Understanding the Pattern or Practice of Defalcation Regarding Obligations
Definition & Meaning
The term "pattern or practice of defalcation regarding obligations" refers to a consistent history of failing to meet financial responsibilities to insured banks or financial institutions. This can include situations where an individual has defaulted on debts exceeding $50,000, either due to financial irresponsibility or wrongful refusal to fulfill obligations. Examples of financial irresponsibility include failing to repay secured debts or misusing credit to the extent that it leads to significant defaults. Wrongful refusals can involve fraudulent activities, such as providing false financial statements or hiding assets.
Legal Use & context
This term is primarily used in the context of banking and finance law, particularly concerning the employment standards of federal banking employees. It may also relate to civil litigation involving debts and obligations to financial institutions. Individuals facing issues related to defalcation may benefit from legal forms and templates provided by resources like US Legal Forms, which can help them navigate their situations effectively.
Real-world examples
Here are a couple of examples of abatement:
Example 1: An individual who has consistently failed to pay off a credit card debt totaling $60,000, leading to multiple defaults, may be considered to have a pattern of defalcation.
Example 2: A borrower who submitted false financial documents to secure a loan and then failed to repay the amount could be seen as engaging in wrongful refusal of obligations. (hypothetical example)