- 47 -                                                 
            successor.  Under the escrow arrangement there was accordingly a                          
            separation of legal and beneficial ownership with respect to                              
            specific property that was inconsistent with a mere bailment.                             
            See Bogert, supra sec. 11, at 122-123.  The Escrow Trustees                               
            exercised some discretion over the investment of the reserves and                         
            the release of unconsumed reserves; through their audit                                   
            authority, they also supervised the Dealerships' compliance with                          
            the terms of the VSC program.  Neither the Dealerships nor the                            
            contract holders had access to the reserves or the right to                               
            control the actions of the Escrow Trustees.  The escrow                                   
            arrangement was therefore not an agency relationship.  See                                
            generally 1 Restatement, supra sec. 8; Bogert, supra sec. 15, at                          
            163, 168-169, 172-176.  Cf. McCrory v. Commissioner, 69 F.2d 688,                         
            689 (5th Cir. 1934), affg. 25 B.T.A. 994 (1932).  We are                                  
            satisfied that the PLRF accounts would qualify as trusts under                            
            general principles of law as well as the law of the particular                            
            States governing the operative agreements.  Cf. Merchants Natl.                           
            Bank v. Frazier, 67 N.E.2d 611 (Ill. App. Ct. 1946) (escrow                               
            treated as express trust); Newton v. Wimsatt, supra; Southern                             
            Cross Lumber & Millwork Co. v. Becker, 761 S.W.2d 269 (Mo. App.                           
            Ct. 1988) (same).  The PLRF accounts are also properly regarded                           
            as trusts for Federal income tax purposes.                                                
                  It does not follow that funds deposited into the PLRF                               
            accounts by the Dealerships were collected from the individual                            
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