§ 6A-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets.
SECTION 6A-8-103
§ 6A-8-103 Rules for determining whethercertain obligations and interests are securities or financial assets. –(a) A share or similar equity interest issued by a corporation, business trust,joint stock company, or similar entity is a security.
(b) An "investment company security" is a security."Investment company security" means a share or similar equity interest issuedby an entity 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-amount certificatecompany that is so registered. Investment company security does not include aninsurance policy or endowment policy or annuity contract issued by an insurancecompany.
(c) An interest in a partnership or limited liability companyis not a security unless it is dealt in or traded on securities exchanges or insecurities markets, its terms expressly provide that it is a security governedby this chapter, or it is an investment company security. However, an interestin a partnership or limited liability company is a financial asset if it isheld in a securities account.
(d) A writing that is a security certificate is governed bythis chapter and not by chapter 3 of this title, even though it also meets therequirements of that chapter. However, a negotiable instrument governed bychapter 3 of this title is a financial asset if it is held in a securitiesaccount.
(e) An option or similar obligation issued by a clearingcorporation to its participants is not a security, but is a financial asset.
(f) A commodity contract, as defined in §6A-9-102(a)(15), is not a security or a financial asset.
(g) A document of title is not a financial asset unlesssubsection 6A-8-102(a)(9)(iii) applies.