TITLE 28

COMMERCIAL TRANSACTIONS

CHAPTER 8

INVESTMENT SECURITIES

PART 2.

ISSUE AND ISSUER

28-8-204.  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)  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.

History:

[28-8-204, added 1995, ch. 272, sec. 2, p. 887.]