§ 4-1-202 — Notice - knowledge

(a) Subject to subsection (f) of this section, a
person has notice of a fact if the person:

(1) Has actual knowledge of it;

(2) Has received a notice or notification of it; or

(3) From all the facts and circumstances known to the person at the time in
question, has reason to know that it exists.

(b) Knowledge means actual knowledge.

(c) Discover, learn, or words of similar import refer to knowledge rather
than to notice.

(d) A person notifies or gives a notice or notification to another by taking
such steps as may be reasonably required to inform the other in ordinary course,
whether or not the other person actually comes to know of it.

(e) Subject to subsection (f) of this section, a person receives a notice or
notification when:

(1) It comes to that person's attention; or

(2) It is duly delivered in a form reasonable under the circumstances at the
place of business through which the contract was made or at another location held
out by that person as the place for receipt of such communications.

(f) Notice, knowledge, or a notice or notification received by an organization
is effective for a particular transaction from the time it is brought to the attention of
the individual conducting that transaction and, in any event, from the time it would
have been brought to the individual's attention if the organization had exercised
due diligence. An organization exercises due diligence if it maintains reasonable
routines for communicating significant information to the person conducting the
transaction and there is reasonable compliance with the routines. Due diligence
does not require an individual acting for the organization to communicate
information unless the communication is part of the individual's regular duties or
the individual has reason to know of the transaction and that the transaction would
be materially affected by the information.

Legislative History

Source: L. 2006: Entire article R&RE, p. 463, � 1, effective September 1.