84-8-204. 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:
(a) The security is certificated and the restriction is noted conspicuously on the security certificate; or
(b) the security is uncertificated and the registered owner has been notified of the restriction.
History: L. 1996, ch. 202, § 47; July 1.