{"data":{"id":"us-al/ala.-code-7-8-103","jurisdiction":"us-al","citation":"Ala. Code § 7-8-103","heading":"Rules for Determining Whether Certain Obligations and Interests Are Securities or Financial Assets.","body":"(a) A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.\n(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.\n(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 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.\n(d) 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.\n(e) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.\n(f) A commodity contract, as defined in Section 7-9A-102(a)(15), is not a security or a financial asset.\n(g) A document of title is not a financial asset unless Section 7-8-102(a)(9)(iii) applies.\n(h) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless Section 7-8-102(a)(9)(iii) applies.","path":["Title 7 Commercial Code.","Article 8 Investment Securities.","Part 1 Short Title and General Matters."],"source_url":"https://alison.legislature.state.al.us/code-of-alabama?section=7-8-103","current_through":"Act 2026-611","vintage":"","retrieved_at":"2026-09-03T14:01:52Z","sha256":"03aa5753041734410c1178ab0973db187082ecabf7429942bbb94febb7bfe9b1","source_id":"us-al","stale":false,"prev":"us-al/ala.-code-7-8-102","next":"us-al/ala.-code-7-8-104"},"notice":"GroundRules: Original legal text. Not legal advice."}