§ 36C-1-104. Knowledge. - North Carolina Statutes

§ 36C‑1‑104. Knowledge.

(a)        Subject tosubsection (b) of this section, a person has knowledge of a fact if the person:

(1)        Has actual knowledgeof it;

(2)        Has received noticeor notification of it; or

(3)        From all the factsand circumstances known to the person at the time in question, has reason toknow it.

(b)        An organizationthat conducts activities through employees has notice or knowledge of a factinvolving a trust only from the time the information was received by anemployee having responsibility to act for the trust, or would have been broughtto the employee's attention if the organization had exercised reasonablediligence. An organization exercises reasonable diligence if it maintainsreasonable routines for communicating significant information to the employeehaving responsibility to act for the trust and there is reasonable compliancewith the routines. Reasonable diligence does not require an employee of theorganization to communicate information unless the communication is part of theemployee's regular duties or the employee knows a matter involving the trustwould be materially affected by the information. (2005‑192, s. 2.)