Rangers used Ticketus cash to fund a player transfer then hid it from the club's annual accounts, a court has heard.

Jurors were told on Wednesday that Rangers used the lending firm to help them buy striker Nikica Jelavic in 2010.

This is the same company Craig Whyte allegedly used to assist in the funding of his takeover.

Whyte, 46, is on trial on a charge of fraud and a second allegation under the Companies Act in connection with his 2011 purchase of the Ibrox club. He denies both charges.

During evidence, the court also heard then-Rangers chairman Alastair Johnston wrote to the club's bankers Lloyds Banking Group, accusing it of intending to "drain every single penny out of the club" leaving "carnage" as a result of its so-called "polices".

Banker Ian Shanks was back in the witness box at the High Court in Glasgow for a second day.

The 50 year-old was a senior official at Lloyds and was involved in Whyte's purchase of Sir David Murray's majority stake at Rangers.

The court was told of contact between Mr Shanks and then-Rangers chief executive Martin Bain in 2010.

There was mention of the transfer of striker Nikica Jelavic to Rangers from Rapid Vienna.

It was said the Austrian club "required the balance of transfer funds" to be "cash-backed".

Rangers wanted to facilitate this by "seeking to increase the funding from Ticketus" but there was to be no mention of the firm on the year-end accounts.

Defence QC Donald Findlay asked: "They hid the use of Ticketus?"

Mr Shanks responded: "Yes."

Prosecutors claim Whyte helped fund his 2011 takeover by getting a loan from Ticketus against three years of future season ticket sales.

Earlier, the court heard of Mr Johnston's remarks in a letter to Lloyds months before Whyte's takeover.

In the letter, Johnston claimed the Rangers board were "masquerading as directors" effectively "stooges" for the "objective" of the bank.

He then insisted Lloyds wanted to "drain every single penny out of the club... to the extent Rangers as a thriving concern would be throttled into submission".

The chairman wrote of "carnage" and referred to the "impoverished remains" of the club.