KRS 362.215: Partnership bound by partner's breach of trust.

The partnership is bound to make good the loss:

(1) Where one partner acting within the scope of his apparent authority receives money

or property of a third person and misapplies it; and

(2) Where the partnership in the course of its business receives m oney 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.