South Carolina § 36-8-103 Rules for determining whether certain obligations and interests are securities or financial assets.

South Carolina Statutes

§ 36-8-103 — Rules for determining whether certain obligations and interests are securities or financial assets.

South Carolina § 36-8-103

Title 36COMMERCIAL CODE

Ch. 8COMMERCIAL CODE—INVESTMENT SECURITIES

This text of South Carolina § 36-8-103 (Rules for determining whether certain obligations and interests are securities or financial assets.) is published on Counsel Stack Legal Research, covering South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

S.C. Code Ann. § 36-8-103 (2026).

Text

(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

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(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.

Legislative History

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. Editor's Note 2014 Act No. 213, SECTION 51, provides as follows: "SECTION 51. This act becomes effective on October 1, 2014. It applies to transactions entered into and events occurring after that date." Effect of Amendment 2014 Act No. 213, SECTION 32, added subsection (g).