2011 Kentucky Revised Statutes Article 8 Investment Securities 355.8.103 Rules for determining whether certain obligations and interests are securities or financial assets.
KY Rev Stat § 355.8.103 (1996 through Reg Sess) What's This?
355.8-103 Rules for determining whether certain obligations and interests are
securities or financial assets.
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A share or similar equity interest issued by a corporation, business trust, joint stock
company, or similar entity is a security.
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.
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.
A writing that is a security certificate is governed by this article and not by Article 3
of this chapter, even though it also meets the requirements of that article. However,
a negotiable instrument governed by Article 3 of this chapter is a financial asset if it
is held in a securities account.
An option or similar obligation issued by a clearing corporation to its participants is
not a security, but is a financial asset.
A commodity contract, as defined in KRS 355.9-102(1)(o), is not a security or a
financial asset.
Effective: July 1, 2001
History: Amended 2000 Ky. Acts ch. 408, sec. 169, effective July 1, 2001. -- Repealed
and reenacted 1996 Ky. Acts ch. 130, sec. 116, effective January 1, 1997. -Amended 1986 Ky. Acts ch. 118, sec. 11, effective July 1, 1987. -- Created 1958 Ky.
Acts ch. 77, sec. 8-103, effective July 1, 1960.
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