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.
Structure Arkansas Code
Title 4 - Business and Commercial Law
Subtitle 1 - Uniform Commercial Code
Chapter 8 - Investment Securities
§ 4-8-202. Issuer's responsibility and defenses — Notice of defect or defense
§ 4-8-203. Staleness as notice of defect or defense
§ 4-8-204. Effect of issuer's restriction on transfer
§ 4-8-205. Effect of unauthorized signature on security certificate
§ 4-8-206. Completion or alteration of security certificate
§ 4-8-207. Rights and duties of issuer with respect to registered owners
§ 4-8-208. Effect of signature of authenticating trustee, registrar, or transfer agent