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:
The security is certificated and the restriction is noted conspicuously on the securitycertificate; or
The security is uncertificated and the registered owner has been notified of the restriction.
Source: L. 96: Entire article R&RE, p. 218, § 2, effective July 1.
Editor's note: This section is similar to former § 4-8-204 as it existed prior to 1996.