Typically, when promissory notes are offered to the public, investors are not informed that the promissory note is a ‘security’. Yet, under American law, specifically the Securities Exchange Act of 1934, many promissory notes qualify as securities. This was further clarified by the Supreme Court of the United States in the 1990 case of Reves v. Ernst & Young. In that case, the court noted that all corporate-based notes that have a maturity time in excess of nine months are presumed to be securities. Yet, despite being securities, many promissory notes are unlawfully offered by non-registered individuals, outside industry regulations.