Perrysburg Township v. City of Rossford

{¶ 1} The issue in this case is whether an instrument providing an unconditional promise to pay a specified sum of money on a date certain can be a “security” pursuant to R.C. 1707.01(B). To determine whether a particular promissory note is a security, we adopt the test set forth in Reves v. Ernst & Young (1990), 494 U.S. 56, 66-67, 110 S.Ct. 945, 108 L.Ed.2d 47. Applying this test to the facts stated in Perrysburg Township’s complaint, we conclude that Perrysburg Township may be able to prove that the note in this case is a security, and, therefore, we affirm the judgment of the court of…