The partnership is bound to make good the loss:
I. Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it; and
II. 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. 1973, 378:1, eff. Aug. 29, 1973.