A person related to a security transaction refers to individuals or entities connected to a securities transaction. The Uniform Commercial Code (UCC) categorizes these persons into two groups: individuals and organizations. Understanding who qualifies as a person related to a security transaction is essential for compliance and legal clarity in financial dealings.
This term is primarily used in commercial law, particularly in the context of securities transactions. It helps identify individuals and organizations that may have a vested interest or influence over a transaction. This classification is crucial in various legal practices, including corporate governance, compliance, and securities regulation. Users can manage related forms and agreements through platforms like US Legal Forms, which provide templates drafted by legal professionals.
Here are a couple of examples of abatement:
Example 1: A husband and wife are involved in a securities transaction where the husband is the primary investor. The wife qualifies as a person related to the transaction due to their marital relationship.
Example 2: A corporate officer of a company executing a securities transaction may have family members who are also considered related persons under the UCC.
The primary reference for this term is the Uniform Commercial Code (UCC), specifically UCC § 9-102 (63), which outlines the definitions and classifications of persons related to security transactions.
| Term | Definition | Difference |
|---|---|---|
| Related Person | Any individual connected by blood or marriage. | Broader than just those involved in securities transactions. |
| Security Holder | Individual or entity owning securities. | Focuses on ownership rather than relationships. |
If you find that this term applies to your situation, consider reviewing any securities transactions you are involved in to identify related persons. You may want to use US Legal Forms for templates that can help you navigate these transactions. If your situation is complex, seeking advice from a legal professional is advisable.
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Individuals connected by blood or marriage, as well as organizational affiliates, may qualify.