Ky. Rev. Stat. » Chapter 355
Kentucky Revised Statutes

Ky. Rev. Stat. § 355.8-102 (2026)

Definitions and index of definitions

✓ current as of May 2026
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(1) In this article:

(a) "Adverse claim" means a claim that a claimant has a property interest in a financial asset and that it is a violation of the rights of the claimant for another person to hold, transfer, or deal with the financial asset;

(b) "Bearer form," as applied to a certificated security, means a form in which the security is payable to the bearer of the security certificate according to its terms but not by reason of an indorsement;

(c) "Broker" means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity;

(d) "Certificated security" means a security that is represented by a certificate;

(e) "Clearing corporation" means:

1. A person that is registered as a "clearing agency" under the federal securities laws;

2. A federal reserve bank; or

3. 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 promulgation of rules, are subject to regulation by a federal or state governmental authority;

(f) "Communicate" means to:

1. Send a signed record; or

2. Transmit information by any mechanism agreed upon by the persons transmitting and receiving the information;

(g) 1. "Entitlement holder" means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary.

2. If a person acquires a security entitlement by virtue of KRS 355.8- 501(2)(b) or (c), that person is the entitlement holder;

(h) "Entitlement order" means a notification communicated to a securities intermediary directing transfer or redemption of a financial asset to which the entitlement holder has a security entitlement;

(i) 1. "Financial asset," except as otherwise provided in KRS 355.8-103, means:

a. A security;

b. An obligation of a person or a share, participation, or other interest in a person or in property or an enterprise of a person, which is, or is of a type, dealt in or traded on financial markets, or which is recognized in any area in which it is issued or dealt in as a medium for investment; or

c. 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.

2. As context requires, the term means either the interest itself or the means by which a person's claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement;

(j) Reserved;

(k) "Indorsement" means a signature that alone or accompanied by other words is made on a security certificate in registered form or on a separate document for the purpose of assigning, transferring, or redeeming the security or granting a power to assign, transfer, or redeem it;

(l) "Instruction" means a notification communicated to the issuer of an uncertificated security which directs that the transfer of the security be registered or that the security be redeemed;

(m) "Registered form," as applied to a certificated security, means a form in which:

1. The security certificate specifies a person entitled to the security; and

2. A transfer of the security may be registered upon books maintained for that purpose by or on behalf of the issuer, or the security certificate so states;

(n) "Securities intermediary" means:

1. A clearing corporation; or

2. A person, including a bank or broker, that in the ordinary course of its business maintains securities accounts for others and is acting in that capacity;

(o) "Security," except as otherwise provided in KRS 355.8-103, 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:

1. Which 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;

2. Which 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

3. Which:

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;

(p) "Security certificate" means a certificate representing a security;

(q) "Security entitlement" means the rights and property interest of an entitlement holder with respect to a financial asset specified in Part 5 of this article; and

(r) "Uncertificated security" means a security that is not represented by a certificate.

(2) The following definitions in this article and other articles of this chapter apply to this article:

(a) "Appropriate person." KRS 355.8-107;

(b) "Control." KRS 355.8-106;

(c) "Controllable account." KRS 355.9-102;

(d) "Controllable electronic record." KRS 355.12-102;

(e) "Controllable payment intangible." KRS 355.9-102;

(f) "Delivery." KRS 355.8-301;

(g) "Investment company security." KRS 355.8-103;

(h) "Issuer." KRS 355.8-201;

(i) "Overissue." KRS 355.8-210;

(j) "Protected purchaser." KRS 355.8-303; and

(k) "Securities account." KRS 355.8-501.

(3) In addition, Article 1 of this chapter contains general definitions and principles of construction and interpretation applicable throughout this article.

(4) The characterization of a person, business, or transaction for purposes of this article does not determine the characterization of the person, business, or transaction for purposes of any other law, regulation, or rule. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 39, effective January 1, 2025. -- Amended 2006 Ky. Acts ch. 242, sec. 56, effective July 12, 2006. -- Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 115, effective January 1, 1997. -- Amended 1986 Ky. Acts ch. 118, sec. 10, effective July 1, 1987. -- Amended 1972 Ky. Acts ch. 314, sec. 1 -- Amended 1964 Ky. Acts ch. 130, sec. 15, effective July 1, 1964. -- Created 1958 Ky. Acts ch. 77, sec. 8-102.

Notes of Decisions
Cited in 4 cases, 1983–2010 · leading case: Smith v. Baker, 715 S.W.2d 890 (Ky. Ct. App. 1986).
Sort: Relevance Newest Treatment
Smith v. Baker, 715 S.W.2d 890 (Ky. Ct. App. 1986). · cites it 3× “8-319 does not apply to this buy-sell agreement, because the stock in B & S Body Shop does not fall within the definition of a “security” in KRS 355.8-102. KRS 355.8-319 is written as follows: (1) A contract for the sale of securities is not enforceable by way of action or…”
Meshew v. Whitlock, 9 S.W.3d 581 (Ky. Ct. App. 1999). · cites it 2× “It is well to note at the outset that the stock shares at issue are securities as defined at KRS 355.8-102(o) 2 and that the stock certificate is a “security certificate.”
Am. Bank & Trust Co. v. Shouse & Burrus, 648 S.W.2d 540 (Ky. Ct. App. 1983). “KRS 355.8-102 and KRS 355.8-201. The Bank argues that it is not claiming a lien pursuant to KRS 355.”
Flener v. Alexander (In Re Alexander), 429 B.R. 876 (Bankr. W.D. Ky. 2010). · cites it 3× “The Debtor was an “entitlement holder” as defined by KRS 355.8-102(l)(g) and the Bank was a “securities intermediary” as described in KRS 355.”
— Ky. Rev. Stat. § 355.8-102(l)(g) — 1 case
Flener v. Alexander (In Re Alexander), 429 B.R. 876 (Bankr. W.D. Ky. 2010). “The Debtor was an “entitlement holder” as defined by KRS 355.8-102(l)(g) and the Bank was a “securities intermediary” as described in KRS 355.”
— Ky. Rev. Stat. § 355.8-102(l)(n)(2) — 1 case
Flener v. Alexander (In Re Alexander), 429 B.R. 876 (Bankr. W.D. Ky. 2010). “The Debtor was an “entitlement holder” as defined by KRS 355.8-102(l)(g) and the Bank was a “securities intermediary” as described in KRS 355.”
— Ky. Rev. Stat. § 355.8-102(l)(q) — 1 case
Flener v. Alexander (In Re Alexander), 429 B.R. 876 (Bankr. W.D. Ky. 2010). “The Debtor was an “entitlement holder” as defined by KRS 355.8-102(l)(g) and the Bank was a “securities intermediary” as described in KRS 355.”
— Ky. Rev. Stat. § 355.8-102(o) — 1 case
Meshew v. Whitlock, 9 S.W.3d 581 (Ky. Ct. App. 1999). “It is well to note at the outset that the stock shares at issue are securities as defined at KRS 355.8-102(o) 2 and that the stock certificate is a “security certificate.”
— Ky. Rev. Stat. § 355.8-102(p) — 1 case
Meshew v. Whitlock, 9 S.W.3d 581 (Ky. Ct. App. 1999). “It is well to note at the outset that the stock shares at issue are securities as defined at KRS 355.8-102(o) 2 and that the stock certificate is a “security certificate.”
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