Alabama Statutes

§ 7-8-204 — Effect of Issuer’s Restriction on Transfer

Alabama·Title 7 Commercial Code·Art. 8 Investment Securities·Part 2 Issue and Issuer

A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against a person without knowledge of the restriction unless:

(1)the security is certificated and the restriction is noted conspicuously on the security certificate; or
(2)the security is uncertificated and the registered owner has been notified of the restriction.

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Legislative History

(Acts 1965, No. 549, p. 811; repealed by Acts 1996, No. 96-742, p. 1241, §1; added by Acts 1996, No. 96-742, p. 1241, §1.)

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