§ 17304 Trust Obligation Loss Definition

• •A 'loss' is about losing trust duties, not just money.
• •It applies to any member in California.
• •The loss happens when an officer, director, trustee, stockholder, manager, or employee cheats, steals, or misuses the trust duties.

A charity in California has a director who takes money meant for a school program and uses it for personal expenses.

Because the director stole the money, the charity loses its trust duties, and this law says that counts as a 'loss' under the statute.