Court Opinion

ID: 9856979
Source: CourtListenerOpinion
Date Created: 2023-09-24 07:09:11.22968+00
Date Added: 2024-06-11T09:37:41.642352
License: Public Domain

On Rehearing
McQUADE, Justice.
The defendant on petition for rehearing queries if the Court precluded the purchase of corporate convertible debentures which are not subsequently converted to corporate stock. The Court in the opinion analyzed: “Stock purchases offer the possibility of capital gain, but so also are they subject to the risk of capital loss. Convertible bonds may be purchased, but the conversion privilege may not be exercised. Therefore, we hold that Sections 9(6) and 9(8) of S.B. 1277 are unconstitutional * * Section 9(6) was specifically denoted as violative of Idaho Const, art. 9, sec. 11, as amended, because of the privilege of convertibility of the bonds authorized therein.