S.C. Code Ann. § 36-8-103
Rules for determining whether certain obligations and interests are securities or financial assets
Effective Oct 1, 20141962 Code Section 10.8-103; 1966 (54) 2716; 1991 Act No. 161, Section 1; 2001 Act No. 67, Section 5; 2014 Act No. 213 (S.343), Section 32, eff October 1, 2014. "Clearing corporation" Section 8-102(a)(5) "Commodity contract" Section 9-102(a)915) "Financial asset" Section 8-102(a)(9) "Security" Section 8-102(a)(15) "Security certificate" Section 8-102(a)(16)
- (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, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by Chapter 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 36-9-102(a)(15), is not a security or a financial asset.
- (g) A document of title is not a financial asset unless Section 36-8-102(a)(9)(iii) applies.
HISTORY: 1962 Code Section 10.8-103; 1966 (54) 2716; 1991 Act No. 161, Section 1; 2001 Act No. 67, Section 5; 2014 Act No. 213 (S.343), Section 32, eff October 1, 2014. "Clearing corporation" Section 8-102(a)(5) "Commodity contract" Section 9-102(a)915) "Financial asset" Section 8-102(a)(9) "Security" Section 8-102(a)(15) "Security certificate" Section 8-102(a)(16)