Rules for Determining Whether Certain Obligations and Interests Are Securities or Financial Assets.

1. (a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.
2. (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.
3. (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 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.
4. (d) A writing that is a security certificate is governed by this article and not by Article 3 of this code, even though it also meets the requirements of that article. However, a negotiable instrument governed by Article 3 of this code is a financial asset if it is held in a securities account.
5. (e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.
6. (f) A commodity contract, as defined in paragraph (15) of subsection (a) of Section 1-9-102 of this title, is not a security or a financial asset.
7. (g) A document of title is not a financial asset unless subparagraph (iii) of paragraph (9) of subsection (a) of Section 8-102 of this title applies.

8. (h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless subparagraph (iii) of paragraph 9 of subsection (a) of Section 8-102 of this title applies.

   Oklahoma Code Comment

   This Section provides rules for determining whether a particular asset or interest is a security or some other form of financial asset. An example is a partnership interest, which might be a "security" or some other form of "financial asset" or perhaps neither one, depending on whether it is traded or held in a securities account. Thus, Section 8-103 may either expand or contract the scope of Section 8-102. As explained in subsection 8-103(f), a commodity contract, as defined in Section 9-115, is not treated as either a security or a financial asset.

   Prior Statutory Provisions:

   None.

Laws 1961, SB 36, p. 151, § 8-103; Amended by Laws 1984, HB 1800, c. 76, § 4, eff. November 1, 1984; Amended by Laws 1995, SB 522, c. 242, § 3, eff. February 1, 1996; Amended by Laws 2000, SB 1519, c. 371, § 160, eff. July 1, 2001 (superseded document available); Amended by Laws 2005, HB 2035, c. 140, § 58, eff. January 1, 2006 (superseded document available); Amended by Laws 2024, HB 2776, c. 13, § 38, eff. November 1, 2024 (superseded document available).