I find that the officers had actual authority to proceed with the acquisition of land provided the property of the church was not put at risk. I believe Zaychuk's assurance to the congregation in this regard arose out of his erroneous understanding of mortgage law. This internal restriction was never communicated to the plaintiff's bank and so was not binding upon them: Royal British Bank v. Turquand (1856), 6 E. & B. 327, 119 E.R. 886. When signing the promissory note they were acting in their capacity as officers of the corporate entity representing the congregation and pursuant to para. 6(b) of the declaration of incorporation.
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