8.8A-103 - A-103. Rules for determining whether certain obligations and interests are securities or financial assets.
§ 8.8A-103. Rules for determining whether certain obligations and interestsare securities or financial assets.
(a) A share or similar equity interest issued by a corporation, businesstrust, joint stock company, or similar entity is a security.
(b) An "investment company security" is a security. "Investment companysecurity" means a share or similar equity interest issued by an entity thatis registered as an investment company under the federal investment companylaws, an interest in a unit investment trust that is so registered, or aface-amount certificate issued by a face-amount certificate company that isso registered. Investment company security does not include an insurancepolicy or endowment policy or annuity contract issued by an insurance company.
(c) An interest in a partnership or limited liability company is not asecurity unless it is dealt in or traded on securities exchanges or insecurities markets, its terms expressly provide that it is a securitygoverned by this title, or it is an investment company security. However, aninterest in a partnership or limited liability company is a financial assetif it is held in a securities account.
(d) A writing that is a security certificate is governed by this title andnot by Title 8.3A, even though it also meets the requirements of that title.However, a negotiable instrument governed by Title 8.3A is a financial assetif it is held in a securities account.
(e) An option or similar obligation issued by a clearing corporation to itsparticipants is not a security, but is a financial asset.
(f) A commodity contract, as defined in subdivision (a) (15) of § 8.9A-102,is not a security or a financial asset.
(g) A document of title is not a financial asset unless subdivision (a) (9)(iii) of § 8.8A-102 applies.
(1996, c. 216; 2000, c. 1007; 2004, c. 200.)