I would love advice regarding the following situation: a kindergarten was asked to relinquish its incorporated status some years ago to join a cluster management group (who are also unincorporated and overseen by a Board on behalf of incorporated associations). Four years ago the cluster managers were approached by the former director of the kindergarten - their own employee - who requested a loan to cover improvements to the kindergarten. The loan was approved and committee members requested to sign a loan agreement contract stating that half the repayment would come from fundraising money and half from grants (which was never an option as grants are not awarded retrospectively). The cluster management group and kinder will be parting ways from next year and there is still about half the loan needing to be repaid. If it's noteworthy, the kinder has recently successfully applied to become incorporated. My question is, from a legal standpoint, can an organisation loan money to another part of its own organisation and expect repayment? I would really appreciate any advice you can offer.