Cite as: 80 CNCA § 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.

Historical Data

LA 26–03, eff. October 2, 2003.