Etymology:
Meaning:
Origin:
The word "defalcation" originated in the Latin verb "defalcare," which literally means "to cut off with a sickle." In the context of finance, the term came to refer to the illegal removal of money from a fund or account.
Initially, "defalcation" was used to describe the act of cutting off a portion of a debt or obligation. Over time, its meaning evolved to encompass the more general concept of financial fraud and embezzlement. Today, it primarily refers to the unauthorized misappropriation of funds by a person entrusted with their management.
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