District Court Finds that Viatical Settlements are Securities In Michigan and Oklahoma

The US District Court for the Western District of Michigan says that under Oklahoma and Michigan laws, viatical settlements are securities. The court, however, did not rule on whether the instruments are securities under Texas law.

Investors in a number of states had sued Trade Partners Inc. and its affiliate partners for viatical settlements that were sold between 1996 and 2003. They wanted the courts to have the instruments declared securities under Texas, Oklahoma, and Michigan laws.

法院指出，在今年早些时候，根据《密歇根证券法》，根据密歇根州法律，这些工具是定居点。bob200体育并且，根据相关信息和2004年的事实，对《俄克拉荷马州证券法》进行了修改，并将viaticals纳入了构成“投资合同”证券的定义中，地区法院发现，根据bob200体育《俄克拉荷马州证券法》，viatical viatical satements是bob200体育证券。

The court pointed out, however, that the only Texas court that had considered the issue did not find that the instruments were securities under the Texas Securities Act. It also noted that the Texas Securities Board had told a defendant in a state criminal case that viaticals were securities. Because of these conflicting authorities, the district court opted not to determine whether, under the Texas Securities Act, viatical settlements are securities.

A viatical settlement is also called a life settlement. In this kind of transaction, a chronically ill or terminally ill person can sell his or her life insurance benefits to another party.

Oklahoma Uniform Securities Act of 2004

The Texas Securities Act

Michigan Legislature

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