§ 7-12-14. Interpretation of knowledge and notice.
(a) A person has "knowledge" of a fact within the meaning of §§ 7-12-12 7-12-55 not only when he or she has actual knowledge of it, but also when he or she has knowledge of any other facts that in the circumstances show bad faith.
(b) A person has "notice" of a fact within the meaning of §§ 7-12-12 7-12-55 when the person who claims the benefit of the notice:
(1) States the fact to the person; or
(2) Delivers through the mail, or by other means of communication, a written statement of the fact to the person or to a proper person at his or her place of business or residence.
(R.P.L. 1957, ch. 74, § 3.)