Delaware License LawIntermediateDelaware Exam

A Delaware licensee who places a client's funds in the licensee's personal bank account is guilty of:

AConversion
BCommingling
CConversion and comminglingCorrect
DNeither — it is acceptable if the client consents

Why Conversion and commingling Is Correct

Answer C: Conversion and commingling

Commingling is mixing client funds with personal funds. If the licensee also spends or uses the funds for personal purposes, it becomes conversion (theft of funds).

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