[§428-102]  Knowledge and notice.  (a) 
A person knows a fact if the person has actual knowledge of it.



(b)  A person has notice of a fact if the
person:



(1)  Knows the fact;



(2)  Has received a notification of the fact; or



(3)  Has reason to know the fact exists from all of
the facts known to the person at the time in question.



(c)  A person notifies or gives a notification
of a fact to another by taking steps reasonably required to inform the other
person in ordinary course, whether or not the other person knows the fact.



(d)  A person receives a notification when the
notification:



(1)  Comes to the person's attention; or



(2)  Is duly delivered at the person's place of
business or at any other place held out by the person as a place for receiving
communications.



(e)  An entity knows, has notice, or receives a
notification of a fact for purposes of a particular transaction when the
individual conducting the transaction for the entity knows, has notice, or
receives a notification of the fact, or in any event when the fact would have
been brought to the individual's attention had the entity exercised reasonable
diligence.  An entity exercises reasonable diligence if it maintains reasonable
routines for communicating significant information to the individual conducting
the transaction for the entity and there is reasonable compliance with the
routines. Reasonable diligence does not require an individual acting for the
entity 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. [L 1996, c 92, pt of §1]