Alaska License Law

Which of the following actions by an Alaska licensee constitutes 'conversion' of trust funds?

ADepositing earnest money in a trust account within 3 days
BUsing a client's trust funds for the broker's personal expenses✓ Correct
CTransferring funds between two different client trust accounts
DDepositing funds into a non-interest-bearing account

Explanation

Conversion is the unauthorized use of a client's funds for any purpose other than those specified by the client. Using trust funds for personal or business expenses is a serious violation that can result in license revocation, criminal charges, and civil liability.

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