S.C. Code Ann. § 36-8-204 – 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.

HISTORY: 1962 Code Section 10.8-204; 1966 (54) 2716; 1991 Act No. 161, Section 1; 2001 Act No. 67, Section 5. "Certificated security" Section 8-102(a)(4) "Conspicuous" Section 1-201(10) "Issuer" SectiOn 8-201 "Knowledge" Section 1-201(25) "Notify" Section 1-201(25) "Purchaser" Sections 1-201(33) & 8-116 "Security" Section 8-102(a)(15) "Security certificate" Section 8-102(a)(16) "Uncertificated security" Section 8-102(a)(18)