Effect of issuer's restriction on transfer
Applied in 1 court decision — leading case 12 F. Supp. 2d 1114 - Clark v. Airavada Corp. (1998)
Most recently applied in 12 F. Supp. 2d 1114 - Clark v. Airavada Corp. (July 1998)
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.
Official source: Arizona State Legislature. Reproduced from public-domain Arizona statutes; confirm against the official source for the current text. Not legal advice.