Section 8-1103 - [Effective 7/1/2025] 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. [1997, c. 429, Pt. B, §2(NEW).]
(2). 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. [1997, c. 429, Pt. B, §2(NEW).]
(3). 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. An interest in a partnership or limited liability company is a financial asset if it is held in a securities account. [1997, c. 429, Pt. B, §2(NEW).]
(4). A writing that is a security certificate is governed by this Article and not by Article 3-A, even though it also meets the requirements of that Article. A negotiable instrument governed by Article 3-A is a financial asset if it is held in a securities account. [1997, c. 429, Pt. B, §2(NEW).]
(5). An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset. [1997, c. 429, Pt. B, §2(NEW).]
(6). A commodity contract, as defined in section 9-1102, subsection (15), is not a security or a financial asset. [1999, c. 699, Pt. B, §20(AMD); 1999, c. 699, Pt. B, §28(AFF).]
(7). A document of title is not a financial asset unless section 8-1102, subsection (1), paragraph (i), subparagraph (iii) applies. [2009, c. 324, Pt. B, §26(NEW); 2009, c. 324, Pt. B, §48(AFF).]
(8). A controllable account, controllable electronic record or controllable payment intangible is not a financial asset unless section 8-1102, subsection (1), paragraph (i), subparagraph (iii) applies.Amended by 2024, c. 669,§ A-59, eff. 7/1/2025.1997, c. 429, §B2 (NEW) . 1999, c. 699, §B20 (AMD) . 1999, c. 699, §B28 (AFF) . 2009, c. 324, Pt. B, §26 (AMD) . 2009, c. 324, Pt. B, §48 (AFF) .This section is set out more than once due to postponed, multiple, or conflicting amendments.