Effect of issuer's restriction on transfer
Known as the Uniform Commercial Code
The act spans §§ 4–4 (597 sections).
Applied in 2 court decisions — leading case Timberland Bancshares, Inc. v. Garrison (In re Lee) (2011)
Most recently applied in Ash v. First Nat'l Bank of E. Ark. (March 2019)
Acts 1995, No. 425, § 1.
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.
Current official text: Arkansas General Assembly. Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Arkansas statutes; confirm against the official source for the current text. Not legal advice.