ABSTRACT
Trusts are often used to take security in commercial transactions, not least because of the advantages which they offer in the event that a party to a contract goes into insolvency. Pension funds and unit trusts are both types of trust which are used in investment markets, and which are particularly signifi cant in fi nancial markets. One of the most signifi cant forms of trust which are used in banking transactions are Quistclose trusts, which can provide a lender of money with a proprietary interest in the loan moneys in the event that the borrower goes into insolvency. The analysis of those trusts forms the fi rst half of this chapter. The second half of the chapter considers the overlap between the principles of equity and other commercial uses of trusts structures.
