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.