Section 57A-8-103 - Rules for determining whether certain obligations and interests are securities or financial assetsIn this chapter:
(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 chapter, 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 chapter and not by chapter 57A-3, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by chapter 57A-3 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 § 57A-9-102(a)(15), is not a security or a financial asset;(g) A document of title, as defined in subdivision 57A-1-201(16), is not a financial asset unless § 57A-8-102(a)(9)(iii) applies.(h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless § 57A-8-102(a)(9)(iii) applies. SL 1998, ch 284, §1; SL 2000, ch 231, §14; SL 2009, ch 254, §823; SL 2024, ch 198, §39.Amended by S.L. 2024, ch. 198,s. 39, eff. 7/1/2024.