diff --git a/src/policy.c b/src/policy.c
index dbd3015..f7814bc 100644
--- a/src/policy.c
+++ b/src/policy.c
@@ -426,6 +426,8 @@
             }
         }
     }
+    // Approved
+    qd_conn->n_sessions++;
     return true;
 }
 
@@ -592,8 +594,11 @@
 //
 bool qd_policy_approve_amqp_sender_link(pn_link_t *pn_link, qd_connection_t *qd_conn)
 {
+    qd_log(qd_conn->server->qd->policy->log_source, QD_LOG_TRACE,
+        "Approve sender link by count User: '%s', Current: %d, Limit: %d",
+        qd_conn->user_id, qd_conn->n_senders, qd_conn->policy_settings->maxSenders);
     if (qd_conn->policy_settings->maxSenders) {
-        if (qd_conn->n_senders == qd_conn->policy_settings->maxSenders) {
+        if (qd_conn->n_senders >= qd_conn->policy_settings->maxSenders) {
             // Max sender limit specified and violated.
             _qd_policy_deny_amqp_sender_link(pn_link, qd_conn);
             return false;
@@ -624,20 +629,25 @@
         lookup = qd_conn->policy_settings->allowAnonymousSender;
         qd_log(qd_conn->server->qd->policy->log_source, QD_LOG_TRACE,
             "Approve anonymous sender for user '%s': %s",
-			qd_conn->user_id, (lookup ? "ALLOW" : "DENY"));
+            qd_conn->user_id, (lookup ? "ALLOW" : "DENY"));
         if (!lookup) {
             _qd_policy_deny_amqp_receiver_link(pn_link, qd_conn);
             return false;
         }
     }
+    // Approved
+    qd_conn->n_senders++;
     return true;
 }
 
 
 bool qd_policy_approve_amqp_receiver_link(pn_link_t *pn_link, qd_connection_t *qd_conn)
 {
+    qd_log(qd_conn->server->qd->policy->log_source, QD_LOG_TRACE,
+        "Approve receiver link by count User: '%s', Current: %d, Limit: %d",
+        qd_conn->user_id, qd_conn->n_receivers, qd_conn->policy_settings->maxReceivers);
     if (qd_conn->policy_settings->maxReceivers) {
-        if (qd_conn->n_receivers == qd_conn->policy_settings->maxReceivers) {
+        if (qd_conn->n_receivers >= qd_conn->policy_settings->maxReceivers) {
             // Max sender limit specified and violated.
             _qd_policy_deny_amqp_receiver_link(pn_link, qd_conn);
             return false;
@@ -647,7 +657,7 @@
     } else {
         // max receiver limit not specified
     }
-    // Deny receiver link based on source
+    // Approve receiver link based on source
     bool dynamic_src = pn_terminus_is_dynamic(pn_link_remote_source(pn_link));
     if (dynamic_src) {
         bool lookup = qd_conn->policy_settings->allowDynamicSrc;
@@ -657,6 +667,9 @@
         // Dynamic source policy rendered the decision
         if (!lookup) {
             _qd_policy_deny_amqp_receiver_link(pn_link, qd_conn);
+            return false;
+        } else {
+            qd_conn->n_receivers++;
         }
         return lookup;
     }
@@ -677,11 +690,13 @@
         // A receiver with no remote source.
         qd_log(qd_conn->server->qd->policy->log_source, QD_LOG_TRACE,
                "Approve receiver link '' for user '%s': DENY",
-			   qd_conn->user_id);
+               qd_conn->user_id);
 
         _qd_policy_deny_amqp_receiver_link(pn_link, qd_conn);
         return false;
     }
+    // Approved
+    qd_conn->n_receivers++;
     return true;
 }
 
diff --git a/tests/CMakeLists.txt b/tests/CMakeLists.txt
index 123884e..d4c55c3 100644
--- a/tests/CMakeLists.txt
+++ b/tests/CMakeLists.txt
@@ -106,6 +106,7 @@
 file(COPY ${CMAKE_CURRENT_SOURCE_DIR}/policy-1/policy-boardwalk.json   DESTINATION ${CMAKE_CURRENT_BINARY_DIR}/policy-1/)
 file(COPY ${CMAKE_CURRENT_SOURCE_DIR}/policy-1/policy-safari.json      DESTINATION ${CMAKE_CURRENT_BINARY_DIR}/policy-1/)
 file(COPY ${CMAKE_CURRENT_SOURCE_DIR}/policy-2/policy-photoserver-sasl.sasldb  DESTINATION ${CMAKE_CURRENT_BINARY_DIR}/policy-2)
+file(COPY ${CMAKE_CURRENT_SOURCE_DIR}/policy-3/test-sender-receiver-limits.json DESTINATION ${CMAKE_CURRENT_BINARY_DIR}/policy-3)
 
 # following install() functions will be called only if you do a make "install"
 install(FILES ${SYSTEM_TEST_FILES}
diff --git a/tests/policy-3/test-sender-receiver-limits.json b/tests/policy-3/test-sender-receiver-limits.json
new file mode 100644
index 0000000..2a5b367
--- /dev/null
+++ b/tests/policy-3/test-sender-receiver-limits.json
@@ -0,0 +1,26 @@
+[
+# Ruleset with differing number of senders and receivers
+# so tests can determine that correct limit is matched.
+  ["policyRuleset", {
+      "applicationName": "0.0.0.0",
+      "maxConnections": 50,
+      "maxConnPerUser": 2,
+      "maxConnPerHost": 4,
+      "connectionAllowDefault": true,
+      "settings": {
+        "default" : {
+          "maxFrameSize":     222222,
+          "maxMessageSize":   222222,
+          "maxSessionWindow": 222222,
+          "maxSessions":           2,
+          "maxSenders":            2,
+          "maxReceivers":          4,
+          "allowDynamicSrc":      true,
+          "allowAnonymousSender": true,
+          "sources": "*",
+          "targets": "*"
+        }
+      }
+    }
+  ]
+]
diff --git a/tests/system_tests_policy.py b/tests/system_tests_policy.py
index e040a61..e95a190 100644
--- a/tests/system_tests_policy.py
+++ b/tests/system_tests_policy.py
@@ -109,5 +109,95 @@
         rulesets = json.loads(self.run_qdmanage('query --type=policyRuleset'))
         self.assertEqual(len(rulesets), 3)
 
+
+class SenderReceiverLimits(TestCase):
+    """
+    Verify that specifying a policy folder from the router conf file
+    effects loading the policies in that folder.
+    This test relies on qdmanage utility.
+    """
+    @classmethod
+    def setUpClass(cls):
+        """Start the router"""
+        super(SenderReceiverLimits, cls).setUpClass()
+        policy_config_path = os.path.join(cls.top_dir, 'policy-3')
+        config = Qdrouterd.Config([
+            ('container', {'workerThreads': 4, 'containerName': 'Qpid.Dispatch.Router.Policy3'}),
+            ('router', {'mode': 'standalone', 'routerId': 'QDR.Policy'}),
+            ('listener', {'port': cls.tester.get_port()}),
+            ('policy', {'maximumConnections': 2, 'policyFolder': policy_config_path, 'enableAccessRules': 'true'})
+        ])
+
+        cls.router = cls.tester.qdrouterd('SenderReceiverLimits', config, wait=True)
+
+    def address(self):
+        return self.router.addresses[0]
+
+    def test_verify_n_receivers(self):
+        n = 4
+        addr = self.address()
+
+        # connection should be ok
+        denied = False
+        try:
+            br1 = BlockingConnection(addr)
+        except ConnectionException:
+            denied = True
+
+        self.assertFalse(denied) # assert if connections that should open did not open
+
+        # n receivers OK
+        try:
+            r1 = br1.create_receiver(address="****YES_1of4***")
+            r2 = br1.create_receiver(address="****YES_20f4****")
+            r3 = br1.create_receiver(address="****YES_3of4****")
+            r4 = br1.create_receiver(address="****YES_4of4****")
+        except Exception:
+            denied = True
+
+        self.assertFalse(denied) # n receivers should have worked
+
+        # receiver n+1 should be denied
+        try:
+            r5 = br1.create_receiver("****NO****")
+        except Exception:
+            denied = True
+
+        self.assertTrue(denied) # receiver n+1 should have failed
+
+        br1.close()
+
+    def test_verify_n_senders(self):
+        n = 2
+        addr = self.address()
+
+        # connection should be ok
+        denied = False
+        try:
+            bs1 = BlockingConnection(addr)
+        except ConnectionException:
+            denied = True
+
+        self.assertFalse(denied) # assert if connections that should open did not open
+
+        # n senders OK
+        try:
+            s1 = bs1.create_sender(address="****YES_1of2****")
+            s2 = bs1.create_sender(address="****YES_2of2****")
+        except Exception:
+            denied = True
+
+        self.assertFalse(denied) # n senders should have worked
+
+        # receiver n+1 should be denied
+        try:
+            s3 = bs1.create_sender("****NO****")
+        except Exception:
+            denied = True
+
+        self.assertTrue(denied) # sender n+1 should have failed
+
+        bs1.close()
+
 if __name__ == '__main__':
     unittest.main(main_module())