§ 7-12-25. 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 or her 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.
(R.P.L. 1957, ch. 74, § 14.)