57A-8-204. Effect of issuer's restriction on transfer.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. Source: SL 1998, ch 284, §1.
South Dakota Legal Code