Policy Number:  21

Title:  Loans From The Centennial Challenge Fund

In order to meet the requirements of the various Canons of the General Convention and the Diocese, the following guidelines should be followed in the making of loans to any congregation or organization of' the Diocese.

1.      Loans to Parishes.  All loans to parishes shall follow the following procedures.

a.       All loan applications must be signed by the Rector, Senior Warden and Junior Warden. Such application must set forth that the request for a loan has been approved by action of the Vestry and a regular meeting thereof.

b.      The Board can approve the application at any time in the process subject to:

1)      The loan application must have received the approval of the Standing Committee at a regular meeting thereof.

2)      The loan application must have received the approval of the Bishop.

c.       In order to impress upon the congregation and its vestry the obligation being incurred, a promissory note and real estate mortgage will be executed. The name of the mortgagor will be the incorporated name of the parish and the name of the mortgagee will be ‑ "The Diocese of South Dakota" (which is the incorporated name of the Diocese).

d.      Depending on the circumstances, whether the mortgage is recorded or not will be determined by the Board in consultation with the Chancellor.

  2.       Loans to Missions and Organizations.  All loans, other than parishes, shall follow the following procedures.

a.       All loan applications of an Aided Parish or an organized mission may be made either by the Vestry of the Aided Parish or the Bishop's Committee of the Organized Mission at a regular meeting thereof or by a staff member at the Diocesan Office.

b.      All loan applications of organizations and committees of the Diocese may be made either by the governing body of that organization or committee at a regular meeting thereof or by a staff member at the Diocesan Office.

c.       All loan applications of Aided Parishes, Organized Missions, organizations and committees must have received the approval of the Diocesan Council at a regular meeting thereof.

d.      All loan applications which involve a consecrated or dedicated church or chapel must be approved by the Standing Committee.

e.       All loan applications which involve a consecrated or dedicated church or chapel must be approved by the Bishop.

f.        In order to impress upon the congregation or organization and its vestry, bishop's committee or other governing body the obligation being incurred, a promissory note and real estate mortgage will be executed. The name of the mortgagor will be ‑ "The Chapter of Calvary Cathedral" and the name of the mortgagee will be ‑ "The Diocese of South Dakota".

g.       Depending on the circumstances, whether the mortgage is recorded or not will be determined by the Board in consultation with the Chancellor.

 3.  Special Provisions.  The following provisions shall be applicable to all loan applications.  

a.       All construction involving expenditures in excess of $5,000.00 must have a written construction contract or similar instrument setting forth the conditions of the construction which shall be submitted with the loan application.

b.      If a performance bond is not required then the agreement shall require the withholding of sufficient moneys pending final approval of the completed project and penalty clauses for failure to perform in a timely manner.

c.       If blueprints or drawings have been done, a copy of the same shall accompany the application for a loan.

d.      A copy of the loan application, construction agreements, blueprints, approvals of the Standing Committee and Bishop, if required, and the like shall be filed with the Diocesan office.

e.       All loan instruments, before the disbursement of funds, shall be reviewed and approved by the Chancellor.

f.        The Board shall make such other requirements as it deems appropriate to determine the financial capability of the involved group to repay the loan.