North Dakota § 41-08-03 (8-103) Rules for determining whether certain obligations and interests are securities or financial assets

North Dakota Statutes

§ 41-08-03 — (8-103) Rules for determining whether certain obligations and interests are securities or financial assets

North Dakota·Title 41 Uniform Commercial Code·Ch. 41-08 Investment Securities

securities or financial assets. In this chapter:

1.A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.

2.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.An interest in a partnership or limited liability company is not a security unless it is

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securities or financial assets.
In this chapter:
1. A share or similar equity interest issued by a corporation, business trust, joint stock
company, or similar entity is a security.
2. 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. 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.
4. A writing that is a security certificate is governed by this chapter and not by
chapter 41-03, even though it also meets the requirements of that chapter. However, a
negotiable instrument governed by chapter 41-03 is a financial asset if it is held in a
securities account.
5. An option or similar obligation issued by a clearing corporation to its participants is not
a security but is a financial asset.
6. A commodity contract, as defined in section 41-09-02, is not a security or a financial
asset.
7. A document of title is not a financial asset unless paragraph 3 of subdivision j of
subsection 1 of section 41-08-02 applies.
8. A controllable account, controllable electronic record, or controllable payment
intangible is not a financial asset unless paragraph 3 of subdivision j of subsection 1 of
section 41-08-02 applies.

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