Effect of issuer's restriction on transfer

4-8-204. 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. Source: L. 96: Entire article R&RE, p. 218, � 2, effective July 1. Editor's note: This section is similar to former � 4-8-204 as it existed prior to 1996.