KRS 386B.1-020: Knowledge.

(1) Subject to subsection (2) of this section, a person has knowledge 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 it.

(2) An organization that conducts activities through employees has notice or knowledge

of a fact involving a trust only from the time the information was received by an

employee having responsibility to act for the trust, or wou ld have been brought to

the employee's attention if the organization had exercised reasonable diligence. An

organization exercises reasonable diligence if it maintains reasonable routines for

communicating significant information to the employee having res ponsibility to act

for the trust and there is reasonable compliance with the routines. Reasonable

diligence shall not require an employee of the organization to communicate

information unless the communication is part of the individual's regular duties or

the individual knows a matter involving the trust would be materially affected by

the information.