SECTIONS 8101-8116 - California Statutes

COMMERCIAL CODE

SECTION 8101-8116

8101. This division may be cited as Uniform Commercial
Code--Investment Securities.

8102. (a) In this division:
(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
indorsement.
(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 any of the following:
(A) A person that is registered as a "clearing agency" under the
federal securities laws.
(B) A federal reserve bank.
(C) 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 either:
(A) Send a signed writing.
(B) 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 paragraph (2) or (3) of
subdivision (b) of Section 8501, 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 Section
8103, means any of the following:
(A) A security.
(B) 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.
(C) 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 this division. 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 uncertificated security, a security certificate, or a security
entitlement.
(10)