ABSTRACT
Similarly, where funds are paid to a borrower in order to advance a specific purpose, to such an extent that the funds do not become the general property of the borrower, and the purpose of the loan has not been achieved, the funds become subject to a resulting trust in favour of the lender. Accordingly, the borrower’s trustee-in-bankruptcy or assignee of the debtor, with notice of the stipulated purpose, takes the property subject to the trust: see Barclays Bank v Quistclose.
