Tennessee § 47-8-103 - Rules for determining whether certain obligations and interests are securities or financial assets.

§ 47-8-103. Rules for determining whether certain obligations and interests are securities or financial assets.

A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security. 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. 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. A writing that is a security certificate is governed by this chapter and not by chapter 3 of this title, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by chapter 3 of this title is a financial asset if it is held in a securities account. An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset. A commodity contract, as defined in § 47-9-102(a)(15), is not a security or a financial asset. A document of title is not a financial asset unless § 47-8-102(a)(9)(iii) applies. Acts 1997, ch. 79, § 1; 2000, ch. 846, § 16; 2008, ch. 814, § 22. Amendments. The 2008 amendment added (g). Effective Dates. Acts 2008, ch. 814, § 40. July 1, 2008. Cited: Wakefield v. Crawley, 6 S.W.3d 442, 1999 Tenn. LEXIS 576 (Tenn. 1999).