47-8-204 - Effect of issuer's restriction on transfer. - Tennessee Statutes

47-8-204. 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.

[Acts 1997, ch. 79, § 1.]