THE REVEALING CONVERSATION RESUMES......

A day later as Bigot was making his way to the County Court, he bumps into the very same highly inquisitive student member.

M : Hello there........but please tell me if I'm wrong.....the SHBC is an unincorporated association, yes ?
B-J : Correct....but so what
M : And didn't you tell me that the club borrows money from its members to set up an ongoing legal expenses fighting fund ?
B-J : Yes I did.....but what of it
M : And this borrowing is carried out by means of numerous loan contracts ?
B-J : Yes....so what are you trying to say ? 
M : Well....if the club is an unincorporated association then it has no separate legal identity or personality......which means in effect that members can only loan money to other club members. The reality is that " the club " as non-legal entity has no capacity to contract with its members.
B-J : If you say so....but what's the big deal ?
M : Well....it seems to me that the club officers.....or its trustees......are best placed to act as parties to a series of loan contracts.....and this in turn means they must be the ones who are personally liable for the repayment of the loan debt. Otherwise the liability of this loan debt would fall upon all the club members........ including those who loaned the money
B-J : That hopefully will be the case......repayment will simply come from the future income generated by the table money and members' subscriptions 
M : But what if the only members left in the club are the very same members who are owed money by the club ? This would mean they would be liable to themselves......or to put it another way they would be repaying themselves from their own table money and subscriptions. Moreover, if problems arose over repayments, then they would end up having to sue themselves !
B-J : Sounds very logical to me......
M : I'm shocked.....
B-J : And I'm in a hurry.....so bugger off.....and let me get on with my business