diff --git a/src/cpp/ripple/Pathfinder.cpp b/src/cpp/ripple/Pathfinder.cpp
index 674c811d00..a7f03cc1cf 100644
--- a/src/cpp/ripple/Pathfinder.cpp
+++ b/src/cpp/ripple/Pathfinder.cpp
@@ -244,8 +244,8 @@ bool Pathfinder::findPaths(const unsigned int iMaxSteps, const unsigned int iMax
 				}
 				else
 				{
-
 					// Remove implied first and last nodes.
+
 					spPath.mPath.erase(spPath.mPath.begin());
 					spPath.mPath.erase(spPath.mPath.begin() + spPath.mPath.size()-1);
 
@@ -301,7 +301,9 @@ bool Pathfinder::findPaths(const unsigned int iMaxSteps, const unsigned int iMax
 				// Last element is for non-XRP, continue by adding ripple lines and order books.
 
 				// Create new paths for each outbound account not already in the path.
-				AccountItems rippleLines(speEnd.mAccountID, mLedger, AccountItem::pointer(new RippleState()));
+				AccountItems	rippleLines(speEnd.mAccountID, mLedger, AccountItem::pointer(new RippleState()));
+				SLE::pointer	sleSrc			= lesActive.entryCache(ltACCOUNT_ROOT, Ledger::getAccountRootIndex(speEnd.mAccountID));
+				bool			bRequireAuth	= isSetBit(sleSrc->getFieldU32(sfFlags), lsfRequireAuth);
 
 				BOOST_FOREACH(AccountItem::ref item, rippleLines.getItems())
 				{
@@ -317,9 +319,10 @@ bool Pathfinder::findPaths(const unsigned int iMaxSteps, const unsigned int iMax
 								% RippleAddress::createHumanAccountID(rspEntry->getAccountIDPeer().getAccountID())
 								% STAmount::createHumanCurrency(speEnd.mCurrencyID));
 					}
-					else if (!rspEntry->getBalance().isPositive()	// No IOUs to send.
-						&& (!rspEntry->getLimitPeer()				// Peer does not extend credit.
-							|| *rspEntry->getBalance().negate() >= rspEntry->getLimitPeer()))	// No credit left.
+					else if (!rspEntry->getBalance().isPositive()							// No IOUs to send.
+						&& (!rspEntry->getLimitPeer()										// Peer does not extend credit.
+							|| *rspEntry->getBalance().negate() >= rspEntry->getLimitPeer()	// No credit left.
+							|| (bRequireAuth && !rspEntry->getAuth())))						// Not authorized to hold credit.
 					{
 						// Path has no credit left. Ignore it.
 						cLog(lsDEBUG) <<
diff --git a/src/cpp/ripple/RippleState.cpp b/src/cpp/ripple/RippleState.cpp
index 72b20b6c62..1ec6ebdaf8 100644
--- a/src/cpp/ripple/RippleState.cpp
+++ b/src/cpp/ripple/RippleState.cpp
@@ -14,6 +14,8 @@ RippleState::RippleState(SerializedLedgerEntry::ref ledgerEntry) : AccountItem(l
 	mValid(false),
 	mViewLowest(true)
 {
+	mFlags			= mLedgerEntry->getFieldU32(sfFlags);
+
 	mLowLimit		= mLedgerEntry->getFieldAmount(sfLowLimit);
 	mHighLimit		= mLedgerEntry->getFieldAmount(sfHighLimit);
 
diff --git a/src/cpp/ripple/RippleState.h b/src/cpp/ripple/RippleState.h
index a89c554761..ac79673368 100644
--- a/src/cpp/ripple/RippleState.h
+++ b/src/cpp/ripple/RippleState.h
@@ -17,6 +17,8 @@ public:
 	typedef boost::shared_ptr<RippleState> pointer;
 
 private:
+	uint32							mFlags;
+
 	RippleAddress					mLowID;
 	RippleAddress					mHighID;
 
@@ -42,16 +44,19 @@ public:
 
 	void					setViewAccount(const uint160& accountID);
 
-	const RippleAddress	getAccountID() const		{ return mViewLowest ? mLowID : mHighID; }
-	const RippleAddress	getAccountIDPeer() const	{ return mViewLowest ? mHighID : mLowID; }
+	const RippleAddress	getAccountID() const		{ return  mViewLowest ? mLowID : mHighID; }
+	const RippleAddress	getAccountIDPeer() const	{ return !mViewLowest ? mLowID : mHighID; }
 
-	STAmount				getBalance() const			{ return mBalance; }
+	bool				getAuth() const				{ return isSetBit(mFlags,  mViewLowest ? lsfLowAuth : lsfHighAuth); }
+	bool				getAuthPeer() const			{ return isSetBit(mFlags, !mViewLowest ? lsfLowAuth : lsfHighAuth); }
 
-	STAmount				getLimit() const			{ return mViewLowest ? mLowLimit : mHighLimit; }
-	STAmount				getLimitPeer() const		{ return mViewLowest ? mHighLimit : mLowLimit; }
+	STAmount			getBalance() const			{ return mBalance; }
 
-	uint32					getQualityIn() const		{ return((uint32) (mViewLowest ? mLowQualityIn : mHighQualityIn)); }
-	uint32					getQualityOut() const		{ return((uint32) (mViewLowest ? mLowQualityOut : mHighQualityOut)); }
+	STAmount			getLimit() const			{ return  mViewLowest ? mLowLimit : mHighLimit; }
+	STAmount			getLimitPeer() const		{ return !mViewLowest ? mLowLimit : mHighLimit; }
+
+	uint32				getQualityIn() const		{ return((uint32) (mViewLowest ? mLowQualityIn : mHighQualityIn)); }
+	uint32				getQualityOut() const		{ return((uint32) (mViewLowest ? mLowQualityOut : mHighQualityOut)); }
 
 	SerializedLedgerEntry::pointer getSLE() { return mLedgerEntry; }
 	const SerializedLedgerEntry& peekSLE() const { return *mLedgerEntry; }