Oregon Statutes 78.1030 – Rules for determining whether certain obligations and interests are securities or financial assets
(1) A share or similar equity interest issued by a corporation, business trust, joint stock company or similar entity is a security.
Terms Used In Oregon Statutes 78.1030
- 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.
- 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.
- 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.
(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, endowment policy or annuity contract issued by an insurance company.
(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 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.
(4) A writing that is a security certificate is governed by this chapter and not by ORS Chapter 73, even though it also meets the requirements of that chapter. However, a negotiable instrument governed by ORS Chapter 73 is a financial asset if it is held in a securities account.
(5) An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.
(6) A commodity contract, as defined in ORS § 79.0102, is not a security or a financial asset.
(7) A document of title is not a financial asset unless ORS § 78.1020 (1)(i)(A)(iii) applies. [1961 c.726 § 78.1030; 1985 c.676 § 78.1030; 1995 c.328 § 3; 2001 c.445 § 151; 2009 c.181 § 90]