Mercantile Bank of India Ltd v Chartered Bank of India, Australia and China, and Strauss & Co Ltd The defendant bank advanced money to the defendant company, sometimes by way of overdraft and at other times by way of advance on loan account. These advances were secured by trust receipts, by which the company agreed that goods purchased with such advances should be held by them as agents for and in trust for the bank, the intention being that the bank should be entitled to such goods as security for the advance.