A prescribed power of attorney under the Powers of Attorney Act 2003 (NSW) does not authorise the attorney to direct loan funds for the attorney's own benefit unless the instrument expressly authorises the conferral of such benefit. A lender who knows that a payment direction is for the attorney's benefit cannot rely on ostensible authority arising from the power of attorney. A solicitor acting on instructions from the attorney has no greater authority than the attorney himself, and the principal's execution of the power of attorney does not constitute a holding out of the solicitor as authorised.
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