13.1-1247 - Transaction of business without registration; civil penalty. - Virginia Statutes

§ 13.1-1247. Transaction of business without registration; civil penalty.

A. A foreign business trust transacting business in the Commonwealth shallnot maintain any action, suit, or proceeding in any court of the Commonwealthuntil it has registered in the Commonwealth.

B. The successor to a foreign business trust that transacted business in theCommonwealth without registering in the Commonwealth and the assignee of acause of action arising out of that business may not maintain a proceedingbased on that cause of action in any court in the Commonwealth until theforeign business trust or its successor has registered in the Commonwealth.

C. The failure of a foreign business trust to register in the Commonwealthshall not impair the validity of any contract or act of the foreign businesstrust or prevent the foreign business trust from defending any action, suit,or proceeding in any court of the Commonwealth.

D. If a foreign business trust transacts business in the Commonwealth withouta certificate of registration, each trustee, officer or employee of thebusiness trust who does any such business in the Commonwealth knowing that acertificate of authority is required and has not been obtained shall beliable for a civil penalty of not less than $500 and not more than $5,000,which may be imposed by the Commission or by any court in the Commonwealthbefore which an action against the business trust may lie, after the businesstrust and the individual have been given notice and an opportunity to beheard. Civil penalties paid pursuant to this chapter shall be deposited tothe credit of the Literary Fund.

E. A foreign business trust, by transacting business in the Commonwealthwithout registration, appoints the clerk of the Commission as its agent forservice of process with respect to causes of action arising out of thetransaction of business in the Commonwealth.

(2002, c. 621; 2008, c. 523.)