(a) In this Chapter: (1) 'Adverse claim' means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the financial asset.(2) 'Bearer form,' as applied to a certificated security, means a form in which the security is payable to the bearer of the security certificate according to its terms but not by reason of an indorsement.(3) 'Broker' means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity.(4) 'Certificated security' means a security that is represented by a certificate.(5) 'Clearing corporation' means: (i) a person that is registered as a 'clearing agency' under the federal securities laws;(ii) a federal reserve bank; or(iii) any other person that provides clearance or settlement services with respect to financial assets that would require it to register as a clearing agency under the federal securities laws but for an exclusion or exemption from the registration requirement, if its activities as a clearing corporation, including promulgation of rules, are subject to regulation by federal securities laws but for an exclusion or exemption from the registration requirement, if its activities as a clearing corporation, including promulgation of rules, are subject to regulation by a federal or state governmental authority.(6) 'Communicate' means to: (i) send a signed writing; or(ii) transmit information by any mechanism agreed upon by the persons transmitting and receiving the information.(7) 'Entitlement holder' means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary. If a person acquires a security entitlement by virtue of § 4-8-501(b)(2) or (3), that person is the entitlement holder.(8) 'Entitlement order' means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement.(9) 'Financial asset,' except as otherwise provided in § 4-8-103, means: (i) a security;(ii) an obligation of a person or a share, participation, or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or an obligation of a person or a share, participation, or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment; or(iii) any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset under this chapter. As context requires, the term means either the interest itself or the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement.(10) [Reserved.](11) 'Indorsement' means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring, or redeeming the security or granting a power to assign, transfer, or redeem it.(12) 'Instruction' means a notification communicated to the issuer of an uncertificated security which directs that the or redeeming the security or granting a power to assign, transfer, or redeem it.(12) 'Instruction' means a notification communicated to the issuer of an uncertificated security which directs that the transfer of the security be registered or that the security be redeemed.(13) 'Registered form,' as applied to a certificated security, means a form in which: (i) the security certificate specifies a person entitled to the security; and(ii) a transfer of the security may be registered upon books maintained for that purpose by or on behalf of the issuer, or the security certificate so states.(14) 'Securities intermediary' means: (i) a clearing corporation; or(ii) a person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity.(15) 'Security,' except as otherwise provided in § 4-8-103, means an obligation of an issuer or a share, participation, or other interest in an issuer or in property or an enterprise of an issuer: (i) which is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of ise of an issuer: (i) which is represented by a security certificate in bearer or registered form, or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;(ii) which is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests, or obligations; and(iii) which: (A) is, or is of a type, dealt in or traded on securities exchanges or securities markets; or(B) is a medium for investment and by its terms expressly provides that it is a security governed by this chapter.(16) 'Security certificate' means a certificate representing a security.(17) 'Security entitlement' means the rights and property interest of an entitlement holder with respect to a financial asset specified in Part 5 (§ 4-8-501 et seq.).(18) 'Uncertificated security' means a security that is not represented by a certificate.(b) Other definitions applying to this chapter and the sections in which they appear are: Appropriate person§ 4-8-107Control§ 4-8-106Delivery§ 4-8-301Investment company security§ 4-8-103Issuer§ 4-8-201Overissue§ 4-8-210Protected purchaser§ 4-8-303Securities account§ 4-8-501(c) In addition, ppropriate person§ 4-8-107Control§ 4-8-106Delivery§ 4-8-301Investment company security§ 4-8-103Issuer§ 4-8-201Overissue§ 4-8-210Protected purchaser§ 4-8-303Securities account§ 4-8-501(c) In addition, Chapter 1 contains general definitions and principles of construction and interpretation applicable throughout this chapter.(d) The characterization of a person, business, or transaction for purposes of this chapter does not determine the characterization of the person, business, or transaction for purposes of any other law, regulation, or rule.Acts 1995, No. 425, § 1; 2005, No. 856, § 55.
Arkansas Legal Code