Defalcation

^ 1.

Eeduction of a claim by allowance of a counter-claim. Setting off another account or another contract.* Defalcation was unknown at common law, according to which mutual debts were distinct and inextinguishable except by actual payment or release.^ See Eecoup; Set-off. " Defalcate " is the verb; " defalk " is obsolete."

2.

Misappropriation of trust funds — by a public or corporate officer.

Defaulter.

One whose peculations have brought him within the cognizance of the law, to the extent, at least, of excluding him from a public trust. To apply the epithet to a person who is free from that stigma is defamatory.'