55-541.04 - Knowledge. - Virginia Statutes

§ 55-541.04. Knowledge.

A. Subject to subsection B, a person has knowledge 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 inquestion, has reason to know it.

B. An organization that conducts activities through employees has notice orknowledge of a fact involving a trust only from the time the information wasreceived by an employee having responsibility to act for the trust, or wouldhave been brought to the employee's attention if the organization hadexercised reasonable diligence. An organization exercises reasonablediligence if it maintains reasonable routines for communicating significantinformation to the employee having responsibility to act for the trust andthere is reasonable compliance with the routines. Reasonable diligence doesnot require an employee of the organization to communicate information unlessthe communication is part of the individual's regular duties or theindividual knows a matter involving the trust would be materially affected bythe information.

(2005, c. 935.)