EFFECT OF ISSUER'S RESTRICTION ON TRANSFER
Known as the Uniform Commercial Code
The act spans §§ 1–12 (616 sections).
Applied in 2 court decisions — leading case Ritchie v. Rupe (2011)
Most recently applied in Ritchie v. Rupe (April 2011)
Amended by Acts 1995, 74th Leg., ch. 962, Sec. 1, eff
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: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.