1:(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 endorsement.(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 ncy 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 a federal or state governmental authority.(6) 'Communicate' means to:(i) send a signed record; 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 IC 26-1-8.1-501(b)(2) or IC 26-1-8.1-501(b)(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 IC 26-1-8.1-103, 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, that is, or is of a type, in IC 26-1-8.1-103, 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, that is, or is of a type, dealt in or traded on financial markets, or that 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 IC 26-1-8.1.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 an uncertificated security, a security certificate, or a security entitlement.(10) 'Good faith', for purposes of the obligation of good faith in the performance or enforcement of contracts or duties within IC 26-1-8.1, means honesty in fact and the observance of reasonable commercial standards of fair dealing.(11) 'Endorsement' means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate of reasonable commercial standards of fair dealing.(11) 'Endorsement' 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 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 IC 26-1-8.1-103, means an obligation of an issuer or a share, participation, or aintains securities accounts for others and is acting in that capacity.(15) 'Security', except as otherwise provided in IC 26-1-8.1-103, 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 the issuer;(ii) which is one (1) 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 IC 26-1-8.1.(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 IC 26-1-8.1-501 through IC 26-1-8.1-511.(18) 'Uncertificated security' means a security that is not represented by a certificate.(b) The following older with respect to a financial asset specified in IC 26-1-8.1-501 through IC 26-1-8.1-511.(18) 'Uncertificated security' means a security that is not represented by a certificate.(b) The following definitions in IC 26-1-8.1 and in IC 26-1 apply to this article:'Appropriate person'. IC 26-1-8.1-107.'Control'. IC 26-1-8.1-106.'Controllable account'. IC 26-1-9.1-102.'Controllable electronic record'. IC 26-1-12-102.'Controllable payment intangible'. IC 26-1-9.1-102.'Delivery'. IC 26-1-8.1-301.'Investment company security'. IC 26-1-8.1-103.'Issuer'. IC 26-1-8.1-201.'Overissue'. IC 26-1-8.1-210.'Protected purchaser'. IC 26-1-8.1-303.'Securities account'. IC 26-1-8.1-501.(c) In addition, IC 26-1-1 contains general definitions and principles of construction and interpretation applicable throughout IC 26-1-8.1.(d) The characterization of a person, business, or transaction for purposes of IC 26-1-8.1 does not determine the characterization of the person, business, or transaction for purposes of any other law, regulation, or rule.As added by P.L.247-1995, SEC.10. Amended by P.L.199-2023, SEC.35.
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