The Vermont Statutes Online
Uniform Commercial Code
8-103. Rules for determining whether certain obligations and interests are
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 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
(g) A document
of title is not a financial asset unless subdivision 8-102(a)(9)(iii) of this
title applies. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997;
amended 1999, No. 106 (Adj. Sess.), § 17, eff. July 1, 2001; 2015, No. 51, §
B.8, eff. June 3, 2015.)