A lender who attaches a purpose to an advance may end up with something far stronger than a contractual debt. This chapter begins with the nature of the Quistclose trust: what it is, the requirements that must be satisfied before one arises, and where the beneficial interest sits while the arrangement subsists. It then moves to the trust's operation in practice — why it matters so much on the recipient's insolvency, how the trust comes to an end once the money is properly applied, and what counts as a failure of the specified purpose. Finally, it traces what happens to the funds when that purpose fails and the money results back to the lender.
