LK. To set off one clalm against another; to deduct a debt due to one from a debt which one owes. Johnson v. Signal Co., 57 N. J. Eq. 79, 40 Atl. 193; Pepper v. warren, 2 Marv. (Del.) 225, 43 Ath 91. This verb corresponds only to the second meaning of “defalcation” as given above; a public officer or trustee who misappropriates or embezzles funds in his hands is not said to "defalk.”
Source: Black's Law Dictionary 2nd Ed (1910)
