Section 8-204 - Effect of issuer's restrictions on transfer.

§ 8-204. Effect of issuer's restrictions 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. 
 

[1996, ch. 92, § 2.]