84-8-209. Issuer's lien. A lien in favor of an issuer upon a certificated security is valid against a purchaser only if the right of the issuer to the lien is noted conspicuously on the security certificate.
History: L. 1996, ch. 202, § 52; July 1.
KANSAS COMMENT, 1996
This section is derived from the former 84-8-103 which has been modified to refer to "certificated" securities. The other changes are minor and stylistic. The section is identical to the Official Text.
This section is taken from § 15 of the Uniform Stock Transfer Act, a provision which had been omitted by Kansas. A purchaser of certificated securities is protected from unknown liens of the issuer by the requirement of conspicuous notation of any such lien on the security. See 84-1-201(10) for the definition of "conspicuous." Unlike 84-8-204, the purchaser's knowledge of the lien does not matter if the lien is not conspicuously noted on the certificate.
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