South Carolina License Law
In South Carolina, which of the following best describes 'conversion' of trust funds?
AConverting trust account interest to the broker's benefit
BMisappropriating client funds held in trust for personal use✓ Correct
CConverting a trust account from one bank to another
DTransferring funds between two client trust accounts
Explanation
Conversion is the illegal act of taking client funds held in trust and using them for personal purposes. It is theft and a serious license law violation that can result in license revocation and criminal prosecution.
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