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14A.9.020 Consequences of transacting business without authority. (Effective January 1, 2011)

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Page 1 of 1 14A.9-020 Consequences of transacting business without authority. (Effective January 1, 2011) (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 <br>obtains a certificate of authority. (2) Neither the successor to a foreign entity that transacted business in this Commonwealth without a certificate of authority nor the assignee of a cause of <br>action arising out of that business shall maintain a proceeding based on that cause of <br>action in any court in this Commonwealth until the foreign entity or the assignee of <br>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 <br>requires a certificate of authority. If it so determines, the court may further stay the <br>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 (&#36;2) for each day it transacts business in this Commonwealth without a certificate of authority. The <br>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 certificate of authority shall not impair the validity of the acts of <br>the foreign entity or prevent it from defending any proceeding in this <br>Commonwealth. Effective: January 1, 2011 <br>History: Created 2010 Ky. Acts ch. 151, sec. 41, effective January 1, 2011.