Section 17304 Of Article 1. Definitions From California Financial Code >> Division 6. >> Chapter 2.5. >> Article 1.

. "Loss," within the meaning of this chapter, means the loss of trust obligations held by a member within the State of California as a result of the fraudulent or dishonest abstraction, misappropriation, or embezzlement of trust obligations by an officer, director, trustee, stockholder, manager, or employee of a member.