South Dakota Codified Laws
Chapter 08 - Investment Securities
Section 57A-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets.

57A-8-103. Rules for determining whether certain obligations and interests are securities or financial assets.
In this chapter:
(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 57A-3, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by chapter 57A-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 §57A-9-102(a)(15), is not a security or a financial asset;
(g) A document of title, as defined in subdivision 57A-1-201(16), is not a financial asset unless §57A-8-102(a)(9)(iii) applies.

Source: SL 1998, ch 284, §1; SL 2000, ch 231, §14; SL 2009, ch 254, §823.

Structure South Dakota Codified Laws

South Dakota Codified Laws

Title 57A - Uniform Commercial Code

Chapter 08 - Investment Securities

Section 57A-8-101 - Short title.

Section 57A-8-102 - Definitions.

Section 57A-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets.

Section 57A-8-104 - Acquisition of security or financial asset or interest therein.

Section 57A-8-105 - Notice of adverse claim.

Section 57A-8-106 - Control.

Section 57A-8-107 - Whether endorsement, instruction, or entitlement order is effective.

Section 57A-8-108 - Warranties in direct holding.

Section 57A-8-109 - Warranties in indirect holding.

Section 57A-8-110 - Applicability--Choice of law.

Section 57A-8-111 - Clearing corporation rules.

Section 57A-8-112 - Creditor's legal process.

Section 57A-8-113 - Statute of frauds inapplicable.

Section 57A-8-114 - Evidentiary rules concerning certificated securities.

Section 57A-8-115 - Securities intermediary and others not liable to adverse claimant.

Section 57A-8-116 - Securities intermediary as purchaser for value.

Section 57A-8-201 - Issuer.

Section 57A-8-202 - Issuer's responsibility and defenses; notice of defect or defense.

Section 57A-8-203 - Staleness as notice of defect or defense.

Section 57A-8-204 - Effect of issuer's restriction on transfer.

Section 57A-8-205 - Effect of unauthorized signature on security certificate.

Section 57A-8-206 - Completion or alteration of security certificate.

Section 57A-8-207 - Rights and duties of issuer with respect to registered owners.

Section 57A-8-208 - Effect of signature of authenticating trustee, registrar, or transfer agent.

Section 57A-8-209 - Issuer's lien.

Section 57A-8-210 - Overissue.

Section 57A-8-301 - Delivery.

Section 57A-8-302 - Rights of purchaser.

Section 57A-8-303 - Protected purchaser.

Section 57A-8-304 - Indorsement.

Section 57A-8-305 - Instruction.

Section 57A-8-306 - Effect of guaranteeing signature, indorsement, or instruction.

Section 57A-8-307 - Purchaser's right to requisites for registration of transfer.

Section 57A-8-401 - Duty of issuer to register transfer.

Section 57A-8-402 - Assurance that indorsement or instruction is effective.

Section 57A-8-403 - Demand that issuer not register transfer.

Section 57A-8-404 - Wrongful registration.

Section 57A-8-405 - Replacement of lost, destroyed, or wrongfully taken security certificate.

Section 57A-8-406 - Obligation to notify issuer of lost, destroyed, or wrongfully taken security certificate.

Section 57A-8-407 - Authenticating trustee, transfer agent, and registrar.

Section 57A-8-501 - Securities account; acquisition of security entitlement from securities intermediary.

Section 57A-8-502 - Assertion of adverse claim against entitlement holder.

Section 57A-8-503 - Property interest of entitlement holder in financial asset held by securities intermediary.

Section 57A-8-504 - Duty of securities intermediary to maintain financial asset.

Section 57A-8-505 - Duty of securities intermediary with respect to payments and distributions.

Section 57A-8-506 - Duty of securities intermediary to exercise rights as directed by entitlement holder.

Section 57A-8-507 - Duty of securities intermediary to comply with entitlement order.

Section 57A-8-508 - Duty of securities intermediary to change entitlement holder's position to other form of security holding.

Section 57A-8-509 - Specification of duties of securities intermediary by other statute or regulation; Manner of performance of duties of securities intermediary and exercise of rights of entitlement holder.

Section 57A-8-510 - Rights of purchaser of security entitlement from entitlement holder.

Section 57A-8-511 - Priority among security interests and entitlement holders.

Section 57A-8-603 - Savings clause.