181 Ga. 663 | Ga. | 1935
The plaintiff contends that the investment certificate does not come within the purview of the securities act, because it was issued by the plaintiff as a building and loan association or like association under the Code of 1933, § 16-101, and as such should be considered as a class A or class B security under said act. The act of 1930 (Ga. L. 1930, p. 351) defines “securities” as “stocks, bonds, debentures, notes, certificates of participation, certificates of shares of interest, preorganization certificates and sub
Securities under the act are divided into four classes, A, B, C, and D. Classes A and B are exempt from the operation of the act. Class C includes certain other securities, and Class D includes all other securities not included in classes A, B, and C. The Code of 1933, § 97-301, divides the securities into the respective classes. Paragraphs 1 and 2 of this section are as follows: “(1) Securities, the inherent qualities of which assure their sale and disposition without the' perpetration of fraud, which shall be known as securities in class ‘A.’ (2) Securities, the inherent qualities of which, or which from the nature of one or of both parties to the sale thereof, assure the sale and disposition without the perpetration of fraud, which shall be known as securities in class ‘B.’ While the lan
It is also contended that the investment certificate is not a security, because it amounts only to a borrowing of money by the plaintiff from the purchaser of the certificate. In support of this contention the plaintiff cites Cook v. Equitable Building & Loan Asso., 104 Ga. 814 (30 S. E. 911); Savannah Real Estate &c. Co. v. Silverberg, 108 Ga. 281 (33 S. E. 908). In each of those cases the purchaser had paid the full face value of the instrument purchased, and' no loan back to the purchaser, with the purchased instrument as security, was involved. Furthermore, the securities act expressly includes “bonds, debentures, notes,” as securities within
Judgment reversed.