400.8-103. Rules for determining whether certain obligations and interests are securities or financial assets.
Rules for determining whether certain obligations and interests aresecurities or financial assets.
400.8-103. (a) A share or similar equity interest issued by acorporation, business trust, joint stock company or similar entity is asecurity.
(b) An "investment company security" is a security. "Investmentcompany security" means a share or similar equity interest issued by anentity that is registered as an investment company under the federalinvestment company laws, an interest in a unit investment trust that is soregistered, or a face-amount certificate issued by a face-amountcertificate company that is so registered. Investment company securitydoes not include an insurance policy or endowment policy or annuitycontract issued by an insurance company.
(c) An interest in a partnership or limited liability company is nota security unless it is dealt in or traded on securities exchanges or insecurities markets, its terms expressly provide that it is a securitygoverned by this article, or it is an investment company security.However, an interest in a partnership or limited liability company is afinancial asset if it is held in a securities account.
(d) A writing that is a security certificate is governed by thisarticle and not by article 3 of this chapter, even though it also meets therequirements of that article. However, a negotiable instrument governed byarticle 3 of this chapter is a financial asset if it is held in asecurities account.
(e) An option or similar obligation issued by a clearing corporationto its participants is not a security, but is a financial asset.
(f) A commodity contract, as defined in section 400.9-102(a)(14), isnot a security or a financial asset.
(L. 1963 p. 503 § 8-103, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6, A.L. 2001 S.B. 288)Effective 7-01-01