KRS 355.8-103: 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) (a) An "investment company security" is a security.

(b) "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.

(c) Investment company security does not include an insurance policy or

endowment policy or annuity contract issued by an insurance company.

(3) (a) An interest in a partnership or limited liability company is not a security

unless:

1. It is dealt in or traded on securities exchanges or in securities markets;

2. Its terms expressly provide that it is a security govern ed by this article;

or

3. It is an investment company security.

(b) However, an interest in a partnership or limited liability company is a

financial asset if it is held in a securities account.

(4) (a) A writing that is a security certificate is governed by this article and not by

Article 3 of this chapter, even though it also meets the requirements of that

article.

(b) However, a negotiable instrument governed by Article 3 of this chapter 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 KRS 355.9 -102(1), is not a security or a

financial asset.

(7) A document of title, as defined in KRS 355.1 -201(2), is not a financial asset unless

KRS 355.8-102(1)(i)1.c. applies.

(8) A controllable account, controllable electronic record, or controllable payment

intangible is not a financial asset unless KRS 355.8-102(1)(i)1.c. applies.