Execution of document by Clubs/Institutions/Schools :

Such bodies, if not incorporated, have not contracting powers as they have no legal entity. They can neither be used nor are the individual members of such institutions liable for any credit facilities, as long as the members signing the cheques do so in their representative capacity and not in their personal capacity. No limit should be sanctioned without prior approval of the controlling authorities. In such a situation, the bye-laws of the above institutions should be studies with a view to ascertaining their borrowing powers, the purpose for which a loan can be raised by it, the powers of the managing committee to charge the assets of institutions etc. A suitable resolution should be passed in this regard.