diff --git a/contracts/libraries/TokenLib.sol b/contracts/libraries/TokenLib.sol
index aecdac0d4..e2eedff05 100644
--- a/contracts/libraries/TokenLib.sol
+++ b/contracts/libraries/TokenLib.sol
@@ -432,11 +432,9 @@ library TokenLib {
             bool isValid = false;
             bool isForceValid = false;
             // Use the local variables to avoid the stack too deep error
-            transfersFrozen = false; // bool unarchived = false;
             bytes32 appCode;
             for (uint256 i = 0; i < modules.length; i++) {
                 if (!modulesToData[modules[i]].isArchived) {
-                    transfersFrozen = true;
                     (ITransferManager.Result valid, bytes32 reason) = ITransferManager(modules[i]).verifyTransfer(from, to, value, data);
                     if (valid == ITransferManager.Result.INVALID) {
                         isInvalid = true;
@@ -448,9 +446,8 @@ library TokenLib {
                     }
                 }
             }
-            // If no unarchived modules, return true by default
             // Use the local variables to avoid the stack too deep error
-            isValid = transfersFrozen ? (isForceValid ? true : (isInvalid ? false : isValid)) : true;
+            isValid = isForceValid ? true : (isInvalid ? false : isValid);
             return (isValid, isValid ? bytes32(StatusCodes.code(StatusCodes.Status.TransferSuccess)): appCode);
         }
         return (false, bytes32(StatusCodes.code(StatusCodes.Status.TransfersHalted)));
diff --git a/contracts/tokens/SecurityToken.sol b/contracts/tokens/SecurityToken.sol
index fa915e5e1..f3dd30365 100644
--- a/contracts/tokens/SecurityToken.sol
+++ b/contracts/tokens/SecurityToken.sol
@@ -671,13 +671,13 @@ contract SecurityToken is ERC20, ReentrancyGuard, SecurityTokenStorage, IERC1594
             bool isInvalid;
             bool isValid;
             bool isForceValid;
-            bool unarchived;
             address module;
             uint256 tmLength = modules[TRANSFER_KEY].length;
             for (uint256 i = 0; i < tmLength; i++) {
                 module = modules[TRANSFER_KEY][i];
                 if (!modulesToData[module].isArchived) {
-                    unarchived = true;
+                    // refer to https://github.com/PolymathNetwork/polymath-core/wiki/Transfer-manager-results
+                    // for understanding what these results mean
                     ITransferManager.Result valid = ITransferManager(module).executeTransfer(_from, _to, _value, _data);
                     if (valid == ITransferManager.Result.INVALID) {
                         isInvalid = true;
@@ -688,8 +688,7 @@ contract SecurityToken is ERC20, ReentrancyGuard, SecurityTokenStorage, IERC1594
                     }
                 }
             }
-            // If no unarchived modules, return true by default
-            return unarchived ? (isForceValid ? true : (isInvalid ? false : isValid)) : true;
+            return isForceValid ? true : (isInvalid ? false : isValid);
         }
         return false;
     }
diff --git a/test/o_security_token.js b/test/o_security_token.js
index 71afe9be5..85a70ad02 100644
--- a/test/o_security_token.js
+++ b/test/o_security_token.js
@@ -519,16 +519,6 @@ contract("SecurityToken", async (accounts) => {
             let tx = await I_SecurityToken.removeModule(I_GeneralTransferManager.address, { from: token_owner });
             assert.equal(tx.logs[0].args._types[0], transferManagerKey);
             assert.equal(tx.logs[0].args._module, I_GeneralTransferManager.address);
-            await I_SecurityToken.issue(account_investor1, new BN(web3.utils.toWei("500")), "0x0", { from: token_owner });
-            let _canTransfer = await I_SecurityToken.canTransfer.call(account_investor2, new BN(web3.utils.toWei("200")), "0x0", {from: account_investor1});
-
-            assert.isTrue(_canTransfer[0]);
-            assert.equal(_canTransfer[1], 0x51);
-            assert.equal(_canTransfer[2], empty_hash);
-
-            await I_SecurityToken.transfer(account_investor2, new BN(web3.utils.toWei("200")), { from: account_investor1 });
-
-            assert.equal((await I_SecurityToken.balanceOf(account_investor2)).div(new BN(10).pow(new BN(18))).toNumber(), 200);
             await revertToSnapshot(key);
         });
 
@@ -581,12 +571,8 @@ contract("SecurityToken", async (accounts) => {
             assert.equal(moduleData[3], true);
         });
 
-        it("Should successfully issue tokens while GTM archived", async () => {
-            let key = await takeSnapshot();
-            await I_SecurityToken.issue(one_address, new BN(100).mul(new BN(10).pow(new BN(18))), "0x0", { from: token_owner, gas: 500000 });
-            let balance = await I_SecurityToken.balanceOf(one_address);
-            assert.equal(balance.div(new BN(10).pow(new BN(18))).toNumber(), 100);
-            await revertToSnapshot(key);
+        it("Should fail to issue (or transfer) tokens while all TM are archived archived", async () => {
+            await catchRevert(I_SecurityToken.issue(one_address, new BN(100).mul(new BN(10).pow(new BN(18))), "0x0", { from: token_owner }));
         });
 
         it("Should successfully unarchive the general transfer manager module from the securityToken", async () => {