§ 25-8-204. Effect of issuer's restriction on transfer.
§25‑8‑204. Effect of issuer's restriction on transfer.
A restriction on transfer of asecurity imposed by the issuer, even if otherwise lawful, is ineffectiveagainst a person without knowledge of the restriction unless:
(1) The security iscertificated and the restriction is noted conspicuously on the securitycertificate; or
(2) The security isuncertificated and the registered owner has been notified of the restriction. (1941,c. 353, s. 15; G.S., s. 55‑95; 1955, c. 1371, s. 2; 1965, c. 700, s. 1;1989, c. 588, s. 1; 1997‑181, s. 1.)