8-204 - Effect of Issuer's Restriction on Transfer. - New York Statutes

Section 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; or (3) the restriction is on the transfer of a cooperative interest and the restriction is set forth in the cooperative record.