47-8103. Rules for determining whether certain
obligations and interests as 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 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.
D. A writing that is a security certificate is governed by this chapter and not by
chapter 3 of this title, even though it also meets the requirements of that
chapter. However, a negotiable instrument governed by chapter 3 of this title 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 47-9102, is not a security or a
financial asset.
G. A document of title is not a financial asset unless section 47-8102, subsection
A, paragraph 9, subdivision (c) applies.
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