Commercial Code section 8204

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 either of the following applies:

(1)

The security is certificated and the restriction is noted conspicuously on the security certificate.

(2)

The security is uncertificated and the registered owner has been notified of the restriction.

Source: Section 8204, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=8204.­ (updated Jan. 1, 1997; accessed Jun. 25, 2025).

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Verified:
Jun. 25, 2025

§ 8204's source at ca​.gov