Nakashima

appeal from plaintiff’s judgment on a $60,000 promissory note. Due execution, delivery and nonpayment were admitted; but it is contended that both the note and the transaction in which it was given were void, violating Corporations Code sections 26100 and 26103 prohibiting the sale of any corporate security without the permit of the Corporations Commissioner. The trial court found that the permit requirement was inapplicable, under the exceptions of Corporations Code section 25152, subdivision (a) (repealed, 1968, now covered by § 25104, subd. (a)). This conclusion was amply supported by the evidence, and the law, including further applicable sections 25100, subdivision (m), and 25102, subdivision (c). The judgment therefore will be affirmed.

In 1958 or 1959, three promoters caused the Lake Alhambra Development Corporation to be formed (called “Alhambra” herein). Plaintiff Nakashima and his wife conveyed an Antioch subdivision to the corporation, for which they were to receive 70 percent of the stock, each of the promoters having 10 percent. Although formally incorporated, Alhambra never applied for a permit to issue stock, nor did it. It perhaps is not unusual for…