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:

Terms Used In North Dakota Code 41-08-20

  • Person: means an individual, organization, government, political subdivision, or government agency or instrumentality. See North Dakota Code 1-01-49

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.