§ 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. (Added 1995, No. 92 (Adj. Sess.), § 1, eff. Jan. 1, 1997.)