Payable Accounting Corp. v. McKinley

STEWART, Justice:

This appeal is from a summary judgment in which the district court held that two contracts offered by Payable Accounting Corporation to clients and.to investors are not securities as defined by the Utah Uniform Securities Act, U.C.A., 1953, § 61-1-13(12). We reverse.

The facts are not in dispute. Payable Accounting Corporation (PAC) serves commercial enterprises by managing their accounts payable and payrolls. To subscribe to this service, the enterprises are required to sign an agreement called a “client contract.” Among other things, the contract provides that:(1) Each month…