[§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 theperson:

(1)  Knows the fact;

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

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

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

(d)  A person receives a notification when thenotification:

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

(2)  Is duly delivered at the person's place ofbusiness or at any other place held out by the person as a place for receivingcommunications.

(e)  An entity knows, has notice, or receives anotification of a fact for purposes of a particular transaction when theindividual conducting the transaction for the entity knows, has notice, orreceives a notification of the fact, or in any event when the fact would havebeen brought to the individual's attention had the entity exercised reasonablediligence.  An entity exercises reasonable diligence if it maintains reasonableroutines for communicating significant information to the individual conductingthe transaction for the entity and there is reasonable compliance with theroutines. Reasonable diligence does not require an individual acting for theentity to communicate information unless the communication is part of theindividual's regular duties or the individual has reason to know of thetransaction and that the transaction would be materially affected by theinformation. [L 1996, c 92, pt of §1]