{"data":{"id":"us-tx/tex.-business-commerce-code-8.103","jurisdiction":"us-tx","citation":"Tex. Business \u0026 Commerce Code § 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 chapter, 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 chapter and not by Chapter 3, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by Chapter 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 9.102(a)(15), is not a security or a financial asset.\n(g) A document of title, as defined in Section 1.201(b)(16), is not a financial asset unless Section 8.102(a)(9)(C) applies.\nAmended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995; Acts 1999, 76th Leg., ch. 414, Sec. 2.26, eff. July 1, 2001.\nAmended by:\nActs 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 18, eff. September 1, 2005.","path":["BUSINESS AND COMMERCE CODE","TITLE 1. UNIFORM COMMERCIAL CODE","CHAPTER 8. INVESTMENT SECURITIES","SUBCHAPTER A. SHORT TITLE AND GENERAL MATTERS"],"source_url":"https://statutes.capitol.texas.gov/Docs/BC/htm/BC.8.htm#8.103","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:56Z","sha256":"ee3986631bdbe47e3dfafdd0fa020ebcd5cf3f92f8d922167793f26c247db7ba","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-commerce-code-8.102","next":"us-tx/tex.-business-commerce-code-8.104"},"notice":"GroundRules: Original legal text. Not legal advice."}