§ 4-8-204 — Effect of issuer's restriction on transfer

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.

Legislative History

Source: L. 96: Entire article R&RE, p. 218, � 2, effective July 1.