defalcation

defalcation definition - business

defalcation

Misappropriation of trust funds or funds held in any fiduciary capacity. Defalcation includes innocent as well as intentional or negligent misappropriation. Thus, a fiduciary may be guilty of defalcation without having intent to defraud.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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