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THE PROPERTY HANDBOOK
SECTION 02
Borrowing by parishes
Trustees’ discretion
All borrowing is at the absolute discretion of the Church Property Trustees. This includes
a capacity to vary the routine conditions in exceptional circumstances, including the
refusal of authorisation of applications.
Limits on borrowing
• Maximum of 50% of the cost of a project may generally be borrowed.
• Loans on low or nil interest are included in this condition.
• The borrowing term is limited to a maximum of 15 years.
Why there are limits
• To ensure wide parish buy-in to proposals.
• To ensure current parish members do not overburden future members.
• To prevent over-commitment.
Required approvals
• Whole-hearted congregational support of the proposed borrowing, including formal
voting of 80% support at the relevant congregational meeting.
• Formal presbytery/UDC endorsement of the proposal to borrow.
• Presbytery/UDC assessment of the viability of the proposal, including capacity to
service the borrowing.
Urgent proposals
In exceptional circumstances, the Trustees will consider urgent proposals, under
stringent conditions. Contact the Secretary to the Trustees for details.
Legal issues
Your solicitor will prepare a Memorandum of Mortgage. It will include a clause limiting
liability to the property over which the loan is secured. It should read something like this:
“The liability of the Trustees under the terms of this Memorandum of Mortgage shall be
limited to the property as set out in the schedule hereto, and shall not constitute a debt
payable by the Trustees or their successors in office out of any other fund or property.”