CHAPTER 46. UNIFORM COMMERCIAL CODE.

ARTICLE 8. INVESTMENT SECURITIES.

§46-8-204. 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.

Bill History For §46-8-204

1979 Regular Session
Senate Bill 110