Effect of issuer's restriction on transfer.

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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.

History of Section.
P.L. 2000, ch. 182, § 5; P.L. 2000, ch. 420, § 5.


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