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 Code of Alabama
Article 8 - Investment Securities.
Section 7-8-202 - Issuer's Responsibility and Defenses; Notice of Defect or Defense.
Section 7-8-203 - Staleness as Notice of Defect or Defense.
Section 7-8-204 - Effect of Issuer's Restriction on Transfer.
Section 7-8-205 - Effect of Unauthorized Signature on Security Certificate.
Section 7-8-206 - Completion or Alteration of Security Certificate.
Section 7-8-207 - Rights and Duties of Issuer With Respect to Registered Owners.
Section 7-8-208 - Effect of Signature of Authenticating Trustee, Registrar, or Transfer Agent.