Effect of issuer's restrictions on transfer

KRS § 355.8-204, under UNIFORM COMMERCIAL CODE.

KRS § 355.8-204

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.