456.1-104. Knowledge.
Knowledge.
456.1-104. 1. Subject to subsection 2 of this section, a person hasknowledge 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 thetime in question, has reason to know it.
2. An organization that conducts activities through employees hasnotice or knowledge of a fact involving a trust only from the time theinformation was received by an employee having responsibility to act forthe trust, or would have been brought to the employee's attention if theorganization had exercised reasonable diligence. An organization exercisesreasonable diligence if it maintains reasonable routines for communicatingsignificant information to the employee having responsibility to act forthe trust and there is reasonable compliance with the routines. Reasonablediligence does not require an employee of the organization to communicateinformation unless the communication is part of the individual's regularduties or the individual knows a matter involving the trust would bematerially affected by the information.
(L. 2004 H.B. 1511)Effective 1-01-05