Definition of Defalcation:
In a third and less common definition, defalcation may also refer to the consolidation of two opposing debts carried by two related parties, to produce a total amount. As an example, if person A has a $100 obligation to company XYZ, but the company also owes person A $14, defalcation of these two debts becomes $86 due by person A to company XYZ.
Diversion, misapplication, misappropriation, misuse, or theft of funds by some executive or high official who is entrusted with those funds. Similar act by a lower-level employee or functionary is called embezzlement.
In legal terms, defalcation predominantly refers to the theft, misuse or misappropriation of money or funds held by an official trustee, or other senior-level fiduciary. Defalcation is a form of embezzlement, either through the misallocation of funds, or the failure to account for received funds. Further, defalcation refers to the sum of monies misappropriated. The term sees frequent use in the context of the title insurance business. In these cases, a title agent improperly uses the escrow funds which have an intended purpose of completing covered transactions.
Synonyms of Defalcation
Abuse, Abuse of office, Arrear, Arrearage, Arrears, Befoulment, Break, Conversion, Corrupt administration, Debasement, Decline, Default, Defect, Defectiveness, Deficiency, Deficit, Defilement, Delinquency, Desecration, Discontinuity, Diversion, Embezzlement, Failing, Failure, Falling short, Fault, Fouling, Gap, Hiatus, Imperfection, Inadequacy, Inferiority, Insufficiency, Interval, Lack, Lacuna, Laxness, Maladministration, Malfeasance, Malpractice, Malversation, Misapplication, Misappropriation, Misconduct, Misemployment, Misfeasance, Mishandling, Mismanagement, Missing link, Misusage, Misuse, Need, Negligence, Omission, Outage, Paucity, Peculation, Perversion, Pilfering, Pollution, Poor stewardship, Poverty, Profanation, Prostitution, Remissness, Scant, Scantiness, Scarceness, Short measure, Shortage, Shortcoming, Shortfall, Slackness, Slump, Ullage, Underage, Violation, Want, Wantage
How to use Defalcation in a sentence?
- Defalcation may also refer to the consolidation of two opposing debts carried by two related parties, to produce a total amount.
- The board of directors held Bruce in the highest esteem, and considered his family ties to the company made his loyalties unimpeachable, therefore they were all quite astounded by his defalcation of funds for expensive personal hobbies.
- He was arrested for defalcation and would be brought in front of a judge and that would scare him, because he thought judges were scary.
- Defalcation is a form of embezzlement, either through the misallocation of funds, or the failure to account for received funds.
- Defalcation predominantly refers to the theft, misuse or misappropriation of money or funds held by an official trustee, or other senior-level fiduciary.
- Many high ranking companies have turned out to fall victim to defalcation , when a higher up in the company spends funds, or a lower level employee embezzles.
Meaning of Defalcation & Defalcation Definition