Index: subversion/libsvn_ra_svn/sasl_auth.c
===================================================================
--- subversion/libsvn_ra_svn/sasl_auth.c	(revision 21330)
+++ subversion/libsvn_ra_svn/sasl_auth.c	(working copy)
@@ -246,10 +246,6 @@
 {
   sasl_interact_t *prompt;
 
-  if (!creds)
-    return svn_error_createf(SVN_ERR_RA_NOT_AUTHORIZED, NULL,
-                             _("Authentication error from server: %s"),
-                             last_err);
   for (prompt = client_interact; prompt->id != SASL_CB_LIST_END; prompt++)
     {
       switch (prompt->id)
@@ -521,6 +517,12 @@
 
       if (!success && need_creds)
         SVN_ERR(svn_auth_next_credentials(&creds, iterstate, pool));
+      /* If we ran out of authentication providers, return the last 
+         error sent by the server. */
+      if (!creds)
+        return svn_error_createf(SVN_ERR_RA_NOT_AUTHORIZED, NULL,
+                                _("Authentication error from server: %s"),
+                                last_err);
     }
   while (!success);
   svn_pool_destroy(subpool);