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The People of God » Institutes of Consecrated Life and Societies of Apostolic Life » Institutes of Consecrated Life » Religious Institutes » The governance of institutes » Temporal goods and their administration
Canon 639. §1 If a juridical person has contracted debts and obligations, even with the permission of the Superior, it is responsible for them.

§2 If individual members have, with the permission of the Superior, entered into contracts concerning their own property, they are responsible. If, however, they have conducted business for the institute on the mandate of a Superior, the institute is responsible.

§3 If a religious has entered into a contract without any permission of Superiors, the religious is responsible, not the juridical person.

§4 However, an action can always be brought against a person who has gained from a contract entered into.

§5 Superiors are to be careful not to allow debts to be contracted unless they are certain that normal income can service the interest on the debt, and by lawful amortization repay the capital over a period which is not unduly extended.
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