Procedures for Processing a Loan Request
Before applying to the 412 Sycamore, Inc. Trustees for a mortgage, the congregation must have the approval of the Diocesan Standing Committee for an encumbrance on their church property.
- Once the Church has received the Standing Committee’s approval for an encumbrance, the application is submitted to the Diocesan Financial Officer. The Diocesan Financial Officer is also Corporate Secretary for 412 Sycamore, Inc. The Financial Officer, usually, automatically submits the request to the Trustees of 412 Sycamore, Inc. once the Standing Committee has approved. Most of the documents required have already been given to the Financial Officer, when the congregation requested the encumbrance from the Standing Committee. Some paperwork might need to be updated or more recent financial statements might be required.
- The approval or disapproval of the mortgage by the Trustees of 412 Sycamore, Inc. will be communicated to the congregation by the Financial Officer.
- The law firm of Porter, Wright, Morris & Arthur in Columbus will prepare the necessary legal documents including the title opinion, Promissory Note and Mortgage Deed. The Note and Mortgage will then be sent to the congregation for execution and return. The Senior Warden and Junior Warden are responsible for signing the note and loan documents. The congregation should also furnish a copy of its fire and extended coverage insurance policy with “loss payable” endorsement naming 412 Sycamore, Inc. as mortgagee to the Financial Officer. The amount of the insurance coverage should not be less than the amount of the loan.
- Upon receipt of the executed documents, the Financial Officer is authorized to release the loan proceeds to the congregation. All legal fees are the responsibility of the church.
- The Finance Department at the Diocese will set up the monthly invoicing of the loan. Mortgage payments are due monthly, normally the first of the month.
- In the event of a parochial housing loan, the 412 Sycamore, Inc. loan is to the church, with the mortgage recorded on the church property.
The church is responsible and required to lend the proceeds to the minister, and duly secure and record a mortgage on the priest’s house. Proof of the legal documents securing the church’s loan is required before release of diocesan money.