§ 73. Affirmative defense in action against transferee of trust assets\nor to charge trustee in certain cases; "Notice of Lending." 1. In any\naction against a person to whom trust assets have been transferred, to\nrecover assets diverted from the trust or to recover damages for the\ndiversion, a transferee named in a "Notice of Lending" filed as provided\nin subdivision three of this section shall be entitled to show by way of\ndefense that the transfer was made as security for or in consideration\nof or in repayment of advances made to or on behalf of the trustee in\naccordance with such notice of lending and that prior to the making of\nsuch advances the transferee procured from the trustee the written\nagreement of the trustee that he will receive the advances and will hold\nthe right to receive such advances as trust funds to be first applied to\nthe payment of trust claims as defined in section seventy-one of this\nchapter, and that he will apply the same to such payments only, before\nusing any part of such advances for any other purpose. Subject to\nsubdivision four of this section, if such defense is established, the\ntransferee shall be entitled to a credit for the amount of the advances\nwith respect to which it is so established, to the extent that such\namount does not exceed the maximum amount specified in the notice of\nlending filed as provided in subdivision three.\n 2. In any action in which it is sought to charge a trustee personally\nwith liability by reason of a diversion of trust assets, the trustee\nshall be entitled to show by way of defense that the transfer\nconstituting the diversion was made to a transferee named in a "Notice\nof Lending" filed as provided in subdivision three and that the transfer\nwas made as security for or in consideration of or in repayment of\nadvances made to him as trustee or on his behalf as trustee in\naccordance with such notice of lending, and that such advances were\nactually applied for a purpose of the trust as stated in subdivision one\nor subdivision two of section seventy-one of this chapter. Subject to\nsubdivision four of this section, if such defense is established, the\ntrustee shall be entitled to a credit against any personal liability by\nreason of such transfer, for the amount of the advances with respect to\nwhich it is established, to the extent that such amount does not exceed\nthe maximum amount specified in the notice filed as provided in\nsubdivision three.\n 3. (a) If funds are advanced to or on behalf of a trustee, for the\npurposes of the trust, either the trustee or the person advancing the\nfunds may file a "Notice of Lending" as provided in this subdivision. In\nthe case of advances to an owner or to a contractor or subcontractor for\none or more projects for the improvement of real property including a\nhome improvement, the notice shall be filed in the office of the county\nclerk of each county where the real property improved or to be improved\nto which the notice relates is situated. Such clerk shall enter the\nfacts relating to the notice in the "lien docket" or in another book\nprovided by him for such purpose. Each such notice shall be indexed by\nthe name of the trustee to whom or on whose behalf the advances are\nmade. In the case of advances to a contractor or subcontractor for one\nor more projects involving a public improvement, the notice shall be\nfiled with the head of each department or bureau having charge of\nconstruction of an improvement to which the notice relates and with the\nfinancial officer of each public corporation or other officer or person\ncharged with the custody and disbursement of the corporate funds\napplicable to the contract for each such public improvement.\n (b) A notice filed pursuant to this section is effective for the\npurposes of this section with respect to advances made on the day of\nfiling or subsequently, or made not more than five days before the date\nof filing. The notice must contain: (1) a
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