KRS 362.1-102: Knowledge and notice.

(1) A person knows a fact if the person has actual knowledge of it.

(2) A person has notice of a fact if the person:

(a) Knows of it;

(b) Has received a notification of it;

(c) Has reason to know it exists from all of the facts known to the person at the

time in question; or

(d) By reason of a filing or recording to the extent provided by and subject to the

limitations set forth in KRS 362.1 -303(4) or (5), 362.1 -704(3), or 362.1 -

805(3).

(3) A person notifies or gives a notification to another by taking steps re asonably

calculated to inform the other person in ordinary course, whether or not the other

person obtains knowledge of it.

(4) A person receives a notification when the notification:

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

(b) Is duly delivered at the per son's place of business or at any other place held

out by the person as a place for receiving communications.

(5) Except as otherwise provided in subsection (6) of this section, a person other than

an individual knows, has notice, or receives a notification of a fact for purposes of a

particular transaction when the individual conducting the transaction knows, has

notice, or receives a notification of the fact, or in any event when the fact would

have been brought to the individual's attention if the person had exercised

reasonable diligence. The person exercises reasonable diligence if it maintains

reasonable routines for communicating significant information to the individual

conducting the transaction and there is reasonable compliance with the routines.

Reasonable diligence does not require an individual acting for the person 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.

(6) A partner's knowledge, notice, or receipt of a notification of a fact relating to the

partnership is effective immediately as knowledge by, notice to, or receipt of a

notification by the partnership, except in the case of a fraud on the partnership

committed by or with the consent of that partner.