Friday, December 11, 2015

Australian Court Finds Anglican Diocese Liable For $40M Bank Loan

In Anglican Development Fund Diocese of Bathurst v. Palmer, (NSW Sup. Ct., Dec. 10, 2015), a trial court in the Australian state of New South Wales held (in a 615 paragraph opinion) that the Anglican Diocese of Bathurst is liable for a $40 million (Aus.) loan (equivalent to $29M US) from the Commonwealth Bank of Australia which the bank extended, under a special policy for loans to certain religious organizations, solely on the basis of "a letter of acknowledgment" from the Bishop of Bathurst. The Diocese's Anglican Development Fund had reloaned $28 million (Aus.) of the funds to two start-up schools that failed.  The Sydney Morning Herald reports on the decision.