{"data":{"id":"us-ky/krs-355.8-102","jurisdiction":"us-ky","citation":"KRS 355.8-102","heading":"Definitions and index of definitions.","body":"(1) In this article:\n(a) \"Adverse claim\" means a claim that a claimant has a property interest in a\nfinancial asset and that it is a violation of the rights of the claimant for another\nperson to hold, transfer, or deal with the financial asset;\n(b) \"Bearer form,\" as applied to a certificated security, means a form in which the\nsecurity is payable to the bearer of the security certificate according to its\nterms but not by reason of an indorsement;\n(c) \"Broker\" means a person defined as a broker or dealer under the federal\nsecurities laws, but without excluding a bank acting in that capacity;\n(d) \"Certificated security\" means a security that is represented by a certificate;\n(e) \"Clearing corporation\" means:\n1. A person that is registered as a \"clearing agency\" under the federal\nsecurities laws;\n2. A federal reserve bank; or\n3. Any other person that provides clearance or settlement services with\nrespect to financial assets that would require it to register as a clearing\nagency under the federal securities laws but for an exclusion or\nexemption from the registration requirement, i f its activities as a\nclearing corporation, including promulgation of rules, are subject to\nregulation by a federal or state governmental authority;\n(f) \"Communicate\" means to:\n1. Send a signed record; or\n2. Transmit information by any mechanism agreed upo n by the persons\ntransmitting and receiving the information;\n(g) 1. \"Entitlement holder\" means a person identified in the records of a\nsecurities intermediary as the person having a security entitlement\nagainst the securities intermediary.\n2. If a person a cquires a security entitlement by virtue of KRS 355.8 -\n501(2)(b) or (c), that person is the entitlement holder;\n(h) \"Entitlement order\" means a notification communicated to a securities\nintermediary directing transfer or redemption of a financial asset to w hich the\nentitlement holder has a security entitlement;\n(i) 1. \"Financial asset,\" except as otherwise provided in KRS 355.8 -103,\nmeans:\na. A security;\nb. An obligation of a person or a share, participation, or other interest\nin a person or in property or a n enterprise of a person, which is, or\nis of a type, dealt in or traded on financial markets, or which is\nrecognized in any area in which it is issued or dealt in as a medium\nfor investment; or\nc. Any property that is held by a securities intermediary for another\nperson in a securities account if the securities intermediary has\nexpressly agreed with the other person that the property is to be\ntreated as a financial asset under this article.\n2. As context requires, the term means either the interest itself o r the\nmeans by which a person's claim to it is evidenced, including a\ncertificated or uncertificated security, a security certificate, or a security\nentitlement;\n(j) Reserved;\n(k) \"Indorsement\" means a signature that alone or accompanied by other words is\nmade on a security certificate in registered form or on a separate document for\nthe purpose of assigning, transferring, or redeeming the security or granting a\npower to assign, transfer, or redeem it;\n(l) \"Instruction\" means a notification communicated to the issuer of an\nuncertificated security which directs that the transfer of the security be\nregistered or that the security be redeemed;\n(m) \"Registered form,\" as applied to a certificated security, means a form in\nwhich:\n1. The security certificate specifies a person entitled to the security; and\n2. A transfer of the security may be registered upon books maintained for\nthat purpose by or on behalf of the issuer, or the security certificate so\nstates;\n(n) \"Securities intermediary\" means:\n1. A clearing corporation; or\n2. A person, including a bank or broker, that in the ordinary course of its\nbusiness maintains securities accounts for others and is acting in that\ncapacity;\n(o) \"Security,\" except as otherwise provided in KRS 355.8 -103, means an\nobligation of an issuer or a share, participation, or other interest in an issuer or\nin property or an enterprise of an issuer:\n1. Which is represented by a security certificate in bearer or registered\nform, or the transfer of which may be registered upon books maintaine d\nfor that purpose by or on behalf of the issuer;\n2. Which is one of a class or series or by its terms is divisible into a class\nor series of shares, participations, interests, or obligations; and\n3. Which:\na. Is, or is of a type, dealt in or traded on sec urities exchanges or\nsecurities markets; or\nb. Is a medium for investment and by its terms expressly provides\nthat it is a security governed by this article;\n(p) \"Security certificate\" means a certificate representing a security;\n(q) \"Security entitlement\" means the rights and property interest of an e ntitlement\nholder with respect to a financial asset specified in Part 5 of this article; and\n(r) \"Uncertificated security\" means a security that is not represented by a\ncertificate.\n(2) The following definitions in this article and other articles of this c hapter apply to\nthis article:\n(a) \"Appropriate person.\" KRS 355.8-107;\n(b) \"Control.\" KRS 355.8-106;\n(c) \"Controllable account.\" KRS 355.9-102;\n(d) \"Controllable electronic record.\" KRS 355.12-102;\n(e) \"Controllable payment intangible.\" KRS 355.9-102;\n(f) \"Delivery.\" KRS 355.8-301;\n(g) \"Investment company security.\" KRS 355.8-103;\n(h) \"Issuer.\" KRS 355.8-201;\n(i) \"Overissue.\" KRS 355.8-210;\n(j) \"Protected purchaser.\" KRS 355.8-303; and\n(k) \"Securities account.\" KRS 355.8-501.\n(3) In addition, Article 1 of t his chapter contains general definitions and principles of\nconstruction and interpretation applicable throughout this article.\n(4) The characterization of a person, business, or transaction for purposes of this article\ndoes not determine the characterizati on of the person, business, or transaction for\npurposes of any other law, regulation, or rule.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=55663","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:46Z","sha256":"b9f539532bfd0f73191bff7ba7f3918b343e484c64efd810c72f01047173ed16","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.8-101","next":"us-ky/krs-355.8-103"},"notice":"GroundRules: Original legal text. Not legal advice."}