N.Y. Uniform Commercial Code 8-204 – Effect of Issuer's Restriction on Transfer
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Section 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:
(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; or
(3) the restriction is on the transfer of a cooperative interest and the restriction is set forth in the cooperative record.