There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 8 Investment Securities
355.8.102 Definitions.
Download pdfperson to hold, transfer, or deal with the financial asset; (b) "Bearer form," as applied to a certificated security, means a form in which the security is payable to the bearer of the security certificate according to its
terms but not by reason of an indorsement; (c) "Broker" means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity; (d) "Certificated security" means a security that is represented by a certificate;
(e) "Clearing corporation" means: 1. A person that is registered as a "clearing agency" under the federal
securities laws; 2. A federal reserve bank; or 3. Any other person that provides clearance or settlement services with
respect to financial assets that would require it to register as a clearing
agency under the federal securities laws but for an exclusion or
exemption from the registration requirement, if its activities as a clearing
corporation, including promulgation of rules, are subject to regulation by
a federal or state governmental authority; (f) "Communicate" means to: 1. Send a signed writing; or 2. Transmit information by any mechanism agreed upon by the persons
transmitting and receiving the information; (g) "Entitlement holder" means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities
intermediary. If a person acquires a security entitlement by virtue of KRS
355.8-501(2)(b) or (c), that person is the entitlement holder; (h) "Entitlement order" means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the
entitlement holder has a security entitlement; (i) "Financial asset," except as otherwise provided in KRS 355.8-103, means: 1. A security; 2. An obligation of a person or a share, participation, or other interest in a
person or in property or an enterprise of a person, which is, or is of a
type, dealt in or traded on financial markets, or which is recognized in
any area in which it is issued or dealt in as a medium for investment; or 3. Any property that is held by a securities intermediary for another person
in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset
under this article. As context requires, the term means either the interest itself or the means by
which a person's claim to it is evidenced, including a certificated or
uncertificated security, a security certificate, or a security entitlement; (j) (Reserved)
(k) "Indorsement" means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for
the purpose of assigning, transferring, or redeeming the security or granting a
power to assign, transfer, or redeem it; (l) "Instruction" means a notification communicated to the issuer of an uncertificated security which directs that the transfer of the security be
registered or that the security be redeemed; (m) "Registered form," as applied to a certificated security, means a form in which:
1. The security certificate specifies a person entitled to the security; and 2. A transfer of the security may be registered upon books maintained for
that purpose by or on behalf of the issuer, or the security certificate so
states; (n) "Securities intermediary" means: 1. A clearing corporation; or 2. A person, including a bank or broker, that in the ordinary course of its
business maintains securities accounts for others and is acting in that
capacity; (o) "Security," except as otherwise provided in KRS 355.8-103, means an obligation of an issuer or a share, participation, or other interest in an issuer or
in property or an enterprise of an issuer:
1. Which is represented by a security certificate in bearer or registered
form, or the transfer of which may be registered upon books maintained
for that purpose by or on behalf of the issuer; 2. Which is one of a class or series or by its terms is divisible into a class
or series of shares, participations, interests, or obligations; and 3. Which:
a. Is, or is of a type, dealt in or traded on securities exchanges or
securities markets; or b. Is a medium for investment and by its terms expressly provides
that it is a security governed by this article; (p) "Security certificate" means a certificate representing a security;
(q) "Security entitlement" means the rights and property interest of an entitlement holder with respect to a financial asset specified in Part 5 of this article; and (r) "Uncertificated security" means a security that is not represented by a certificate. (2) Other definitions applying to this article and the sections in which they appear are: (a) "Appropriate person." KRS 355.8-107;
(b) "Control." KRS 355.8-106;
(c) "Delivery." KRS 355.8-301;
(d) "Investment company security." KRS 355.8-103;
(e) "Issuer." KRS 355.8-201;
(f) "Overissue." KRS 355.8-210;
(g) "Protected purchaser." KRS 355.8-303; and
(h) "Securities account." KRS 355.8-501. (3) In addition, Article 1 of this chapter contains general definitions and principles of construction and interpretation applicable throughout this article. (4) The characterization of a person, business, or transaction for purposes of this article does not determine the characterization of the person, business, or transaction for
purposes of any other law, regulation, or rule. Effective: July 12, 2006
History: Amended 2006 Ky. Acts ch. 242, sec. 56, effective July 12, 2006. -- Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 115, effective January 1, 1997. --
Amended 1986 Ky. Acts ch. 118, sec. 10, effective July 1, 1987. -- Amended 1972
Ky. Acts ch. 314, sec. 1 -- Amended 1964 Ky. Acts ch. 130, sec. 15, effective July 1,
1964. -- Created 1958 Ky. Acts ch. 77, sec. 8-102.
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