Defalcation


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Related to Defalcation: False token

Defalcation

The misappropriation or Embezzlement of money.

Defalcation implies that funds have in some way been mishandled, particularly where an officer or agent has breached his or her fiduciary duty. It is commonly applied to public officers who fail to account for money received by them in their official capacity, or to officers of corporations who misappropriate company funds for their own private use.

Colloquially, the term is used to mean any type of bad faith, deceit, misconduct, or dishonesty.

defalcation

v. from Latin for deduction, withholding or misappropriating funds held for another, particularly by a public official, or failing to make a proper accounting.

See: bad faith, embezzlement, misappropriation

DEFALCATION, practice, contracts. The reduction of the claim of one of the contracting parties against the other, by deducting from it a smaller claim due from the former to the latter.
     2. The law operates this reduction, in certain cases, for, if the parties die or are insolvent, the balance between them is the only claim; but if they are solvent and alive, the defendant may or may not defalcate at his choice. See Set off. For the etymology of this word, see Bracken. Law Misc. 186; 1 Rawle's R. 291; 3 Binn. R. 135.
     3. Defalcation also signifies the act of a defaulter. The bankrupt act of August 19, 1841, (now repealed), declares that a person who owes debts which have been created in consequence of a defalcation as a public officer, or as executor, administrator, guardian or trustee, or while acting in any other fiduciary capacity, shall not have the benefit of that law.

References in periodicals archive ?
Securities and Exchange Commission (In re Shenman), (341) the Ninth Circuit contrasted non-dischargeability in the context of defalcation by a fiduciary, with non-dischargeability for violation of securities laws.
While the current economic environment and housing market conditions--both of which determine future revenue and earnings potential of title insurers--remains challenging, the company has initiated additional expense and risk management efforts, which have, to some extent, mitigated this impact as evidenced by favorable operating earnings in 2011 and year-to-date in 2012 following a significant operating loss in 2010 caused by a single material agent defalcation.
This committee's best intention can be thwarted by the dishonest lawyer who is engaged in the defalcation, the embezzlement, the theft that title companies have borne the brunt of," said Real Property, Probate and Trust Law Section Chair Peggy Rolando, testifying before the committee.
The life style of some in the clergy does invite comment, and in large dioceses such as Mumbai, there have been open allegations against some priests of defalcation of parish funds, or their refusal to be answerable to anyone on the disposal of Church collections.
Despite the availability of ample evidence of accounting misconduct, the government chose to proceed with a one-count indictment based on destruction of documents, not auditing defalcation.
Three main types are: 1) tax work (which we just mentioned); 2) defalcation and fraud; and 3) financial statement work as it relates to third parties, such as banks.
Making effective internal probes where indicators point to the likelihood of deception in communication is a powerful tool for early detection of defalcation.
Companies occasionally experienced reductions in revenue or operating losses resulting from political risks associated with regime change, social unrest, debt defalcation or currency devaluations.
Additionally, he continued, "Look for a full insurance certification against any defalcation so that if any malfeasance occurs they can recoup.
With respect to demonstrating a pattern or practice of defalcation, someone demonstrates such a pattern under the regulations if they are subject to continuing legal claims arising from two or more uncured defaults alleged to have resulted in losses aggregating more than $50,000 to one or more financial institutions.
The majority of defalcation policies and procedures, though written and established, are not followed.
000 DA et en cas de recidive, il risque des sanctions allant jusqu'a la defalcation de points en championnat, a annonce lundi dernier la Federation algerienne de football a l'issue de la reunion de son Bureau federal a Sidi Moussa (Alger).