This article posted on our partner site discusses an Ontario court decision that promissory notes are securities under the Ontario Securities Act, unless they are more akin to the types of notes considered to not be securities, using the ‘family resemblance test’. If the promissory notes are akin to a lien on assets by a small business, the notes are less likely to be characterized as securities.


–  –  –

This article is provided for informational purposes only and does not create a lawyer-client relationship with the reader. It is not legal advice and should not be regarded as such. Any reliance on the information is solely at the reader’s own risk. is a legal tool geared towards entrepreneurs, early-stage businesses and small businesses alike to help draft legal documents to make businesses more productive. Clausehound offers a $10 per month DIY Legal Library which hosts tens of thousands of legal clauses, contracts, articles, lawyer commentaries and instructional videos. Find where you see this logo.