554.1202 Notice — knowledge.
1. Subject to subsection 6, a person has “”notice”” of a fact if the person:
a. has actual knowledge of it;
b. has received a notice or notification of it; or
c. from all the facts and circumstances known to the person at the time in question, has
reason to know that it exists.
2. “”Knowledge”” means actual knowledge. “”Knows”” has a corresponding meaning.
3. “”Discover””, “”learn””, or words of similar import refer to knowledge rather than to reason
to know.
4. 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.
5. Subject to subsection 6, a person “”receives”” a notice or notification when:
a. it comes to that person’s attention; or
b. 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.
6. 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.
2007 Acts, ch 41, §13, 57
Referred to in §554.12106