Section 55-8-102 - Definitions(a) In this article: (1) "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;(2) "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;(3) "broker" means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity;(4) "certificated security" means a security that is represented by a certificate;(5) "clearing corporation" means: (i) a person that is registered as a "clearing agency" under the federal securities laws;(ii) a federal reserve bank; or(iii) 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;(6) "communicate" means to: (i) send a signed record; or(ii) transmit information by any mechanism agreed upon by the persons transmitting and receiving the information;(7) "entitlement holder" means a person identified in the records of a securities intermediary as the person having a security entitlement against the securities intermediary. If a person acquires a security entitlement by virtue of Paragraph (2) or (3) of Subsection (b) of Section 55-8-501 NMSA 1978, that person is the entitlement holder;(8) "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;(9) "financial asset", except as otherwise provided in Section 55-8-103 NMSA 1978, means: (ii) 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(iii) 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. 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;(11) "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;(12) "instruction" means a notification communicated to the issuer of an uncertificated security that directs that the transfer of the security be registered or that the security be redeemed;(13) "registered form", as applied to a certificated security, means a form in which: (i) the security certificate specifies a person entitled to the security; and(ii) 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;(14) "securities intermediary" means: (i) a clearing corporation; or(ii) 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;(15) "security", except as otherwise provided in Section 55-8-103 NMSA 1978, 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: (i) that 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;(ii) that 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(iii) that: (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;(16) "security certificate" means a certificate representing a security;(17) "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(18) "uncertificated security" means a security that is not represented by a certificate.(b) The following definitions in this article and other articles apply to this article: appropriate person | Section 55-8-107 NMSA 1978; |
control | Section 55-8-106 NMSA 1978; |
controllable account | Section 55-9-102 NMSA 1978; |
controllable electronic record | Section 55-12-102 NMSA 1978; |
controllable payment intangible | Section 55-9-102 NMSA 1978; |
delivery | Section 55-8-301 NMSA 1978; |
investment company security | Section 55-8-103 NMSA 1978; |
Issuer | Section 55-8-201 NMSA 1978; |
overissue | Section 55-8-210 NMSA 1978; |
protected purchaser | Section 55-8-303 NMSA 1978; and |
securities account | Section 55-8-501 NMSA 1978. |
(c) In addition, Chapter 55, Article 1 NMSA 1978 contains general definitions and principles of construction and interpretation applicable throughout this article.(d) 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.1978 Comp., § 55-8-102, enacted by Laws 1996, ch. 47, § 6; 2005, ch. 144, § 92.Amended by 2023, c. 142,s. 38, eff. 1/1/2024.