59-09-04. (104) Knowledge

59-09-04. (104) Knowledge

1. Subject to subsection 2, a person has knowledge of a fact if the person has actual

knowledge of a fact; has received a notice or notification of a fact; or from all the facts

and circumstances known to the person at the time in question, has reason to know a

fact.

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 would have been brought to the employee's

attention if the organization had exercised reasonable diligence. An organization

exercises reasonable diligence if the organization maintains reasonable routines for

communicating significant information to the employee having responsibility to act for

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

does 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.