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Loan Board of the Eastern Pennsylvania Conference decides to accept investments
The Loan Board of the Eastern Pennsylvania Conference decided to accept investments at this time. - 8/27/2007
Applications for loans to churches are still being accepted. Loans are for acquisition, repair and construction of real property; loans are not for program. If you have any questions, please contact Moses Kumar at the Conference Office, 1-800-828-9093, Ext. 209.
Click here for investment form.
Investor Information
Each investor receives a Certificate of Participation from the Loan Fund certifying that the named investor has made an investment of a specific amount in the Loan Fund. The minimum investment is $100.00. The Certificates of Participation are offered for cash, and there are no financing terms available. A certificate of Participation is transferable only with the consent of the Loan Fund when properly endorsed and surrendered to the Loan Fund for cancellation.
Interest rates are set by the vote of the members of the Annual Conference as recommended by the Loan Fund Board. The members of the Loan Fund have authorized the Loan Fund Board to raise or lower the interest rate without approval of the members at its regular meeting not to exceed two percentage points in one calendar year. Any other change would require approval of the members. Investors will be given sixty (60) days’ written notice of interest rate change. The currently effective interest rate is five (5%) percent per annum. The interest earned on each certificate of Participation is paid semi-annually as of May 31 and November 30. The Certificates bear no maturity date. The Certificates may be redeemed in whole or in part upon return of the Certificate and sixty (60) days’ notice from the investor. Interest is paid to the date of redemption.
Borrower Information
All applications shall be made on Loan Fund forms and filed with the Loan Fund Treasurer. The Pastor, District Superintendent and Trustee Chair must sign the application. Applications must be submitted at least one week prior to the date of a Board meeting. All applications will be considered in the order received and to the extent funds are available. The District Board of Church Location and Building must review the construction project if its cost will exceed 10% of the building’s value.
Once a Loan is approved by the Board, the Borrower will receive a written Loan commitment letter which when accepted by the Borrower holds the Loan open for six months. The Borrower must submit proof of recorded mortgage, properly signed note and resolution authorizing execution of Note and mortgage (details below). Thirty days’ written notice may be required to receive the Loan proceeds. If the funds are not withdrawn within five months, a second letter will be mailed to the Borrower indicating that a further six month extension will be permitted only upon written request of the Borrower.
The minimum Loan is $10,000.00 and the maximum amount which can be borrowed is $1,000,000.
Loans are for acquisition, repair and construction of real property and not for program. -Loans are amortized as follows:
1. Under $50,000 up to 5 years; and
2. $50,000 to $499,999 up to 10 years; and
3. $500,000 and over up to 15 years.
All Loans must be secured by a mortgage. The Pastor and District Superintendent must consent to the mortgage. Notes have a demand feature and the current interest rate is 6.50%. Interest rates charged to Borrowers may be adjusted up or down 2% by the Loan Fund Board after sixty (60) days’ written notice to the Borrower. All payments received are credited first to interest and then to principal. The Loan Fund has no fees or charges except that the Borrower must pay to record the mortgage.
For a loan application, click here
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