B. Edmond Waters, Arkansas Securities Commissioner, Appellant v. Isaac Hal Millsap Iii, Giffor — Danielson, J…

Summary

Justice Danielson, dissenting, would affirm the circuit court’s determination that the challenged transactions were loans rather than securities under the Arkansas Securities Act. He reasoned that the lenders expected only repayment with fixed interest, bore no venture-related risk capital, had no managerial control, and received interest regardless of the borrower’s success or failure. The dissent would continue applying Arkansas’s all-factor analysis rather than the federal note test. Chief Justice Hannah and Justice Hart joined the dissent.