47. Pledging partnership credit or assets for private debt.

Where one partner pledges the firm's credit for a purpose apparently not connected with its ordinary course of business1, the firm is not bound unless he is in fact specially authorised by the other partners2. Therefore, a partner who holds shares as trustee for his firm cannot give a valid charge upon them for his private debt to a lender who knows that they belong to the firm3; but, if he has power to borrow money, he can give a charge on partnership property for his own debt to a person who has no notice that the property is