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Jul 26, 2013

THE GEORGIA COURT OF APPEALS LOOKS AT THE DEFINITION OF A SECURITY

In Cushing v. Cohen, Case No. A13A0736 (decided July 16, 2013), the Georgia Court of Appeals looked at whether a particular financial transaction fit within the definition of a security under Georgia law. That decision has implications for all types of business and investment structures in Georgia. In Cushing, the principals created a “leveraged lending program,” in which a corporation they controlled pooled money borrowed from other parties with money borrowed from a bank. The corporation then loaned the money to developers. The individual investors received a promissory note in exchange for their investment. When the developments funded by the… Read more