N.Y. Partnership Law § 25

§ 25. Partnership bound by partner's breach of trust. The partnership\nis bound to make good the loss:\n 1. Where one partner acting within the scope of his apparent authority\nreceives money or property of a third person and misapplies it; and\n 2. Where the partnership in the course of its business receives money\nor property of a third person and the money or property so received is\nmisapplied by any partner while it is in the custody of the partnership.\n