Kentucky Revised Statutes

Ky. Rev. Stat. § 355.8-103 (2026)

Rules for determining whether certain obligations and interests are

✓ current as of May 2026

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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.

(2) (a) An "investment company security" is a security.

(b) "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.

(c) Investment company security does not include an insurance policy or endowment policy or annuity contract issued by an insurance company.

(3) (a) An interest in a partnership or limited liability company is not a security unless:

1. It is dealt in or traded on securities exchanges or in securities markets;

2. Its terms expressly provide that it is a security governed by this article; or

3. It is an investment company security.

(b) However, an interest in a partnership or limited liability company is a financial asset if it is held in a securities account.

(4) (a) A writing that is a security certificate is governed by this article and not by Article 3 of this chapter, even though it also meets the requirements of that article.

(b) However, a negotiable instrument governed by Article 3 of this chapter 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 KRS 355.9-102(1), is not a security or a financial asset.

(7) A document of title, as defined in KRS 355.1-201(2), is not a financial asset unless KRS 355.8-102(1)(i)1.c. applies.

(8) A controllable account, controllable electronic record, or controllable payment intangible is not a financial asset unless KRS 355.8-102(1)(i)1.c. applies. Effective: January 1, 2025 History: Amended 2024 Ky. Acts ch. 10, sec. 40, effective January 1, 2025. -- Amended 2012 Ky. Acts ch. 132, sec. 59, effective July 12, 2012. -- Amended 2000 Ky. Acts ch. 408, sec. 169, effective July 1, 2001. -- Repealed and reenacted 1996 Ky. Acts ch. 130, sec. 116, effective January 1, 1997. -- Amended 1986 Ky. Acts ch. 118, sec. 11, effective July 1, 1987. -- Created 1958 Ky. Acts ch. 77, sec. 8-103, effective July 1, 1960.

Notes of Decisions

Cited in 2 cases, 1983–1999 · leading case: Am. Bank & Trust Co. v. Shouse & Burrus, 648 S.W.2d 540 (Ky. Ct. App. 1983).

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Am. Bank & Trust Co. v. Shouse & Burrus, 648 S.W.2d 540 (Ky. Ct. App. 1983). · cites it 2× “KRS 355.8-103, reads: A lien upon a security in favor of an issuer thereof is valid against a purchaser only if the right of the issuer to such lien is noted conspicuously on the security.”

Meshew v. Whitlock, 9 S.W.3d 581 (Ky. Ct. App. 1999). ““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 or an issuer: 1.”

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