Give answer in IRAC Format

17.1 Derinition of Security The Farmer's Cooperative of Arkansas and Oklahoma (COOp ) was an agricultural cooperative that had approximately 23,000 members. To raise money to support its senteral business operations, Co-Op sold promissory notes to investors that both members and nemand. Co-Op offered an interest rate higher than that program," and offered accounts at financial institutions. More than 1,600 people purchased the notes, worth a total of $10 million. Suble quently, Co-Op filed for bankruptey. A class of holders of the notes filed suit against Ernst \& Young, a national fitm of certified public accountants that had audited Co-Op's financial statements, allegiing that Ernst \& Young had violated Section 10(b) of the Securities Exchange Act of 1934. Are the notes issued by Co-Op securities? Reeves . Ernst \& Youn, 494 U.S. 56, 110 S.Ct. 945, 1990 U.S. Lexis 1051 (Supreme Court of the United States)