§ 36-8-204. Effect of issuer's restriction on transfer.
65 words·~1 min read·
/sc/title-36-commercial-code/chapter-8/commercial-code-investment-securities/36-8-204·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 36-8-204. 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.