New York Statutes

§ 72 — Diversion of trust funds

New York § 72
JurisdictionNew York
Law LIELien
Art. 3-ADefinition and Enforcement of Trusts

This text of New York § 72 (Diversion of trust funds) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
N.Y. Lien § 72 (2026).

Text

§ 72. Diversion of trust funds.

1.Any transaction by which any trust\nasset is paid, transferred or applied for any purpose other than a\npurpose of the trust as stated in subdivision one or subdivision two of\nsection seventy-one, before payment or discharge of all trust claims\nwith respect to the trust, is a diversion of trust assets, whether or\nnot there are trust claims in existence at the time of the transaction,\nand if the diversion occurs by the voluntary act of the trustee or by\nhis consent such act or consent is a breach of trust.\n Nothing in this article affects the rights of a holder in due course\nof a negotiable instrument or of a purchaser in good faith for value and\nwithout notice that a transfer to him is a diversion of trust assets.\n 2. Trust assets shall not b

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New York § 72, Counsel Stack Legal Research, https://law.counselstack.com/statute/ny/LIE/72.