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Ch1-2 Fiduciary Duty
Fiduciary Duty defintions
| Term | Definition |
|---|---|
| Care | A licensee must use their skill and expertise to the advantage of their principal. |
| Loyalty | Requires an agent to place the interests of their principal above all others, including the agent's own. |
| Accounting | Able to account for all funds received from or on behalf of the principal. |
| Commingling | The misdeposit of trust funds into any account that is not a designated trust fund. |
| Conversion | The misuse of trust funds by converting the funds of the client to personal use. |
| Obedience | Requires agents to act in good faith, at all times, according to the instructions and wishes of the principal, within legal limits. |
| Disclosure | Requires the agent to keep the principal informed of all material facts that the agent knows or should know that might impact the principal's choosing of a particular course of action, regardless of being favorable or unfavorable. |
| Fiduciary | Involving trust, especially with regard to the relationship between a trustee and a beneficiary. |
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