TITLE 6A

Uniform Commercial Code

CHAPTER 6A-1

General Provisions

PART 6A-1-201

General Definitions and Principles of Interpretation

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 person

at the time in question, has reason to know that it exists.



   (b) "Knowledge" means actual knowledge. "Knows" has a

corresponding meaning.



   (c) "Discover", "learn", or words of similar import refer to

knowledge rather than to reason to know.



   (d) A person "notifies" or "gives" a notice or notification

to another person by taking such steps as may be reasonably required to inform

the other person in ordinary course, whether or not the other person actually

comes to know of it.



   (e) Subject to subsection (f), a person "receives" a notice

or notification when:



   (1) It comes to that person's attention; or



   (2) It is duly delivered in a form reasonable under the

circumstances at the place of business through which the contract was made or

at another location held out by that person as the place for receipt of such

communications.



   (f) Notice, knowledge, or a notice or notification received

by an organization is effective for a particular transaction from the time it

is 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's

attention if the organization had exercised due diligence. An organization

exercises due diligence if it maintains reasonable routines for communicating

significant information to the person conducting the transaction and there is

reasonable compliance with the routines. Due diligence does not require an

individual acting for the organization 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.



History of Section.

(P.L. 1960, ch. 147, § 1; P.L. 2007, ch. 19, § 2; P.L. 2007, ch. 34,

§ 2.)