400.8-204. Effect of issuer's restriction on transfer.
Effect of issuer's restriction on transfer.
400.8-204. A restriction on transfer of a security imposed by theissuer, even if otherwise lawful, is ineffective against a person withoutknowledge of the restriction unless:
(1) The security is certificated and the restriction is notedconspicuously on the security certificate; or
(2) The security is uncertificated and the registered owner has beennotified of the restriction.
(L. 1963 p. 503 § 8-204, A.L. 1992 S.B. 448, A.L. 1997 S.B. 6)