§ 51-23-02 — Definitions

When used in this chapter, unless the context or subject matter otherwise requires:
1. "Board of trade" means any person or group of persons engaged in buying or selling
any commodity or receiving any commodity for sale on consignment, whether the
person or group of persons is characterized as a board of trade, exchange, or other
form of marketplace.
2. "CFTC rule" means any rule, regulation, or order of the commodity futures trading
commission in effect on April 7, 1989.
3. "Commissioner" means the insurance commissioner.
4. "Commodity" means, except as otherwise specified by the commissioner by rule or
order, any agricultural, grain, or livestock product or byproduct; any metal or mineral,
including a precious metal; any gem or gemstone, whether characterized as precious,
semiprecious, or otherwise; any fuel whether liquid, gaseous, or otherwise; any foreign
currency; and all other goods, articles, products, or items of any kind. The term
commodity does not include:
a. A numismatic coin with a fair market value at least fifteen percent higher than the
value of the metal it contains;
b. Real property or any timber, agricultural, or livestock product grown or raised on
real property and offered or sold by the owner or lessee of the real property; or
c. Any work of art offered or sold by art dealers, at public auction or offered or sold
through a private sale by the owner.
5. "Commodity contract" means any account, agreement, or contract for the purchase or
sale, primarily for speculation or investment purposes and not for use or consumption
by the offeree or purchaser, of one or more commodities, whether for immediate or
subsequent delivery or whether delivery is intended by the parties, and whether
characterized as a cash contract, deferred shipment or deferred delivery contract,
forward contract, futures contract, installment or margin contract, leverage contract, or
otherwise. Any commodity contract offered or sold must, in the absence of evidence to
the contrary, be presumed to be offered or sold for speculation or investment
purposes. A commodity contract may not include any contract or agreement which
requires, and under which the purchaser receives within twenty-eight calendar days
from the payment in good funds of any portion of the purchase price, physical delivery
of the total amount of each commodity to be purchased under the contract or
agreement.
6. "Commodity Exchange Act" means the act of Congress known as the Commodity
Exchange Act, as amended to April 7, 1989.
7. "Commodity futures trading commission" means the independent regulatory agency
established by Congress to administer the Commodity Exchange Act.
8. "Commodity merchant" means any of the following, as defined or described in the
Commodity Exchange Act or by CFTC rule:
a. Futures commission merchant.
b. Commodity pool operator.
c. Commodity trading advisor.
d. Introducing broker.
e. Leverage transaction merchant.
f. An associated person of any of the foregoing.
g. Floor broker.
h. Any other person other than a futures association required to register with the
commodity futures trading commission.

9. "Commodity option" means any account, agreement, or contract giving a party thereto
the right but not the obligation to purchase or sell one or more commodities or one or
more commodity contracts, whether characterized as an option, privilege, indemnity,
bid, offer, put, call, advance guaranty, decline guaranty or otherwise, but does not
include an option traded on a national securities exchange registered with the United
States securities and exchange commission.
10. "Financial institution" means a bank, savings institution, or trust company organized
under, or supervised under, the laws of the United States or of any state.
11. "Offer" includes every offer to sell, offer to purchase, or offer to enter into a commodity
contract or commodity option.
12. "Person" means an individual, a corporation, a limited liability company, a partnership,
an association, a joint-stock company, a trust in which the interests of the beneficiaries
are evidenced by a security, an unincorporated organization, a government, or a
political subdivision of a government, but does not include a contract market
designated by the commodity futures trading commission or any clearinghouse thereof
or a national securities exchange registered with the securities and exchange
commission or any employee, officer, or director of such contract market,
clearinghouse, or exchange acting solely in that capacity.
13. "Precious metal" means the following in either coin, bullion, or other form: silver, gold,
platinum, palladium, copper, and such other items as the commissioner may specify by
rule or order.
14. "Sale" or "sell" includes every sale, contract of sale, contract to sell, or disposition, for
value.