ABA Section of Business Law
eSource
Holy Smoke, My Promissory Note's a Security!
- What happens when the commercial law rules for promissory notes suddenly shift from Article 3 (or comparable common law principles) to Article 8? This past April, the New York Court of Appeals held that eight promissory notes issued to four individuals as partial payment for their business were securities governed by Article 8 ("Investment Securities") of the UCC.
