J. MILLARD TAWES, Governor                        791

of title or an instrument or an investment security drawn, issued or
indorsed to him or to his order or to bearer or in blank.

(21)   To "honor" is to pay or to accept and pay, or where a credit
so engages to purchase or discount a draft complying with the terms
of the credit.

(22)  "Insolvency proceedings" includes any assignment for the
benefit of creditors or other proceedings intended to liquidate or re-
habilitate the estate of the person involved.

(23)  A person is "insolvent" who either has ceased to pay his
debts in the ordinary course of business or cannot pay his debts as
they become due or is insolvent within the meaning of the federal
bankruptcy law.

(24) "Money" means a medium of exchange authorized or adopted
by a domestic or foreign government as a part of its currency.

(25)  A person has "notice" of a fact when

(a)  he has actual knowledge of it; or

(b)  he has received a notice or notification of it; or

(c)  from all the facts and circumstances known to him at the time
in question he has reason to know that it exists.

A person "knows" or has "knowledge" of a fact when he has actual
knowledge of it. "Discover" or "learn" or a word or phrase of similar
import refers to knowledge rather than to reason to know. The time
and circumstances under which a notice or notification may cease to
be effective are not determined by this Article.

(26)  A person "notifies" or "gives" a notice or notification to an-
other by taking such steps as may be reasonably required to inform
the other in ordinary course whether or not such other actually comes
to know of it. A person "receives" a notice or notification when

(a)  it comes to his attention; or

(b)  it is duly delivered at the place of business through which the
contract was made or at any other place held out by him as the place
for receipt of such communications.

(27)  Notice, knowledge or a notice or notification received by an
organization is effective for a particular transaction from the time
when it is brought to the attention of the individual conducting that
transaction, and in any event from the time when it would have been
brought to his attention if the organization had exercised due dili-
gence. An organization exercises due diligence if it maintains rea-
sonable routines for communicating significant information to the
person conducting the transaction and there is reasonable compliance
with the routine. Due diligence does not require an individual acting
for the organization to communicate information unless such com-
munication is part of his regular duties or unless he has reason to
know of the transaction and that the transaction would be materially
affected by the information.

(28)  "Organization" includes a corporation, government or gov-
ernmental sub-division or agency, business trust, estate, trust, part-
nership or association, two or more persons having a joint or com-
mon interest, or any other legal or commercial entity.