70A-8-102. Rules for determining whether certain obligations and interests are securities or financial assets.

333 words·~2 min read·/ut/title-70a/chapter-8/70a-8-102·

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 5/6/2026

(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, Uniform Commercial Code - Negotiable Instruments , even though it also meets the requirements of that chapter. However, a negotiable instrument governed by Chapter 3, Uniform Commercial Code - Negotiable Instruments , 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 70A-9a-102 , is not a security or a financial asset.

(7)A document of title is not a financial asset unless Subsection 70A-8-101(1)(i)(i)(C) applies.

(8)A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless Subsection 70A-8-101(1)(i)(i)(C) applies.

Amended by Chapter 322 , 2026 General Session