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8 Lender Liability as a Constructive Trustee under English Law

From: Principles of Lender Liability

Parker Hood

From: Oxford Legal Research Library (http://olrl.ouplaw.com). (c) Oxford University Press, 2021. All Rights Reserved.date: 20 October 2021

Subject(s):
Civil liability of lenders — Criminal liability of lenders — Breach of confidentiality — Dishonest assistance — Knowing receipt — Money and inter-state obligations — Claims
8.01 As indicated previously, unless a lender is an express (or constructive) trustee of funds, it will not, normally, be under any of the obligations of trusteeship,1 or of a fiduciary character2 to its customer or a third party (such as the beneficiary of a trust).3 If the lender is a trustee of money for a customer, or the customer is a trustee of money for another party, and the trust money is deposited with the lender, then the lender will have to keep the trust funds separate from other moneys of the customer, in a designated account, and cannot inmix the...
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