4.A hybrid product is subject to this Act unless its terms, the terms of any collateral agreement governing it and the circumstances of its offering, issue or entering into show that it is predominantly a security within the meaning of the Securities Act (chapter V-1.1), in which case it is considered to be a security and is governed by that Act.
A hybrid product is presumed to be predominantly a security if
(1) the offeror receives payment of the purchase price on the delivery of the hybrid product;
(2) the purchaser is under no obligation to make any additional payment beyond the purchase price as a margin deposit, margin, settlement or other such amount during the life of the hybrid product or at maturity; and
(3) the terms of the hybrid product do not include margin requirements based on a market value of its underlying interest.