BOA ACTION: Rejected
GCRCC Status: forwarded for April 2011 BOA action
Introduced by: Southern Michigan Conference Delegation
Written by: E. Harold Munn, Jr.
Related to Paragraph(s) #: 6400 F
Whereas:
The denomination is the ultimate owner of all properties held in trust for the benefit and use of the Free Methodist Church of North America, and,
WHERE AS: There has developed confusion concerning the required prior approval by the Conference Superintendent and the Board of Directors of the FMCNA for mortgaging of properties as between granting approval and actually becoming a cosigner or a co-maker of the mortgage(s) and,
WHERE AS: The result may be inadvertent entering into cosigner relationships exceeding the assets of the approving body compromising the integrity of the mortgage itself and adversely impacting the funding of Conference and Denominational ministries, and,
WHERE AS: Confusion has already resulted from this misinterpretation being “standard practice” for the Conferences when it actually is a condition imposed by the lender and is not incumbent on the Conference or denomination as a condition of approval to mortgage,
Therefore, be it resolved:
That Paragraph 6400 F. of the Book of Discipline be amended by the insertion of the following sentence following the first sentence of said paragraph which ends:
“…subject to the review and approval of the Conference Board of Administration.
“Granting of approval by the Conference Superintendent and by the Board of Directors of the FMCNA neither commits or implies that either the conference or the denomination is joining the local Board of Administration as a cosigner or co-maker of any mortgage or encumbrance of property.”
Does the resolution have a direct relationship to the vision and mission of the Free Methodist Church?
Yes.
How will the proposed change help us accomplish our vision and mission?
1. It requires that the borrowing entity have the covering resources, and cannot fall back on the conference.
2. It precludes the conference pledging the same resources for multiple mortgages.
3. It requires the lender to do “due diligence.”
4. It precludes the attaching of ministry funding for local churches.
5. It enables the conference to maintain its support of missions, general church administration and its own program.
6. It eliminates the placing of “due diligence” on the conference when that is the duty of the lender and between the lender and the borrowing entity.
The Resolutions Committee rates this resolution as:
(A) Support – recommend adoption
No related posts.
