Borrowing powers. Most public bodies are possessed of borrowing powers, but the terms of the Act conferring the power to borrow must be strictly pursued, see Att.-Gen. V. De Winton, (1906) 2 Ch 106; Rex v. Locke, (1910) 2 KB 201.
A company under the (English) Companies Act, 1929, has no power to borrow money unless the provision is contained in the Memorandum of Association, but it has an implied power to borrow money and give security therefor for the purposes of its business, General Auction Estate Co. v. Smith, (1891) 3 Ch 432. If the money borrowed is beyond the company's powers the excess is void, Wenlock v. River Dee Co., (1885) 10 AC 354. And see Re Harris Calculating Machine Co., (1914) 1 Ch 920, as to the lender's right of subrogation to creditors who have been paid with the proceeds of the void loan. See also (English) Companies Clauses Consolidation Act, 1845 (8 & 9 Vict. c. 16), ss. 38 et. Seq.; ASSOCIATION, MEMORANDUM OF.