| |
|
|
|
|
|
|
| |
Frequently Asked Questions
Questions About Investments |
|
| |
|
|
|
|
|
|
| |
- I have
heard that I can “designate” my investment to
support a particular church. What does this mean?
- When
I “designate” my investment in support of my
church (or another church), is my investment tied directly
to that mortgage?
- Does
the investment revert to the church at the end of its maturity?
- If my
church has a loan with the program, do I have to keep my
investment in the program for the length of the church’s
loan (for example 20 years)?
- When
my church pays off its loan, can I continue investing in
the program?
- Is the
sale of the program’s notes regulated?
- What
happens if I lose my certificate?
- Can
I send a personal check with my application?
- Can
I name a beneficiary of my note?
|
|
| |
|
|
|
|
|
|
| |
 |
|
| |
 |
| |
Answers
About Investments |
|
| |
|
|
| |
- I have heard that I can “designate”
my investment to support a particular church. What does
this mean?
In order to borrow funds at the Program’s base
interest rate, congregations commit to building an investment
base equal to 20% of the initial loan amount. This helps
replenish the funds available for loans to other congregations.
The investment base must remain at a minimum of 20% of the
outstanding balance of the loan over the life of the loan.
When people “designate” their investment in
support of a particular church, then that amount is credited
toward the church’s 20% requirement.
When the investment level exceeds 20%, the church can earn
rebates on their interest paid. Rebates are paid at investment
levels of 35%, 50%, 75% and 100% and could reduce their
effective interest rate on the loan by as much as one full
percentage point.
When you “designate” your investment in support
of a borrowing church, you can help them qualify for the
rebates. By lowering the cost of their mortgage, churches
can repay the loan faster or direct the savings back into
the mission of the church.
- When I “designate”
my investment in support of my church (or another church),
is my investment tied directly to that mortgage?
No. Your investment is part of a pool of funds participating
in all of the borrowers that have a mortgage with the Program.
Your “designation” is a symbolic way of showing
your support for a particular borrower. This designation
does not affect the risk of your investment or your return
on the investment. Likewise, the length of your investment
(six months up to five years) is independent of the length
of the church’s loan.
- Does the investment
revert to the church at the end of its maturity?
No. This is a personal investment in which you maintain
control of the funds. At maturity, you have the option of
renewing the investment, changing the terms of the investment
or withdrawing the money.
- If my church has a
loan with the Program, do I have to keep my investment in
the Program for the length of the church’s loan (for
example 20 years)?
No. Borrowing churches are required to maintain an investment
level of 20% of the outstanding loan balance to receive
the base interest rate. As an individual investor, you may
select the length of maturity that best fits your investment
needs. For instance, you can invest for as short a period
as six months up to five years. You may also renew your
Note each time it matures. It is the responsibility of the
borrowing church to achieve and maintain the investment
requirement.
- When my church pays
off its loan, can I continue investing in the Program?
Yes, certainly. Your investment supports not only your church
but also other Presbyterian churches across the country.
You may request that your investment support another church
with a Program mortgage which will help that church earn
rebates on the cost of their mortgage.
- Is the sale of the
Program’s Notes regulated?
Yes. The securities of the Program are registered, exempt
from regulation or otherwise qualified for offer and sale
in all 50 states as well as Puerto Rico and the District
of Columbia. However, this does not imply that the securities
are “approved” by the states or the Federal
government, only that the Program has met the applicable
requirements of each state.
The Program’s agents have passed the Series 63 examinations
and are registered where required.
- What happens if I lose my certificate?
If your certificate is lost or stolen, call the Program
office at (800) 903-7457, ext. 5593.
- Can I send a personal check with my
application?Yes. You may send a personal check, money
order or certified check. However, do not send cash.
- Can I name a beneficiary of my Note?
Yes. Call the Program office for the necessary form at 1
(800) 903-7457, ext. 5593.
|
|
| |
|
|
|
|
|
|
| |
|
| |
Note: The Presbyterian Church (U.S.A.) Investment And Loan Program, Inc. is a religious nonprofit organization; therefore, our investments are not insured by the FDIC, SIPC or any other governmental agency.
This web site and the material provided are not offers to sell or solicitations to buy Term Notes. The offer is made solely through and by the Offering Circular, which you should read carefully before making an investment decision. The Notes are subject to certain risk factors as described in the Offering Circular. Term Notes are offered only in states where authorized. |
|
| |
|
|
|
|
|
|
 |
|
|
|
|
|
|
|
|
