State v. Kelson’s Empirical Analysis

Citation profile

4 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 4 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “You are instructed that a "note" is presumed to be a security. However, certain notes have been classified as non-seem-ties; these notes are: 1. the note delivered in consumer finane-ing, " Oo ' 2. the note secured by a mortgage on a home, . . 3. the short-term note secured by a lien on a small business or some of its assets, 4. the note evidencing a "character" loan to a bank customer, . 5. - short term notes secured by an assignment of accounts receivable, or 6. a note which simply formalizes an open-account debt incurred in the ordinary course of business particularly if, as in the -case of a customer of a broker, it is collat-eralized. A class of notes that resembles one of these exceptions can be added to the list of non-security notes if they meet a four factor test. That test is to: 1. examine the transaction to assess the motivations that would prompt a reasonable seller and buyer to enter into it. If the seller's purpose is to raise money for the general use of a business enterprise or to finance substantial investments and the buyer is. interested primarily in the profit the note is expected to generate, the instrument is likely to be a "security." On the other hand, if the note is exchanged to facilitate the purchase and sale of a minor asset or consumer good, to correct for the seller's cash-flow difficulties, or to advance some other commercial or consumer purpose, the note is less sensibly described as a "security." ~ 2. [elxamine the "plan of dlstmbutlon” of th”

   1 later decision quote this exact passage · from the majority
   e.g. People v. Mendenhall

2. “A note is presumed to be a "security," and that presumption may be rebutted only by a showing that the note is a note delivered in consumer financing, a note secured by a 'mortgage on a home, a short-term note secured by a lien on a small business or some of its assets, a note evidencing a "character" loan to a bank customer, a short-term note secured by an assignment of accounts receivable, a note that simply formalizes an open-account debt incurred in the ordinary course of business (particularly if, as in the case of the customer of a broker, it is collateralized), a note evidence-ing a loan by a commercial bank for current operations, or a note bearing a strong resemblance to any of the mentioned types of notes. In determining whether the note in this case bears a strong resemblance to a type of note not considered a “security,” you should take into account: 1. The motivations that would prompt a reasonable seller 'and buyer to enter into the transaction evidenced by the note. If the seller's purpose was to raise money for the general use of a business. enterprise or to finance substantial investments and the buyer was interested primarily in the profit the note was expected to generate, the instrument is likely a "security." If the note was exchanged to facilitate the purchase and sale of a minor asset or consumer good, to correct for the seller's cash-flow difficulties, or to advance some other commercial or consumer purpose, on the other hand, the note is less sensibly”

   1 later decision quote this exact passage · from the majority
   e.g. People v. Mendenhall

3. “is presumed to be a security. However, certain notes have been classified as non-seem-ties; these notes are: 1. the note delivered in consumer finane-ing,”

   1 later decision quote this exact passage · from the majority
   e.g. People v. Mendenhall