(a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.\n(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 or Puerto Rico 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.\n(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 §§ 1701-1911 of this title, 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.\n(d) A writing that is a security certificate is governed by §§ 1701-1911 of this title and not by §§ tnership or limited liability company is a financial asset if it is held in a securities account.\n(d) A writing that is a security certificate is governed by §§ 1701-1911 of this title and not by §§ 501-755 of this title, even though it also meets the requirements of those sections. However, a negotiable instrument governed by §§ 501-755 of this title is a financial asset if it is held in a securities account.\n(e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.\n(f) A commodity contract, as defined in § 2212(a)(15) of this title, is not a security or a financial asset.\nHistory —Aug. 17, 1995, No. 208, added as § 8-103 on Sept. 19, 1996, No. 241, § 12; Jan. 17, 2012, No. 21, § 16, eff. 1 year after Jan. 17, 2012.
Puerto Rico Legal Code