Specific-purpose deposits lose trust status once the purpose is completed before liquidation, defeating preferential creditor claims.

Money deposited for a specific and limited purpose, such as earnest money for a tender, does not remain trust money once that purpose has been fully achieved before the bank enters voluntary liquidation. After the object of the deposit is completed, no subsisting trust continues at the time of liquidation, so the depositors cannot claim preferential status as preferential creditors on that basis. The claim to priority therefore failed, and the rejection of preferential status was affirmed.

---

---

Issues: Whether the deposited amounts remained trust money giving the appellants priority as preferential creditors when the bank went into voluntary liquidation after the purpose of the deposit had been fulfilled.

Analysis: The deposits were made for a specific and limited purpose, namely earnest money for a tender. That purpose was completed before liquidation, and once the object of the deposit had been achieved there was no subsisting trust at the time the bank went into liquidation. In that situation, the appellants could not claim preferential status in respect of the sums deposited.

Conclusion: The claim to priority failed and the appellants were not preferential creditors.

Final Conclusion: The appeal was dismissed and the order rejecting preferential status was affirmed.

Ratio Decidendi: Where money is deposited for a specific purpose and that purpose is fully accomplished before liquidation, the trust stands extinguished and no preferential claim can be maintained on that basis.

---