207-12 Exemptions and immunities. A foreign lender that:

(1) Does not maintain a place of business in this State;

(2) Conducts its principal activities outside this State; and

(3) Complies with this part,

does not by engaging in this State in any or all of the activities specified in section 207-13, violate the laws of this State relating to doing business or doing a banking, trust, or insurance business, or become subject to chapter 412, 414, or 431, or become subject to any taxation that would otherwise be imposed for doing business in or doing a banking, trust, or insurance business in, or having gross income or receipts from sources in, property in, or the conduct of any activity in, this State, or become subject to any taxation under chapter 235, 237, or 241, and no income or receipts of any foreign lender arising out of any of the activities specified in section 207-13 shall constitute income from sources in, property in, or activities conducted in this State for the purposes of any tax imposed by this State. Nothing in this part shall be construed to exempt the real property of a foreign lender from taxation to the same extent, according to its value, as other real property is taxed, or to preclude the inclusion of the dividends or other income from foreign lenders in the income of individuals taxable under chapter 235 to the same extent as is included dividends and other income from domestic lenders; provided that if any foreign lender shall acquire any property in this State in enforcement of the rights of the foreign lender in the event of a default by any borrower, as permitted by section 207-13(4), then commencing one year after title to that property has vested in the foreign lender, the rents or other receipts received by the foreign lender from, and the proceeds of sale by the foreign lender of, that property shall be subject to taxation under chapters 235 and 237 in the same manner and to the same extent as if the rents, other receipts, or proceeds were received by a resident of this State; and provided further that if any foreign lender shall otherwise acquire any property in this State or engage in any business or activities in this State not specified in section 207-13, then the rents and other receipts received by the foreign lender from that property and the proceeds of sale by the foreign lender of that property and all income and receipts from the foreign lender's business or activities in this State not specified in section 207-13 shall be subject to taxation under chapters 235 and 237 in the same manner and to the same extent as if the rents, other receipts, proceeds, and income were received by a resident of this State, but the other activities and business shall not deprive the foreign lender of the immunities and exemptions from taxation provided in this section with respect to the activities specified in section 207-13. [L 1961, c 194, 9; Supp, 98L-9; HRS 207-12; am L 1977, c 39, 1; am L 1983, c 167, 3; am L 1985, c 270, 4; am L 1993, c 350, 9; am L 2002, c 40, 5; am L 2017, c 12, 25]

 

 

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