KRS 355.1-202: Notice -- Knowledge.

(1) Subject to subsection (6) of this section, 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 n otice 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) of this section, 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 significan t 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 individ ual's regular duties or the individual

has reason to know of the transaction and that the transaction would be materially

affected by the information.