§ 6A-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 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 § 6A-9-102(a)(15), is not a security or a financial asset.
(g) A document of title is not a financial asset unless subsection 6A-8-102(a)(9)(iii) applies.
History of Section.P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5; P.L. 2006, ch. 112, § 7; P.L. 2006, ch. 135, § 7.
Structure Rhode Island General Laws
Title 6A - Uniform Commercial Code
Chapter 6A-8 - Investment Securities
Part 1 - Short Title and General Matters
Section 6A-8-101. - Short title.
Section 6A-8-102. - Definitions.
Section 6A-8-104. - Acquisition of security or financial asset or interest therein.
Section 6A-8-105. - Notice of adverse claim.
Section 6A-8-107. - Whether indorsement, instruction, or entitlement order is effective.
Section 6A-8-108. - Warranties in direct holding.
Section 6A-8-109. - Warranties in indirect holding.
Section 6A-8-110. - Applicability — Choice of law.
Section 6A-8-111. - Clearing corporation rules.
Section 6A-8-112. - Creditor’s legal process.
Section 6A-8-113. - Statute of frauds inapplicable.
Section 6A-8-114. - Evidentiary rules concerning certificated securities.
Section 6A-8-115. - Securities intermediary and others not liable to adverse claimant.
Section 6A-8-116. - Securities intermediary as purchaser for value.