diff --git a/src/test/app/MPToken_test.cpp b/src/test/app/MPToken_test.cpp
index 163ce83f897..f46b5053c6f 100644
--- a/src/test/app/MPToken_test.cpp
+++ b/src/test/app/MPToken_test.cpp
@@ -640,6 +640,25 @@ class MPToken_test : public beast::unit_test::suite
             mptAlice.pay(bob, carol, 50);
         }
 
+        // Holder is not authorized
+        {
+            Env env{*this, features};
+
+            MPTTester mptAlice(env, alice, {.holders = {&bob, &carol}});
+
+            mptAlice.create(
+                    {.ownerCount = 1, .holderCount = 0, .flags = tfMPTCanTransfer});
+
+            // issuer to holder
+            mptAlice.pay(alice, bob, 100, tecNO_AUTH);
+
+            // holder to issuer
+            mptAlice.pay(bob, alice, 100, tecNO_AUTH);
+
+            // holder to holder
+            mptAlice.pay(bob, carol, 50, tecNO_AUTH);
+        }
+
         // If allowlisting is enabled, Payment fails if the receiver is not
         // authorized
         {
diff --git a/src/xrpld/ledger/detail/View.cpp b/src/xrpld/ledger/detail/View.cpp
index 6021ca75688..98d8d5b59ee 100644
--- a/src/xrpld/ledger/detail/View.cpp
+++ b/src/xrpld/ledger/detail/View.cpp
@@ -1893,6 +1893,8 @@ rippleCredit(
             else
                 return tecINSUFFICIENT_FUNDS;
         }
+        else
+            return tecNO_AUTH;
     }
 
     if (uReceiverID == issuer)
@@ -1921,6 +1923,8 @@ rippleCredit(
                 sfMPTAmount, sle->getFieldU64(sfMPTAmount) + saAmount.value());
             view.update(sle);
         }
+        else
+            return tecNO_AUTH;
     }
     return tesSUCCESS;
 }