Here's how I'd handle it:
Remove the cover from a basement box and mount a surface mount box to that. If the basement box is already surface mounted, then just use it as a junction box. Otherwise, the surface mount box is just a way to get a wire into the basement outlet box.
Run a section of 12/2UG ("underground") into the box, then feed the other end through your hole in the wall and attach it to a surface mount, weather proof box and outlet you install wehere ever you want to plug the transformer in. You're basically doing the same thing as you suggested -but now, it should meet code.Why do low voltage transformers need to be installed outdoors only?Connections to L.V. outdoor lights are not covered and often consist of a barb the pierces the L.V. wire to get power. Even though this isn't dangerous, this type of open connection just simply isn't code inside a home. Low Voltage lighting is becoming more popular inside homes, but the connections are more protected to meet code. Use your own judgement, but it seems unlikely that you would have a problem with what you want to do.Why do low voltage transformers need to be installed outdoors only?It may be because the power pack gives off ozone and needs to be ventilated, as long as the power pack is installed outside then I don't think there would be a problem putting the light inside. Drill a hole through the side of the house and run the wires, then be sure to caulk the holes to keep the bugs and air out.
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