Effective Jan 1, 1997Repealed and added by Stats. 1996, Ch. 497, Sec. 9. Effective January 1, 1997.
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 either of the following applies:
(1) The security is certificated and the restriction is noted conspicuously on the security certificate.
(2) The security is uncertificated and the registered owner has been notified of the restriction.