14-10104. Knowledge
A. Subject to subsection B, a person has knowledge of a fact if any of the
following apply:
1. The person has actual knowledge of it.
2. The person has received a notice or notification of it.
3. From all the facts and circumstances known to the person at the time in
question, the person has reason to know it.
B. An organization that conducts activities through employees has notice or
knowledge of a fact involving a trust only from the time the information was received by
an employee having responsibility to act for the trust or would have been brought to the
employee's attention if the organization had exercised reasonable diligence. An
organization exercises reasonable diligence if it maintains reasonable routines for
communicating significant information to the employee having responsibility to act for
the trust and there is reasonable compliance with the routines. Reasonable diligence does
not require an employee of the organization to communicate information unless the
communication is part of the individual's regular duties or the individual knows a matter
involving the trust would be materially affected by the information.
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