# Tex. Business & Commerce Code § 8.103: RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS

> Texas · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.103

## Section

- **Citation:** Tex. Business & Commerce Code § 8.103
- **Heading:** RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS
- **Jurisdiction:** Texas
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** TX Code / Code bc / Chapter 8 / Section 8.103

## Text

(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.

## Nearby sections

- [Tex. Business & Commerce Code § 8.101 § 8.101. SHORT TITLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.101.md)
- [Tex. Business & Commerce Code § 8.102 § 8.102. DEFINITIONS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.102.md)
- [Tex. Business & Commerce Code § 8.103 § 8.103. RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.103.md)
- [Tex. Business & Commerce Code § 8.104 § 8.104. ACQUISITION OF SECURITY OR FINANCIAL ASSET OR INTEREST THEREIN.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.104.md)
- [Tex. Business & Commerce Code § 8.105 § 8.105. NOTICE OF ADVERSE CLAIM.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.105.md)
- [Tex. Business & Commerce Code § 8.106 § 8.106. CONTROL.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.106.md)
- [Tex. Business & Commerce Code § 8.107 § 8.107. WHETHER INDORSEMENT, INSTRUCTION, OR ENTITLEMENT ORDER IS EFFECTIVE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.107.md)
- [Tex. Business & Commerce Code § 8.108 § 8.108. WARRANTIES IN DIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.108.md)
- [Tex. Business & Commerce Code § 8.109 § 8.109. WARRANTIES IN INDIRECT HOLDING.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.109.md)
- [Tex. Business & Commerce Code § 8.110 § 8.110. APPLICABILITY; CHOICE OF LAW.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.110.md)
- [Tex. Business & Commerce Code § 8.111 § 8.111. CLEARING CORPORATION RULES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.111.md)
- [Tex. Business & Commerce Code § 8.112 § 8.112. CREDITOR'S LEGAL PROCESS.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.112.md)
- [Tex. Business & Commerce Code § 8.113 § 8.113. STATUTE OF FRAUDS INAPPLICABLE.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.113.md)
- [Tex. Business & Commerce Code § 8.114 § 8.114. EVIDENTIARY RULES CONCERNING CERTIFICATED SECURITIES.](https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.114.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_TX_Cbc_C8_S8.103. Check the current official text before relying on it. Not legal advice.