An express trust exists where one party holds, in trust, money
or property for another party with the intention of creating a
trust relationship. If an unpaid supplier can demonstrate that it
and the bankrupt purchaser intended to create a trust, and the
funds and property remain specifically identifiable, it may be
entitled to recover the funds or property that is the subject of
the trust.
An unpaid supplier may establish the intention of a valid trust
by ensuring that the "three certainties" of intention,
subject matter, and objects, are met.
In order to meet the certainty of intention, the trustee must
administratively hold property for the beneficiary. A trust exists
if the trustee is obligated to deal with the property on behalf of
the beneficiary. This obligation may be express or implied, but the
intention must be clear. Certainty of subject matter requires that
the property or funds held in trust be clearly identifiable, while
certainty of objects refers to
