Texas Business Organizations Code - Section 200.157. Enforceability Of Restriction On Transfer Of Certain Securities
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§ 200.157. ENFORCEABILITY OF RESTRICTION ON TRANSFER OF
CERTAIN SECURITIES. (a) A restriction placed on the transfer or
registration of the transfer of a security of a real estate
investment trust is specifically enforceable against the holder, or
a successor or transferee of the holder, if:
(1) the restriction is reasonable and noted
conspicuously on the certificate or other instrument representing
the security; or
(2) with respect to an uncertificated security, the
restriction is reasonable and a notation of the restriction is
contained in the notice sent with respect to the security under
Section 3.205.
(b) Unless noted in the manner specified by Subsection (a)
with respect to a certificate or other instrument or an
uncertificated security, an otherwise enforceable restriction is
ineffective against a transferee for value without actual knowledge
of the restriction at the time of the transfer or against a
subsequent transferee, regardless of whether the transfer is for
value. A restriction is specifically enforceable against a person
other than a transferee for value from the time the person acquires
actual knowledge of the restriction's existence.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 200.113 200.151 200.152 200.153 200.154 200.155 200.156 200.157 200.158 200.159 200.160 200.161 200.162 200.163 200.164
Last modified: August 11, 2007
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