Wherever property, or money, has come into the hands of an agent charged with the accomplishment of a certain object, or is given the agent for the performance of a particular act, the law imposes a trust on the particular fund for the performance of the very thing as designed by the principal, and as long as the agent has the fund in his hands he cannot avoid the trust, no matter how he may change the money itself, for as has been said, as long as the fund can be identified, equity will follow it through any number of transmutations and preserve it for the owner. The trust will also follow the fund into the hands of any third party, until it comes into the hands of one who is in fact a bona fide holder for value, with any notice, either actual or constructive, of the trust.10

The principal may recover, even though the third person, to whom the fund in its changed state has come, has not himself aided in the attempt to defeat the trust if the third person is not in fact a bona fide holder.11

The property or the fund sought to be charged with a trust, must be in the principal, before the division takes place; for if an agent should fraudulently collect commissions from a third party, and invest them in other property, the principal cannot pursue the fund into the investments, since such fund was not the property of the principal's, but only represented a debt due him from the agent for which an action for money had and received would lie.

9 Farmer's & Merchants' Bank vs.

King, 57 Penn. St., 202. 10 Fifth Nat'l Bank vs. Village of Hyde Park, 101 ID., 595. 11 Lane vs. Dighton, Ambler, 409; Story on Agency, Sec. 230.

The same doctrine of trust funds is given even more importance in a chancery court, and if it can be shown that a trustee has wrongfully invested money or trust property, of his principal, or cestui que trust, in land, and it can be distinctly traced, equity will follow it into the land, and hold the legal owner to be a trustee thereof, for the benefit of the party whose money or property has been so invested.12