Units as Securities Sample Clauses
The "Units as Securities" clause defines the legal status of ownership units in an entity as securities under applicable law. This means that the units are subject to securities regulations, such as registration requirements, transfer restrictions, and disclosure obligations. For example, members may need to comply with federal or state securities laws when selling or transferring their units. The core function of this clause is to clarify the regulatory framework governing the units, ensuring compliance and protecting both the entity and its members from inadvertent legal violations.
Units as Securities. Units shall constitute “securities” governed by Article 8 of the applicable version of the Uniform Commercial Code, as amended from time to time after the Effective Date.
Units as Securities. The Units shall constitute “securities” for purposes of Article 8 of the Uniform Commercial Code as the same may, from time to time, be in effect in the State of New York and “investment property” for purposes of Article 9 of the Uniform Commercial Code.
Units as Securities. Each Unit of the Company shall be treated as a "Security" governed by Article 8 of the Delaware Uniform Commercial Code.
Units as Securities. Each limited liability company interest in the Company shall constitute a “security” within the meaning of and governed by (i) Article 8 of the Uniform Commercial Code (including Section 8 102(a)(15) thereof) as in effect from time to time in the State of Delaware, and (ii) Article 8 of the Uniform Commercial Code of any other applicable jurisdiction that now or hereafter substantially includes the 1994 revisions to Article 8 thereof as adopted by the American Law Institute and the National Conference of Commissioners on Uniform State Laws and approved by the American Bar Association on February 14, 1995 (and each limited liability company interest in the Company shall be treated as such a “security” for all purposes, including perfection of the security interest therein under Article 8 of each applicable Uniform Commercial Code).