Effect of issuer's restriction on transfer

Colo. Rev. Stat. § 4-8-204, under Uniform Commercial Code.

Colo. Rev. Stat. § 4-8-204

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.

Source: L. 96: Entire article R&RE, p. 218, � 2, effective July 1.

Editor's note: This section is similar to former � 4-8-204 as it existed prior to 1996.