§207-12  Exemptions and immunities.  Aforeign lender which (1) does not maintain a place of business in this State,(2) conducts its principal activities outside this State, and (3) complies withthis part, does not by engaging in this State in any or all of the activitiesspecified in section 207-13, violate the laws of this State relating to doingbusiness or doing a banking, trust, or insurance business, or become subject tochapter 412, 414, or 431, or become subject to any taxation which would otherwisebe imposed for doing business in or doing a banking, trust, or insurancebusiness 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 anytaxation under chapter 235, 237, or 241, and no income or receipts of anyforeign lender arising out of any of the activities specified in the followingsection shall constitute income from sources in, property in, or activitiesconducted in this State for the purposes of any tax imposed by this State;provided that nothing in this part shall be construed to exempt the realproperty of a foreign lender from taxation to the same extent, according to itsvalue, as other real property is taxed, or to preclude the inclusion of thedividends or other income from foreign lenders in the income of individualstaxable under chapter 235 to the same extent as is included dividends and otherincome from domestic lenders; and provided further that if any such foreignlender shall acquire any property in this State in enforcement of the rights ofthe foreign lender in the event of a default by any borrower, as permitted bysection 207-13(4), then commencing one year after title to such property hasvested in the foreign lender, the rents or other receipts received by theforeign lender from, and the proceeds of sale by the foreign lender of, suchproperty shall be subject to taxation under chapters 235 and 237 in the samemanner and to the same extent as if the rents, other receipts, or proceeds werereceived by a resident of this State; and provided further that if any suchforeign lender shall otherwise acquire any property in this State or engage inany business or activities in this State not specified in section 207-13, thenthe rents and other receipts received by the foreign lender from such propertyand the proceeds of sale by the foreign lender of such property and all incomeand receipts from the foreign lender's business or activities in this State notspecified in section 207-13 shall be subject to taxation under chapters 235 and237 in the same manner and to the same extent as if such rents, other receipts,proceeds, and income were received by a resident of this State, but such otheractivities and business shall not deprive the foreign lender of the immunitiesand exemptions from taxation hereinabove stated with respect to the activitiesspecified in section 207-13. [L 1961, c 194, §9; Supp, §98L-9; HRS §207-12; amL 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]