Sec. 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. (1) the security is certificated and the restriction is noted conspicuously on the security certificate; or
2. (2) the security is uncertificated and the registered owner has been notified of the restriction.

Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff. Sept. 1, 1995.