30-8-113. Rules for determining whether certain obligations and interests are securities or financial assets.
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/mt/title-30/chapter-8/part-1/30-8-113·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
30-8-113 . 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.
(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 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.
(4)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.
(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 30-9A-102 , is not a security or a financial asset.
(7)A document of title, as defined in 30-1-201 (2)(p), is not a financial asset unless 30-8-112 (1)(i)(i)(C) applies.
(8)A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless 30-8-112 (1)(i)(i)(C) applies.