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New Jersey Statutes - Title 12A Commercial Transactions - 12A:8-204 Effect of Issuer's Restriction on Transfer.

Legal Research Home > New Jersey Laws > Commercial Transactions > New Jersey Statutes - Title 12A Commercial Transactions - 12A:8-204 Effect of Issuer's Restriction on Transfer.

12A: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:

     a. the security is certificated and the restriction is noted conspicuously on the security certificate; or

     b. the security is uncertificated and the registered owner has been notified of the restriction.

     L.1997,c.252,s.1.

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Last modified: February 13, 2012