The addition of the risk capital definition to Washington's securities law will expand regulation to many transactions that in the past were excluded. Although its full application is unforeseeable, the risk capital definition should apply to financing arrangements in the formation of clubs, associations, and cooperatives. Practitioners must be keenly aware that ventures not traditionally defined within Washington's securities regulations many now fall under the risk capital definition of a security.
Michael E. Stevenson and John J. O'Leary, III, Definition of a Security: Risk Capital and Investment Contracts in Washington, 3 SEATTLE U. L. REV. 83 (1979).