This section of the book is from the "Canadian Banking Practice" book, by John T. P. Knight.
Question 597.— Can a company having a Dominion charter borrow on the security of goods under section 74 of the Bank Act without limitation as to the amount?
Answer.—If the company is incorporated under the Companies' Act, and gives its own promissory notes with security under section 74, there would seem to be no limit to the amount which it may borrow. See Amendment to the Companies' Act, cap. 27, 1897. If it should borrow in any other way, as for instance by overdraft, the limitation in the Act would apply.
If the company has a special charter, its power to borrow would depend on its own charter, or the general law if no special provisions as to borrowing were contained in the charter.