§8-103. Rules for determining whether certain obligations and interests are securities or

Link to law: http://legislature.vermont.gov/statutes/section/09A/008/00103
Published: 2015

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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

008

:
Investment Securities











 

§

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

asset.

(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.)
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