Practice question
A mining enterprise divides its mineral rights into fractional undivided interests evidenced by contracts. It sells these interests to investors but calls the contracts 'resource access acknowledgments.' Its lawyer argues that the contracts fall outside Section 3.1 solely because they are neither shares nor bonds. Which conclusion follows?
- The argument fails because fractional undivided mineral interests are an expressly listed class.
- The argument succeeds because the statutory list contains only shares and bonds.
- The argument succeeds because the enterprise can choose classification through its contract title.
- The interests are securities only if each buyer acquires the entire mineral right.
- The contracts are necessarily exempt from registration because they concern minerals.
Legal references
- RA 8799, Section 3.1; https://lawphil.net/statutes/repacts/ra2000/ra_8799_2000.html
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