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 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 3, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by Chapter 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 Section 9.102(a)(15), is not a security or a financial asset.(g) A document of title, as defined in Section 1.201(b)(16), is not a financial asset unless Section 8.102(a)(9)(C) applies.Tex. Bus. and Comm. Code § 8.103
Amended By Acts 2005, 79th Leg., Ch. 122, Sec. 18, eff. 9/1/2005.Amended By Acts 1999, 76th Leg., ch. 414, Sec. 2.26, eff. 7/1/2001.Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. 9/1/1995