Sec. 34-540. Activities not constituting transacting business in this state.
Sec. 34-540. Activities not constituting transacting business in this state. (a)
Any foreign statutory trust may purchase, hold, mortgage, lease, sell and convey real
and personal property in this state for its lawful uses and purposes, and may hold such
property as it may acquire by foreclosure or otherwise in payment of debts due such
statutory trust without such action constituting transacting business in this state for the
purposes of sections 34-500 to 34-547, inclusive.
(b) Without excluding other activities which may not constitute transacting business
in this state, a foreign statutory trust shall not be considered to be transacting business
in this state, for the purposes of sections 34-500 to 34-547, inclusive, by reason of
carrying on in this state any one or more of the following activities: (1) Maintaining,
defending or settling any proceeding; (2) holding meetings of its trustees or beneficiaries
or carrying on any other activities concerning its internal affairs; (3) maintaining bank
accounts; (4) maintaining offices or agencies for the transfer, exchange and registration
of the foreign statutory trust's own securities or maintaining trustees or depositaries with
respect to those securities; (5) selling through independent contractors; (6) soliciting or
obtaining orders, whether by mail or through employees or agents or otherwise, if the
orders require acceptance outside this state before they become contracts; (7) creating
or acquiring indebtedness, mortgages and security interests in real or personal property;
(8) securing or collecting debts or enforcing mortgages and security interests in property
securing the debts; (9) voting securities or other equity ownership interests owned by
the foreign statutory trust; (10) conducting an isolated transaction that is complete within
thirty days and that is not one in the course of repeated transactions of a like nature; or
(11) transacting business in interstate commerce.
(c) A foreign statutory trust shall not be considered to be transacting business solely
because it: (1) Owns a controlling interest in a corporation or foreign corporation that
is transacting business in this state; (2) is a limited partner of a limited partnership or
foreign limited partnership that is transacting business in this state; or (3) is a member
or manager of a limited liability company or foreign limited liability company that is
transacting business in this state.
(d) This section does not apply in determining the contacts or activities that may
subject a foreign statutory trust to service of process or taxation in this state or to regulation under any other law of this state.
(P.A. 96-271, S. 248, 254.)
History: P.A. 96-271 effective October 1, 1997.