§ 18-441-1403. Activities not constituting transacting business.

ACTIVITIES NOT CONSTITUTING TRANSACTING BUSINESS.

(a)  Activities of a foreign cooperative which do not constitute transacting business in this state under this article include:

(1)  Maintaining, defending, and settling an action or proceeding;

(2)  Holding meetings of the foreign cooperative’s members or directors or carrying on any other activity concerning the foreign cooperative’s internal affairs;

(3)  Maintaining accounts in financial institutions;

(4)  Maintaining offices or agencies for the transfer, exchange, and registration of the foreign cooperative’s own securities or maintaining trustees or depositories with respect to those securities;

(5)  Selling through independent contractors;

(6)  Soliciting or obtaining orders, whether by mail or electronic means, through employees, agents, or otherwise, if the orders require acceptance outside this state before they become contracts;

(7)  Creating or acquiring indebtedness, mortgages, or security interests in real or personal property;

(8)  Securing or collecting debts or enforcing mortgages or other security interests in property securing the debts, and holding, protecting, and maintaining property so acquired;

(9)  Conducting an isolated transaction that is completed within thirty (30) days and is not one in the course of similar transactions; and

(10)  Transacting business in interstate commerce.

(b)  For purposes of this article, the ownership in this state of income-producing real property or tangible personal property, other than property excluded under subsection (a) of this section, constitutes transacting business in this state.

(c)  This section does not apply in determining the contacts or activities that may subject a foreign cooperative to service of process, taxation, or regulation under law of this state other than the Uniform Limited Cooperative Association Act of 2009.

Added by Laws 2009, c. 68, § 124, eff. Jan. 1, 2010.