440.8103 Share or equity interest as security; "investment company security" defined; interest in partnership or limited liability company as security or financial asset;
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/mi/chapter-440/440-8103A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
440.8103 Share or equity interest as security; "investment company security" defined; interest in partnership or limited liability company as security or financial asset; writing; option or similar obligation issued by clearing corporation as financial asset; commodity contract; financial asset.
Sec. 8103.
(1)A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.
(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.
(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. However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.
(4)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.
(5)An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.
(6)A commodity contract, as defined in section 9102(1)(o), is not a security or a financial asset.
(7)A document of title is not a financial asset unless section 8102(1)(i)(iii) applies.
History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1987, Act 16, Imd. Eff. Apr. 24, 1987 ;-- Am. 1998, Act 278 , Imd. Eff. July 27, 1998 ;-- Am. 2000, Act 348 , Eff. July 1, 2001 ;-- Am. 2012, Act 87 , Eff. July 1, 2013