As used in the Model State Commodity Code:
A. "director" means the chief of the securities bureau of the financial institutions division of the regulation and licensing department;
B. "Commodity Exchange Act" means the act of congress known as the Commodity Exchange Act, as amended to the effective date of the Model State Commodity Code;
C. "commodity futures trading commission" means the independent regulatory agency established by congress to administer the Commodity Exchange Act;
D. "CFTC rule" means any rule, regulation or order of the commodity futures trading commission in effect on the effective date of the Model State Commodity Code;
E. "commodity" means, except as otherwise specified by the director by rule, regulation or order, any agricultural, grain or livestock product or by-product, any metal or mineral including a precious metal set forth in Subsection F of this section, any gem or gemstone whether characterized as precious, semi-precious or otherwise, any fuel whether liquid, gaseous or otherwise, any foreign currency and all other goods, articles, products or items of any kind; provided that the term commodity shall not include:
(1) a numismatic coin whose fair market value is at least twenty percent higher than the value of the metal it contains;
(2) real property or any agricultural or livestock product grown or raised on real property and offered or sold by the owner or lessee of such real property; or
(3) any work of art offered or sold by art dealers at public auction or offered or sold through a private sale by the owner thereof;
F. "precious metal" means the following:
(1) silver, in either coin, bullion or other form;
(2) gold, in either coin, bullion or other form;
(3) platinum, in either coin, bullion or other form; and
(4) such other items as the director may specify by rule, regulation or order;
G. "commodity contract" means any account, agreement or contract for the purchase or sale, primarily for speculation or investment purposes and not for use or consumption by the offeree or purchaser, of one or more commodities, whether for immediate or subsequent delivery or whether delivery is intended by the parties, and whether characterized as a cash contract, deferred shipment or deferred delivery contract, forward contract, futures contract, installment or margin contract, leverage contract or otherwise. Any commodity contract offered or sold shall, in the absence of evidence to the contrary, be presumed to be offered or sold for speculation or investment purposes. A commodity contract shall not include any contract or agreement which requires, and under which the purchaser receives, within twenty-eight calendar days from the payment in good funds of any portion of the purchase price, physical delivery of the total amount of each commodity to be purchased under the contract or agreement;
H. "commodity option" means any account, agreement or contract giving a party thereto the right to purchase or sell one or more commodities or one or more commodity contracts, whether characterized as an option, privilege, indemnity, bid, offer, put, call, advance guaranty, decline guaranty or otherwise, but shall not include a commodity option traded on a national securities exchange registered with the United States securities and exchange commission;
I. "commodity merchant" means any of the following, as defined or described in the Commodity Exchange Act or by CFTC rule:
(1) futures commission merchant;
(2) commodity pool operator;
(3) commodity trading advisor;
(4) introducing broker;
(5) leverage transaction merchant;
(6) an associated person of any of the foregoing;
(7) floor broker; and
(8) any other person, other than a futures association, required to register with the commodity futures trading commission;
J. "board of trade" means any person or group of persons engaged in buying or selling any commodity or receiving the same for sale on consignment, whether such person or group of persons is characterized as a board of trade, exchange or other form of marketplace;
K. "offer" or "offer to sell" includes every offer, every attempt to offer to dispose of, or solicitation of an offer to buy, to purchase or to acquire, for value;
L. "sale" or "sell" includes every sale, contract of sale, contract to sell, or disposition, for value;
M. "person" means an individual, a corporation, a partnership, an association, a joint-stock company, a trust where the interest of the beneficiaries are evidenced by a security, an unincorporated organization, a government or a political subdivision of a government, but shall not include a contract market designated by the commodity futures trading commission or any clearinghouse thereof or a national securities exchange registered with the securities and exchange commission, or any employee, officer or director of such contract market, clearinghouse or exchange acting solely in that capacity; and
N. "financial institution" means a bank, savings institution or trust company organized under, or supervised pursuant to, the laws of the United States or of any state.
History: Laws 1985, ch. 163, § 2.
ANNOTATIONSCross references. — For the federal Commodity Exchange Act, see 7 U.S.C. § 1.
Effective dates. — The effective date of the Model State Commodity Code, is June 14, 1985.