Maine Revised Statutes Title 11 Sec. 8-1103 – Rules for determining whether certain obligations and interests are securities or financial assets
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(1). A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security.
[PL 1997, c. 429, Pt. B, §2 (NEW).]
Terms Used In Maine Revised Statutes Title 11 Sec. 8-1103
- Annuity: A periodic (usually annual) payment of a fixed sum of money for either the life of the recipient or for a fixed number of years. A series of payments under a contract from an insurance company, a trust company, or an individual. Annuity payments are made at regular intervals over a period of more than one full year.
- Clearing corporation: means : (i) A person that is registered as a "clearing agency" under the federal securities laws;(ii) A federal reserve bank; or(iii) Any other person that provides clearance or settlement services with respect to financial assets that would require it to register as a clearing agency under the federal securities laws but for an exclusion or exemption from the registration requirement, if its activities as a clearing corporation, including adoption of rules, are subject to regulation by a federal or state governmental authority. See Maine Revised Statutes Title 11 Sec. 8-1102
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Financial asset: except as otherwise provided in section 8?1103, means:
(i) A security;(ii) An obligation of a person or a share, participation or other interest in a person or in property or an enterprise of a person that is, or is of a type, dealt in or traded on financial markets or that is recognized in any area in which it is issued or dealt in as a medium for investment; or(iii) Any property that is held by a securities intermediary for another person in a securities account if the securities intermediary has expressly agreed with the other person that the property is to be treated as a financial asset under this Article. See Maine Revised Statutes Title 11 Sec. 8-1102- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- Partnership: A voluntary contract between two or more persons to pool some or all of their assets into a business, with the agreement that there will be a proportional sharing of profits and losses.
- Security: except as otherwise provided in section 8?1103, means an obligation of an issuer or a share, participation or other interest in an issuer or in property or an enterprise of an issuer:
(i) That is represented by a security certificate in bearer or registered form or the transfer of which may be registered upon books maintained for that purpose by or on behalf of the issuer;(ii) That is one of a class or series or by its terms is divisible into a class or series of shares, participations, interests or obligations; and(iii) That:(A) Is, or is of a type, dealt in or traded on securities exchanges or securities markets; or(B) Is a medium for investment and by its terms expressly provides that it is a security governed by this Article. See Maine Revised Statutes Title 11 Sec. 8-1102- Security certificate: means a certificate representing a security. See Maine Revised Statutes Title 11 Sec. 8-1102
(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. “Investment company security” does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.[PL 1997, c. 429, Pt. B, §2 (NEW).]
(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. An interest in a partnership or limited liability company is a financial asset if it is held in a securities account.[PL 1997, c. 429, Pt. B, §2 (NEW).]
(4). A writing that is a security certificate is governed by this Article and not by Article 3?A, even though it also meets the requirements of that Article. A negotiable instrument governed by Article 3?A is a financial asset if it is held in a securities account.[PL 1997, c. 429, Pt. B, §2 (NEW).]
(5). An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.[PL 1997, c. 429, Pt. B, §2 (NEW).]
(6). A commodity contract, as defined in section 9?1102, subsection (15), is not a security or a financial asset.[PL 1999, c. 699, Pt. B, §20 (AMD); PL 1999, c. 699, Pt. B, §28 (AFF).]
(7). A document of title is not a financial asset unless section 8?1102, subsection (1), paragraph (i), subparagraph (iii) applies.[PL 2009, c. 324, Pt. B, §26 (NEW); PL 2009, c. 324, Pt. B, §48 (AFF).]
SECTION HISTORYPL 1997, c. 429, §B2 (NEW). PL 1999, c. 699, §B20 (AMD). PL 1999, c. 699, §B28 (AFF). PL 2009, c. 324, Pt. B, §26 (AMD). PL 2009, c. 324, Pt. B, §48 (AFF).