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 The bankrupt act of August 19, 1841, (now repealed), declares that a person who owes debts which have been created in consequence of a defalcation as a public officer, or as executor, administrator, guardian or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 ?
The cases enumerated in the statute, the defalcation of a public officer, executor, administrator, guardian, or trustee, are not cases of implied but special trusts, and the "other fiduciary capacity" mentioned must mean the same class of trusts.
Although Bumsted paints a detailed picture of the defalcation, there are many people, events, and other topics about which the reader would like to learn a great deal more.
In 1997, a mediator was brought in and an inquiry into the Clench Defalcation was begun.
It had died in a series of quarrels over money, in the defalcation of a treasurer, in a feud between the Diffenbaughs and Preacher Cameron, and also to some extent in the growth of rival orders.
All the investigations of Reagan-Bush, malfeasance and defalcation, from Iran/contra to B.C.C.I., were given the quietus once Clinton came to office.
"In most businesses that have a high degree of automation, the temptation for defalcation will increase if the employee is suspicious about his or her continued employment," says IBM's Mr.
Fidelity is the loss of property, including loss of money because of employee, director, or officer defalcation; physical loss of money or securities also can occur--for instance, theft of cash or checks at a convention.
* Conduct, supervise, or coordinate investigations of infractions of company policies and procedures, especially involving employee defalcation, property loss, conflicts of interest, and matters of grave misconduct not covered in other classifications.
Authorities said thousands of cases relating to corruption, defalcation and bribery have been pending in the court for years.
Bien que la Federation et la Ligue aient tente de se montrer fermes interdisant le recrutement a certains clubs ainsi que la defalcation de points pour d'autres (RC Relizane et RC Arbaa), la situation n'a pas connu la moindre amelioration.
In the bankruptcy case of an individual debtor, Bankruptcy Code [section] 523(a)(4) excludes from discharge debts the individual incurred for fraud or defalcation while acting as a fiduciary.
Claims relating to the performance of government and NFP audits frequently allege the CPA failed to detect or report a defalcation or a misstatement in the financial statements.