lity. (1) The partnership is bound to make good the loss:

1. (a) Where one partner acting within the scope of such partner's apparent authority receives money or property of a third person and misapplies it; and
2. (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.

Source: L. 31: p. 652, § 14. CSA: C. 123, § 14. CRS 53: § 104-1-14. C.R.S. 1963: § 104-1-14. L. 2004: (1)(a) amended, p. 1423, § 76, effective July 1.