2006 New York Code - Demand That Issuer Not Register Transfer.

 
  Section 8--403. Demand that Issuer Not Register Transfer.
    (a) A  person  who  is an appropriate person to make an indorsement or
  originate an  instruction  may  demand  that  the  issuer  not  register
  transfer  of  a  security  by communicating to the issuer a notification
  that identifies the registered owner and the issue of which the security
  is a part and provides an address for  communications  directed  to  the
  person making the demand. The demand is effective only if it is received
  by  the issuer at a time and in a manner affording the issuer reasonable
  opportunity to act on it.
    (b) If a certificated security in registered form is presented  to  an
  issuer  with  a  request  to  register  transfer  or  an  instruction is
  presented to an issuer  with  a  request  to  register  transfer  of  an
  uncertificated  security  after  a  demand  that the issuer not register
  transfer has become effective, the issuer shall promptly communicate, to
  the person who initiated the demand  at  the  address  provided  in  the
  demand  and to the person who presented the security for registration of
  transfer  or  initiated  the  instruction  requesting  registration   of
  transfer, a notification stating that:
         (1) the certificated security has been presented for registration
             of  transfer  or the instruction for registration of transfer
             of the uncertificated security has been received;
         (2) a demand that the issuer not register transfer had previously
             been received; and
         (3) the issuer will  withhold  registration  of  transfer  for  a
             period of time stated in the notification in order to provide
             the  person who initiated the demand an opportunity to obtain
             legal process or an indemnity bond.
    (c) The period described in subsection (b)(3) may not exceed  30  days
  after  the  date of communication of the notification.  A shorter period
  may be specified by the issuer if it is not manifestly unreasonable.
    (d) An issuer is not liable to a person who initiated  a  demand  that
  the  issuer  not  register transfer for any loss the person suffers as a
  result  of  registration  of  a  transfer  pursuant  to   an   effective
  indorsement  or  instruction if the person who initiated the demand does
  not, within the time stated in the issuer's communication, either:
         (1) obtain an appropriate restraining order, injunction, or other
             process from a court of competent jurisdiction enjoining  the
             issuer from registering the transfer; or
         (2) file  with  the  issuer  an indemnity bond, sufficient in the
             issuer's judgment to protect  the  issuer  and  any  transfer
             agent,  registrar, or other agent of the issuer involved from
             any loss it or they may suffer by refusing  to  register  the
             transfer.
    (e) This  section  does  not  relieve  an  issuer  from  liability for
  registering transfer pursuant to an indorsement or instruction that  was
  not effective.