AGO 5426.

• Case Date: February 15, 1979
• Court: Michigan

Michigan Attorney General Opinions 1979. AGO 5426. February 15, 1979STATE OF MICHIGAN FRANK J. KELLEY, ATTORNEY GENERAL Opinion No. 5426CHILDREN AND MINORS: Uniform Gifts to Minors Act GIFTS: Uniform Gifts to Minors Act LIMITED PARTNERSHIP: Interest as security under Uniform Gifts to Minors Act PARTNERSHIPS: Interest as security under Uniform Gifts to Minors Act WORDS AND PHRASES: 'Security' A limited partner's interest in a limited partnership is a 'security' within the provisions of the Uniform Gifts to Minors Act. A general partner's interest in a limited partnership is not a 'security' within the meaning of the term used in the Uniform Gifts to Minors Act. Honorable John Kelley State Senator The Capitol Lansing, MichiganYou have requested my opinion as to whether (1) a limited partner's interest and (2) a general partner's interest in a limited partnership are securities within the meaning of section 1(1) of the Uniform Gifts to Minors Act, 1959 PA 172, as amended; MCLA 554.451(1); MSA 27.3178(241.21)(1) so as to be appropriate subjects of gifts to minors. The term 'security' is defined in the Uniform Gifts to Minors Act, 1959 PA 172, Sec. 1(1), supra as follows: "Security' means a note, stock, treasury, stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in an oil, gas, or mining title or lease or in payments out of production under such a title or lease, collateral trust certificate, transferable share, voting trust certificate or, in general, any interest or instrument commonly known as a security, or any certificate of interest or participation in, any temporary or interim certificate, receipt or certificate of deposit for, or any warrant or right to subscribe to or purchase, any of the foregoing. The term does not include a security of which the donor is the issuer. A security is in 'registered form' when it specifies a person entitled to it or to the rights it evidences and its transfer may be registered upon books maintained for that purpose by or on behalf of the issuer.' (emphasis added) The definition of 'security' under the Uniform Gifts to Minors Act is substantially the same as used in the Uniform Securities Act, 1964 PA 265, Sec. 401(1), MCLA 451.801(1); MSA 19.776(401)(1). (fn1) Therefore, the interpretation of the term 'security' under the Uniform Securities Act can...