Reformed Presbyterian Minutes of Synod 1993

52 1993 MINUTES OF THE SYNOD OF THEjudgment in the decision to become surety.If a loan guarantee is sought from a presbytery, its ad interim commissionsometimes gives a guarantee for the presbytery, but a commissionmay or may not be wilUng to take such an action on its presbytery's behalf.Paper 92-3 was apparendy precipitated by a loan that was made in 1991.In that instance, before the Tmstees had taken action on the loan application,we were approached by the Great Lakes-Gulf Presbytery ad interimcommission with an urgent request to grant the loan quickly and with anunsolicited offer to guarantee the loan. After consultation with the commission,including an expression of our concerns regarding the wisdom ofthe purchase and the loan, the Tmstees granted the loan under the termsoffered by the commission. As in any of our deaUngs with an ad interimcommission, it was our assumption that the action was taken for the entirepresbytery.The Tmstees have administered the loan fund on Synod's behalf andhave been open to Synod's counsel on our poUcies. We beUeve that thecurrent policy is sound and that we have exercised it in a manner consistentwith the teaching of Scripture. Your Tmstees have sought to behaveresponsibly by ensuring that the loans made are secured by the propertybeing purchased (which, even in the event of a total default, probably couldnot be sold immediately) and by individuals or groups with sufficientmeans to make payments back into the loan fund. This practice increasesthe likelihood that new loans can be made in the future. We have concludedthat we should not recommend a change in the loan guarantee policy (seeRecommendation 5).BUILDING LOAN FUNDIn addition to general mortgages using invested funds, refened toabove, Synod's Tmstees operates a "Building Loan Fund." This money isloaned to congregations, pastors, or employees of Synod according topolicies approved by Synod (see 7979 Minutes of Synod, pp. 170-173). Afinancial report on these funds is in the Treasurer's Report. The assets ofthis fund as of 12/31/92 totalled $742,128. Last year, Synod approved therecommendation of the Home Mission Board that the interest on theunloaned balance of the Building Loan Fund and one-half of the fundsreceived by the Tmstees of Synod from the sale of properties of disorganizedcongregations (net after all arrangements with presbyteries, etc.)will be transfened to the new Home Mission Board Kingdom BuildersFund (See 7992 Minutes of Synod, pp. 31-32). The amount transferred for1992 was $2,476.13, which was the interest on unloaned funds and$22,712.57, which was one-half of the proceeds from the sale of theMarion, Iowa, RP Church parsonage. In addition, $27,742.67 cash was