Section 1--202. Notice; Knowledge.

(a) Subject to subsection (f), a person has "notice" of a fact if the
person:

(1) has actual knowledge of it;

(2) has received a notice or notification of it; or

(3) from all the facts and circumstances known to the person at the
time in question, has reason to know that it exists.

(b) "Knowledge" means actual knowledge. "Knows" has a corresponding
meaning.

(c) "Discover", "learn", or words of similar import refer to knowledge
rather than to reason to know.

(d) 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.

(e) Subject to subsection (f), a person "receives" a notice or
notification when:

(1) it comes to that person's attention; or

(2) 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.

(f) 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.