§ 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, even though it also meets the requirements of that Article. However, a negotiable
instrument governed by Article 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 subdivision 9—102(a)(15), is not a security or
a financial asset.
(g) A document of title is not a financial asset unless subdivision 8—102(a)(9)(iii) of this title applies.
(h) A controllable account, controllable electronic record, or controllable payment intangible
is not a financial asset unless subdivision 8—102(a)(9)(iii) applies. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997; amended 1999, No. 106 (Adj. Sess.), § 17, eff. July 1, 2001; 2015, No. 51, § B.8, eff. June 3, 2015; 2025, No. 17, § 8, eff. July 1, 2025.)