(8-204) Effect of issuer's restriction on transfer

N.D.C.C. § 41-08-20 — under Investment Securities.

N.D.C.C. § 41-08-20

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.