Section 86, Cap. 287

The Directors may exercise all the powers of the Company to borrowmoney, and to mortgage or charge its undertaking, property and uncalled capital, or any part thereof, and to issue debentures, debenture stock and other securities (whether at par or at a discount or premium) as security for any debt, liability or obligation of the Company or of any third party: Provided that the amount for the time being remaining undischarged of moneys borrowed or secured by the Directors as aforesaid (apart from temporary loans obtained from the Company's bankers in the ordinary course of business) shall not at any time, without the previous sanction of the Company in General Meeting exceed £250,000, but nevertheless no lender or other person dealing with the Company shall be concerned to see or enquire whether the limit is observed. No debt incurred or security given in excess of such limit shall be invalid or ineffectual except in the case of express notice to the lender or the recipient of the security at the time when the debt was incurred or security given that the limit hereby imposed had been or was thereby exceeded.