(a) In this division: (1) âAdverse claimâ 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) âBearer form,â 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) âBrokerâ means a person defined as a broker or dealer under the federal securities laws, but without excluding a bank acting in that capacity. (4) âCertificated securityâ means a security that is represented by a certificate. (5) âClearing corporationâ means any of the following: (A) A person that is registered as a âclearing agencyâ under the federal securities laws. (B) A federal reserve bank. (C) 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) âCommunicateâ means to either: (A) Send a signed record. (B) Transmit information by any mechanism agreed upon by the persons transmitting and receiving the information. (7) âEntitlement holderâ 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 subdivision (b) of Section 8501, that person is the entitlement holder. (8) âEntitlement orderâ 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) âFinancial asset,â except as otherwise provided in Section 8103, means any of the following: (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, that is, or is of a type, dealt in or traded on financial markets, or that is recognized in any area in which it is issued or dealt in as a medium for investment. (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 division. As context requires, the term means either the interest itself or the means by which a personâs claim to it is evidenced, including a certificated or uncertificated security, a security certificate, or a security entitlement. (10) [Reserved] (11) âEndorsementâ 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) âInstructionâ 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) âRegistered form,â as applied to a certificated security, means a form in which both of the following apply: (A) The security certificate specifies a person entitled to the security. (B) 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) âSecurities intermediaryâ means either: (A) A clearing corporation. (B) 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) âSecurity,â
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