11 §8-1103. 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. [PL 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. [PL 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. [PL 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. [PL 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. [PL 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. [PL 1999, c. 699, Pt. B, §20 (AMD); PL 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. [PL 2009, c. 324, Pt. B, §26 (NEW); PL 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. [PL 2023, c. 669, Pt. A, §59 (NEW); PL 2023, c. 669, Pt. E, §1 (AFF).]