ky/krs-286.2-105","next":"us-ky/krs-286.2-680"},"notice":"GroundRules: Original legal text. Not legal advice."}