State v. Friend

OPINION

In this case, we are asked to determine the meaning of the word “note,” as defined as a “security,” under NRS 90.295 of the Nevada Uniform Securities Act (“the Act”). The district court held that one-year notes issued by respondent Robert Marcus Friend were not securities under the Act.

We conclude that a plain, literal reading of the word “note,” as contained in the definition of “security,” under NRS 90.295 leads to absurd results and, therefore, we reject this interpretation. However, since the Act is based upon federal securities acts, we conclude that it is appropriate for this…