Marginal note:Restrictions and constraints
88 (1) If a security certificate issued by a bank is or becomes subject to
(a) a restriction on its transfer other than a constraint under Part VII, or
(b) a lien in favour of the bank,
the restriction or lien is ineffective against a transferee of the security who has no actual knowledge of it, unless the restriction or lien or a reference to it is noted conspicuously on the security certificate.
Marginal note:Limit on restriction
(2) Where any of the issued shares of a bank are or were part of a distribution to the public and remain outstanding and are held by more than one person, the bank shall not have a restriction on the issue, transfer or ownership of its shares of any class or series except by way of a constraint under Part VII.
(3) If a body corporate that is continued as a bank under this Act has outstanding security certificates and the words “private company” or “private corporation” appear on the certificates, those words are deemed to be a notice of a restriction or lien for the purposes of subsection (1).
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