Section 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 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.Okla. Stat. tit. 12A, § 8-103
Amended by Laws 2024 , c. 13, s. 38, eff. 11/1/2024.Added by Laws 1961, SB 36, p. 151, § 8-103; Amended by Laws 1984, HB 1800, c. 76, § 4, eff. 11/1/1984; Amended by Laws 1995, SB 522, c. 242, § 3, eff. 2/1/1996; Amended by Laws 2000 , SB 1519, c. 371, § 160, eff. 7/1/2001; Amended by Laws 2005 , HB 2035, c. 140, § 58, eff. 1/1/2006.Oklahoma Code Comment
This Section provides rules for determining whether a particular asset or interest is a security or some other form of financial asset. An example is a partnership interest, which might be a "security" or some other form of "financial asset" or perhaps neither one, depending on whether it is traded or held in a securities account. Thus, Section 8-103 may either expand or contract the scope of Section 8-102 . As explained in sub section 8-103(f), a commodity contract, as defined in Section 9-115 , is not treated as either a security or a financial asset.
Prior Statutory Provisions:
None.