Tex.
Bus. & Com. Code Section 8.103
Rules for Determining Whether Certain Obligations and Interests Are Securities or Financial Assets
(a)
A share or similar equity interest issued by a corporation, business trust, joint stock company, or similar entity is a security.(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.(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.(d)
A writing that is a security certificate is governed by this chapter and not by Chapter 3 (Insolvency, Fraudulent Transfers, and Fraud), even though it also meets the requirements of that chapter. However, a negotiable instrument governed by Chapter 3 (Insolvency, Fraudulent Transfers, and Fraud) is a financial asset if it is held in a securities account.(e)
An option or similar obligation issued by a clearing corporation to its participants is not a security, but is a financial asset.(f)
A commodity contract, as defined in Section 9.102 (Definitions and Index of Definitions)(a)(15), is not a security or a financial asset.(g)
A document of title, as defined in Section 1.201 (General Definitions)(b)(16), is not a financial asset unless Section 8.102 (Definitions)(a)(9)(C) applies.
Source:
Section 8.103 — Rules for Determining Whether Certain Obligations and Interests Are Securities or Financial Assets, https://statutes.capitol.texas.gov/Docs/BC/htm/BC.8.htm#8.103 (accessed May 26, 2025).
