Current through Register Vol. 49, No. 8, August 19, 2024
Section 336.8-103 - 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 a general intangible and is not a security or a financial asset, except as follows: (1) An interest in a partnership or limited liability company is a security and is not a general intangible if it is dealt in or traded on a securities exchange or in a securities market, its terms expressly provide that it is a security governed by this article, or it is an investment company security.(2) An interest in a partnership or limited liability company is a financial asset and is not a general intangible 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 336.9-102(a)(15), is not a security or a financial asset.(g) A document of title is not a financial asset unless section 336.8-102(a)(9)(iii) applies.(h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless section 336.8-102(a)(9)(iii) applies.1995 c 194 art 1 s 3; 1996 c 361 s 53; 2000 c 399 art 2 s 15; 2004 c 162 art 5 s 17
Amended by 2024 Minn. Laws, ch. 93,s 8-2, eff. 8/1/2024.