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Can you summarize MNST 336.8-103?
UNIFORM COMMERCIAL CODE > RULES FOR DETERMINING WHETHER CERTAIN OBLIGATIONS AND INTERESTS ARE SECURITIES OR FINANCIAL ASSETS.
Short Summary
This legal document, governed by the Minnesota Statutes under the Uniform Commercial Code, provides rules for determining whether certain obligations and interests are classified as securities or financial assets. It states that shares or similar equity interests issued by corporations, business trusts, joint stock companies, or similar entities are considered securities. Investment company securities, which include shares or similar equity interests issued by registered investment companies, are also classified as securities. Interests in partnerships or limited liability companies are generally considered general intangibles, unless they are dealt in or traded on a securities exchange, expressly governed by this article, or classified as investment company securities. However, if these interests are held in a securities account, they are considered financial assets. The document also clarifies that security certificates are governed by this article, not article 3, and negotiable instruments held in securities accounts are financial assets. Options or similar obligations issued by clearing corporations are financial assets, while commodity contracts are neither securities nor financial assets. Document of titles are not financial assets unless specified conditions apply.
Whom does it apply to?
Corporations, business trusts, joint stock companies, similar entities, investment companies, partnerships, limited liability companies, clearing corporations
What does it govern?
Determining whether certain obligations and interests are securities or financial assets
What are exemptions?
Insurance policies, endowment policies, annuity contracts, negotiable instruments governed by article 3, commodity contracts
What are the Penalties?
No penalties mentioned.
Jurisdiction
Minnesota