As Amended
SEC. 79-12-27. Partnership bound by partner's breach of trust.
The partnership is bound to make good the loss:
(a) Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and
(b) Where the partnership in the course of its business receives money or property of a third person and the money or property so received is misapplied by any partner while it is in the custody of the partnership.
SOURCES: Laws, 1976, ch. 407, Sec. 14, eff from and after April 1, 1977.