(a)In IC 26-1-8.1:
(1)"Adverse claim" means a claim that a claimant has a property
interest in a financial asset and that it is a violation of the rights
of the claimant for another person to hold, transfer, or deal with
the financial asset.
(2)"Bearer form", as applied to a certificated security, means a
form in which the security is payable to the bearer of the security
certificate according to its terms but not by reason of an
endorsement.
(3)"Broker" means a person defined as a broker or dealer under
the federal securities laws, but without excluding a bank acting in
that capacity.
(4)"Certificated security" means a security that is represented by
a certificate.
(5)"Clearing corporation" means:
(i)a person that is registered as a "clearing agency" under the
federal securities la
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(a) In IC 26-1-8.1:
(1) "Adverse claim" means a claim that a claimant has a property
interest in a financial asset and that it is a violation of the rights
of the claimant for another person to hold, transfer, or deal with
the financial asset.
(2) "Bearer form", as applied to a certificated security, means a
form in which the security is payable to the bearer of the security
certificate according to its terms but not by reason of an
endorsement.
(3) "Broker" means a person defined as a broker or dealer under
the federal securities laws, but without excluding a bank acting in
that capacity.
(4) "Certificated security" means a security that is represented by
a certificate.
(5) "Clearing corporation" means:
(i) a person that is registered as a "clearing agency" under the
federal securities laws;
(ii) a federal reserve bank; or
(iii) any other person that provides clearance or settlement
services with respect to financial assets that would require it to
register as a clearing agency under the federal securities laws
but for an exclusion or exemption from the registration
requirement, if its activities as a clearing corporation, including
promulgation of rules, are subject to regulation by a federal or
state governmental authority.
(6) "Communicate" means to:
(i) send a signed record; or
(ii) transmit information by any mechanism agreed upon by the
persons transmitting and receiving the information.
(7) "Entitlement holder" means a person identified in the records
of a securities intermediary as the person having a security
entitlement against the securities intermediary. If a person
acquires a security entitlement by virtue of IC 26-1-8.1-501(b)(2)
or IC 26-1-8.1-501(b)(3), that person is the entitlement holder.
(8) "Entitlement order" means a notification communicated to a
securities intermediary directing transfer or redemption of a
financial asset to which the entitlement holder has a security
entitlement.
(9) "Financial asset", except as otherwise provided in IC 26-1-8.1-103, means:
(i) a security;
(ii) an obligation of a person or a share, participation, or other
interest in a person or in property or an enterprise of a person,
that is, or is of a type, dealt in or traded on financial markets, or
that is recognized in any area in which it is issued or dealt in as
a medium for investment; or
(iii) any property that is held by a securities intermediary for
another person in a securities account if the securities
intermediary has expressly agreed with the other person that the
property is to be treated as a financial asset under IC 26-1-8.1.
As context requires, the term means either the interest itself or the
means by which a person's claim to it is evidenced, including a
certificated or an uncertificated security, a security certificate, or
a security entitlement.
(10) "Good faith", for purposes of the obligation of good faith in
the performance or enforcement of contracts or duties within IC 26-1-8.1, means honesty in fact and the observance of reasonable
commercial standards of fair dealing.
(11) "Endorsement" means a signature that alone or accompanied
by other words is made on a security certificate in registered form
or on a separate document for the purpose of assigning,
transferring, or redeeming the security or granting a power to
assign, transfer, or redeem it.
(12) "Instruction" means a notification communicated to the
issuer of an uncertificated security which directs that the transfer
of the security be registered or that the security be redeemed.
(13) "Registered form", as applied to a certificated security,
means a form in which:
(i) the security certificate specifies a person entitled to the
security; and
(ii) a transfer of the security may be registered upon books
maintained for that purpose by or on behalf of the issuer, or the
security certificate so states.
(14) "Securities intermediary" means:
(i) a clearing corporation; or
(ii) a person, including a bank or broker, that in the ordinary
course of its business maintains securities accounts for others
and is acting in that capacity.
(15) "Security", except as otherwise provided in IC 26-1-8.1-103,
means an obligation of an issuer or a share, participation, or other
interest in an issuer or in property or an enterprise of an issuer:
(i) which is represented by a security certificate in bearer or
registered form, or the transfer of which may be registered upon
books maintained for that purpose by or on behalf of the issuer;
(ii) which is one (1) of a class or series or by its terms is
divisible into a class or series of shares, participations, interests,
or obligations; and
(iii) which:
(A) is, or is of a type, dealt in or traded on securities
exchanges or securities markets; or
(B) is a medium for investment and by its terms expressly
provides that it is a security governed by IC 26-1-8.1.
(16) "Security certificate" means a certificate representing a
security.
(17) "Security entitlement" means the rights and property interest
of an entitlement holder with respect to a financial asset specified
in IC 26-1-8.1-501 through IC 26-1-8.1-511.
(18) "Uncertificated security" means a security that is not
represented by a certificate.
(b) The following definitions in IC 26-1-8.1 and in IC 26-1 apply to
this article:
"Appropriate person". IC 26-1-8.1-107.
"Control". IC 26-1-8.1-106.
"Controllable account". IC 26-1-9.1-102.
"Controllable electronic record". IC 26-1-12-102.
"Controllable payment intangible". IC 26-1-9.1-102.
"Delivery". IC 26-1-8.1-301.
"Investment company security". IC 26-1-8.1-103.
"Issuer". IC 26-1-8.1-201.
"Overissue". IC 26-1-8.1-210.
"Protected purchaser". IC 26-1-8.1-303.
"Securities account". IC 26-1-8.1-501.
(c) In addition, IC 26-1-1 contains general definitions and principles
of construction and interpretation applicable throughout IC 26-1-8.1.
(d) The characterization of a person, business, or transaction for
purposes of IC 26-1-8.1 does not determine the characterization of the
person, business, or transaction for purposes of any other law,
regulation, or rule.