§ 355-8-103

355.8 -103 Rules for determining whether certain obligations and interests are securities or financial assets. (1) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security . (2) (a) An 'investment company security' is a security. (b) 'Investment company security' means a share or similar equity interest issued by an entity that is registered as an investment company under the federal investment company laws, an interest in a unit investment trust that is so registered, or a face -amount certificate issued by a face -amount certificate company that is so registered. (c) Investment company security does not include an insurance policy or endowment policy or annuity contract issue d by an insurance company. (3) (a) An interest in a partnership or limited liability company is not a security unless: 1. It is dealt in or traded on securities exchanges or in securities markets; 2. Its terms expressly provide that it is a security govern ed by this article; or 3. It is an investment company security. (b) However, an interest in a partnership or limited liability company is a financial asset if it is held in a

it is a security govern ed by this article; or 3. It is an investment company security. (b) However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account. (4) (a) A writing that is a security certificate is governed by this article and not by Article 3 of this chapter, even though it also meets the requirements of that article. (b) However, a negotiable instrument governed by Article 3 of this chapter is a financial asset if it is held in a securities account. (5) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset. (6) A commodity contract, as defined in KRS 355.9 -102(1), is not a security or a financial asset. (7) A document of title, as defined in KRS 355.1 -201(2), is not a financial asset unless KRS 355.8 -102(1)(i)1.c. applies. (8) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless KRS 355.8 -102(1)(i)1.c. applies. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 40 , effective January 1, 2025. -- Amended 2012 Ky. Acts ch. 132, sec.

financial asset unless KRS 355.8 -102(1)(i)1.c. applies. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 40 , effective January 1, 2025. -- Amended 2012 Ky. Acts ch. 132, sec. 59, effective July 12, 2012. -- Amended 2000 Ky. Acts ch. 408, sec. 169, effective July 1, 2001. -- Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 116, effective January 1, 1997. -- Amended 1986 Ky. Acts ch. 118, sec. 11, effective July 1, 1987. -- Created 1958 Ky. Acts ch. 77, sec. 8 -103, effective July 1, 1960.