§ 12a-8-103

Rules for Determining Whether Certain 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 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. Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.(c) An interest in a partnership or limited liability company is not a security unless it is dealt in or traded on securities exchanges or in securities markets, its terms expressly provide that it is a security governed by this article, or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.(d) A writing that is a security

or it is an investment company security. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.(d) A writing that is a security certificate is governed by this article and not by Article 3 of this code, even though it also meets the requirements of that article. However, a negotiable instrument governed by Article 3 of this code is a financial asset if it is held in a securities account.(e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.(f) A commodity contract, as defined in paragraph (15) of subsection (a) of Section 1-9-102 of this title, is not a security or a financial asset.(g) A document of title is not a financial asset unless subparagraph (iii) of paragraph (9) of subsection (a) of Section 8-102 of this title applies.(h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless subparagraph (iii) of paragraph 9 of subsection (a) of Section 8-102 of this title applies.Added by Laws 1961, p. 152 , § 8-103. Amended by Laws 1984, c. 76, § 4, eff. Nov.

t a financial asset unless subparagraph (iii) of paragraph 9 of subsection (a) of Section 8-102 of this title applies.Added by Laws 1961, p. 152 , § 8-103. Amended by Laws 1984, c. 76, § 4, eff. Nov. 1, 1984; Laws 1995, c. 242, § 3, eff. Feb. 1, 1996; Laws 2000, c. 371, § 160, eff. July 1, 2001; Laws 2005, c. 140, § 58, eff. Jan. 1, 2006; Laws 2024, c. 13, § 38, eff. Nov. 1, 2024.