104.8103 - Rules for determining whether certain obligations and interests are securities or financial assets. - Nevada Statutes

104.8103  Rules for determining whether certain obligations and interests are securities or financial assets.

      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. The term 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 Article, 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 Article and not by Article 3, even though it also meets the requirements of that Article. However, a negotiable instrument governed by Article 3 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 paragraph (o) of subsection 1 of NRS 104.9102, is not a security or a financial asset.

      7.  A document of title is not a financial asset unless subparagraph 3 of paragraph (j) of subsection 1 of NRS 104.8102 applies.

      (Added to NRS by 1997, 359; A 1999, 376; 2005, 859)