Simple Quistclose Trust

Published by a UUÂãÁÄÖ±²¥ Private Client expert
Precedents

Simple Quistclose Trust

Published by a UUÂãÁÄÖ±²¥ Private Client expert

Precedents
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This [Deed OR Agreement] dated [•] 20[•] is made

Parties

  1. 1

    [insert name], a company incorporated in England and Wales with registered number [insert company number] whose registered office is at [insert address] (the [settlor OR Lender]); and

  1. 2

    [insert name] of [insert address] (the [Trustee OR Borrower]).

Background

    1. 1

      Definitions and interpretation

      1. 1.1

        Definitions

        In this [Deed OR Agreement], unless otherwise provided:

        1. 1.1.1

          The Trust Fund means the sum of [•] paid by the Settlor to the Trustee by [cheque OR bankers draft OR transfer etc] and held by the Trustee at [•] Bank plc in account number [•]

        1. 1.1.2

          The Specified Purpose means [•]

      1. 1.2

        Interpretation

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Jurisdiction(s):
United Kingdom
Key definition:
Quistclose trust definition
What does Quistclose trust mean?

A loan arrangement giving rise to a trust of the money loaned to enable the borrower to carry out a specified purpose, resulting, if the purpose is performed, in a pure debtor-creditor relationship excluding any trust but in the event of non-performance by the borrower enabling the lender to rely on the loaned money as held on trust for the lender.

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