N.Y. Partnership Law § 25: Partnership bound by partner's breach of trust

§ 25. 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 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.