§ 6A-1-202 - Notice – Knowledge.
SECTION 6A-1-202
§ 6A-1-202 Notice – Knowledge. –(a) Subject to subsection (f), 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 personat the time in question, has reason to know that it exists.
(b) "Knowledge" means actual knowledge. "Knows" has acorresponding meaning.
(c) "Discover", "learn", or words of similar import refer toknowledge rather than to reason to know.
(d) A person "notifies" or "gives" a notice or notificationto another person by taking such steps as may be reasonably required to informthe other person in ordinary course, whether or not the other person actuallycomes to know of it.
(e) Subject to subsection (f), a person "receives" a noticeor notification when:
(1) It comes to that person's attention; or
(2) It is duly delivered in a form reasonable under thecircumstances at the place of business through which the contract was made orat another location held out by that person as the place for receipt of suchcommunications.
(f) Notice, knowledge, or a notice or notification receivedby an organization is effective for a particular transaction from the time itis 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'sattention if the organization had exercised due diligence. An organizationexercises due diligence if it maintains reasonable routines for communicatingsignificant information to the person conducting the transaction and there isreasonable compliance with the routines. Due diligence does not require anindividual acting for the organization to communicate information unless thecommunication is part of the individual's regular duties or the individual hasreason to know of the transaction and that the transaction would be materiallyaffected by the information.