R.I. Gen. Laws
Rhode Island General Laws

R.I. Gen. Laws § 6A-8-204 (2026)

Effect of issuer’s restriction on transfer

✓ current as of July 2026
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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.

Notes of Decisions
Cited in 1 case, 1985–1985 · leading case: Chase Manhattan Bank, N.A. v. Coleman, 496 A.2d 935 (R.I. 1985).
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Chase Manhattan Bank, N.A. v. Coleman, 496 A.2d 935 (R.I. 1985). “” Also, § 6A-8-204 directs that a restriction on transfer of stock imposed by an issuer will be ineffective unless “noted conspicuously on the security.”
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