Blog Bite: Does the Ontario Securities Act apply to promissory notes?

This article Canada: “Substance Over Form” In Defining A Security 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.

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Written by Chris.