§ 8-103. Rules for determining whether certain obligations and interests are securities or
(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 Section 9-102(a)(15), is not a security or
a financial asset.
(g) A document of title is not a financial asset unless Section 8-102(a)(9)(iii) applies.
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