Effect of issuer’s restriction on transfer
Known as the Uniform Commercial Code
The act spans §§ 104–104 (489 sections).
Applied in 2 court decisions — leading case Guilfoyle v. Olde Monmouth Stock Transfer (2014)
Most recently applied in Shaw v. Empire Stock Transfer Inc. (May 2019)
(Added to NRS by 1965, 880; A 1985, 92; 1997, 393)
A restriction on transfer of a security imposed by the issuer, even if otherwise lawful, is ineffective against any person without actual 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: Nevada Legislature. Reproduced from public-domain Nevada statutes; confirm against the official source for the current text. Not legal advice.