35-8-219. Knowledge and notice. (1) A person knows a fact if the person has actual knowledge of the fact.
(2) A person has notice of a fact if the person:
(a) knows the fact;
(b) has received a notification of the fact; or
(c) has reason to know that the fact exists from other facts known to the person at the time in question.
(3) A person notifies or gives a notification of a fact to another by taking steps reasonably required to inform the other person, whether or not the other person knows the fact.
(4) A person receives a notification when the notification:
(a) comes to the person's attention; or
(b) is delivered at the person's place of business or at any other place held out by the person as a place for receiving communications.
(5) (a) An entity knows, has notice, or receives a notification of a fact for purposes of a particular transaction:
(i) when an individual conducting the transaction for the entity knows, has notice, or receives a notification of the fact; or
(ii) when the fact would have been brought to the individual's attention had the entity exercised reasonable diligence.
(b) (i) 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.
(ii) 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 to know that the transaction would be materially affected by the information.
History: En. Sec. 12, Ch. 302, L. 1999.