Loans - Rates and Terms
Collateral Requirements
Loan Interest Rates & Maturity Limits
Loans with an amortization of more than five years are to be secured by approved collateral at least equal to the loan amount, except as noted. The borrower may provide collateral in any of the following ways:
- First mortgage liens on property titled in the name of the borrower.
- Church Extension investment notes equal to the loan amount.
- Certificates of Deposit of federally insured financial institutions.
- Marketable securities with current value equal to 125% of the loan amount.
- Second lien on property titled in the name of the borrower equal to at least 125% of the aggregate loan amount, where Church Extension holds a first lien on the subject property.
- Uniform Commercial Code liens on equipment.
- Title liens on vehicles.
- Title liens on vehicles.
Loans with an amortization of five years or less may be made without collateral, provided the loan amount is less than $60,000.
Loans to congregations with an amortization of two years or less and lines of credit to congregations with an average worship attendance of at least 175 persons may be made without collateral, provided:
- The loan amount is $100,000 or less.
- Repayment either
- Is or is to be covered by specific pledges;
- Is to be paid by the initial funding of a secured Church Extension loan; or,
- Is included in the subscribed operational budget of the borrower and the loan does not exceed 10% of the congregation's annual cash flow.
Under certain limited circumstances and with Church Extension Board of Directors approval, loans may be made directly to or guaranteed by General Units of the Church or Regional Units, without further collateral requirement.