SYNOD LOAN APPLICATIONS
The Synod has accumulated sums of money
over the years from property sales which it holds within a
specified Capital fund. These funds generate interest which is
used to make grants as specified by the Finance Policy. The
capital is also used to make loans to churches who need sums of
money to fund building projects and the like. Such loans are
available to Churches and Synod committees for a period not
normally exceeding five years. The amount of each loan depends
mostly upon the resources available by the Church or Synod
committee for repaying the loan and the total lending by the
Synod is restricted only by the amount available within the
Church Life and Mission Capital fund.
The rate of interest charged is that which would have been
received by the Synod on its COIF account. The interest rate is
set at the commencement of the loan and adjusted at each
anniversary of the loan. The loan interest is calculated in June
and December of each year. A statement of the December loan
balance is sent to each borrower in January for confirmation for
audit purposes. Each Church or Synod committee is expected to
pay the interest charged and a portion of the capital each year.
If churches are able to repay their loan earlier than the period
specified, early repayment is recommended.
Each Church or Synod Committee will need to complete a loan
application form and provide evidence that the church/ committee
has the means of repaying the loan. A spreadsheet covering the
period of the loan showing the income available to the church
and the loan repayments are a helpful way of providing evidence
of the ability to repay the loan.
Loan applications are considered at a full sitting of the
Resources committee and completed applications need to be sent
in good time to the Finance Officer.
