Section 72. Diversion of trust funds

1. Any transaction by which any trust
  asset is paid, transferred or applied  for  any  purpose  other  than  a
  purpose  of the trust as stated in subdivision one or subdivision two of
  section seventy-one, before payment or discharge  of  all  trust  claims
  with  respect  to  the trust, is a diversion of trust assets, whether or
  not there are trust claims in existence at the time of the  transaction,
  and  if  the  diversion occurs by the voluntary act of the trustee or by
  his consent such act or consent is a breach of trust.
    Nothing in this article affects the rights of a holder in  due  course
  of a negotiable instrument or of a purchaser in good faith for value and
  without notice that a transfer to him is a diversion of trust assets.
    2.  Trust  assets shall not be levied upon or subject to a restraining
  notice issued pursuant to section fifty-two hundred  twenty-two  of  the
  civil practice law and rules as the individual property of the trustee.
    3.  In  any  action or proceeding in which it is sought to apply trust
  assets for a purpose other than a purpose of  the  trust  as  stated  in
  subdivision one or subdivision two of section seventy-one
    (a)  it  shall be the duty of the trustee, if he is a party, to defend
  the trust against such application, and if he knows  of  the  action  or
  proceeding  but  is  not  a  party, to make application for intervention
  therein for the purpose of defending the trust;
    (b) any beneficiary of the trust having a trust claim may intervene in
  the action or proceeding to defend the trust against such application.