Synod
of the Pacific
FORM A
Application
for New Synod Loan:
Line of Credit
or Amortized Loan
Construction,
Repairs and Renovations,
Site or Building
Purchase,
Pastor Housing
and Other Projects
Instructions:
Please send the
completed original application to your Presbytery/Mission
Area office. Include the following:
Financial Statements
(balance sheet and revenue/expense) for current year and past 2 years
Current church
budget and next proposed budget
Preliminary drawings
and plans (file size please)
Construction
contract
Appraisal (for
site and building purchases only)
Send a
complete copy to:
SYNOD
OF THE PACIFIC
ATTN:
Loan Department
200 Kentucky
St. Suite B
Petaluma,
California 94952-2879
Consultation and assistance
is available by contacting Chuck Tillson, Loan Coordinator, at
(800) 754-0669
Please call your
local Presbytery for their application deadlines and procedures.
Synod’s application deadline is the 10th
of the month prior to their scheduled meeting dates in February, May,
and October.
SYNOD OF THE PACIFIC
FORM
A
APPLICATION
FOR SYNOD LOAN
 Line of Credit 
Amortized
Section
A: General Information
Amount Needed $_______________________________
Estimated Date Funds will be Needed __________________________
Purpose of
loan: ___________________________________________________________________________________________
Name of Church___________________________________________________
PIN________ Presbytery_________________
Phone (_____)
__________________ Fax (_____) _________________ E-Mail_______________________________________
Street Address
_____________________________________________
City______________________ State___ Zip__________
Mailing Address (if
different) ________________________________________________________________________________
Titleholder (exact corporate
name) ___________________________________________________________________________
Date Church was organized
___________________ Church was formerly known as
_________________________________
Primary Contact Person
for this Loan Application_____________________________________ Title
____________________
Phone (_____) __________________
Fax (_____) _________________ E-Mail_______________________________________
Pastor _____________________________________
Phone (_____) __________________ At this Church Since ____________
Clerk of Session ___________________________________
Phone (_____) __________________ Term Expires ____________
Persons Authorized to
Draw Loan Funds: ______________________, ______________________,
______________________
(Authorized Draw List can be revised at any time by Clerk of Session
on Church Letterhead)
Type of Church: (check
all applicable categories)

New Church Development 
Urban 
Suburban 
Non-metropolitan

Native American

Asian 
Black 
Caucasian

Hispanic

Other ________________________________________________________
Section
B: Information about your Community
Radius of community
in miles _____________ Current
Population ______________ Expected 5 year growth ____________
Factors
contributing to changes in population (cite sources): _____________________________________________________
_________________________________________________________________________________________________________
_
Economic base of community:
_______________________________________________________________________________
_________________________________________________________________________________________________________
_
Approximate price of
average home $______________________
Three churches closest
to yours:
DenominationApproximate
MembershipDistance from your Church
_________________________________________________________________________________________
_________________________________________________________________________________________
_________________________________________________________________________________________
Section
C: Church Statistical Information
Communicant church membership
(past five years):
This Yr(est) ____________
Last Yr: 200__ ___________ 200__
_____________ 200__ ___________
200__ ____________
Average Attendance at
Sunday Worship Service(s) (past five years):
This Yr(est) ____________
Last Yr: 200__ ___________ 200__
_____________ 200__ ___________
200__ ____________
Expected Membership:One
year ________________ Three years ________________
Five years ________________
Explanation for Expected
Change in Membership: ___________________________________________________________
_______________________________________________________________________________________________________
Annual membership mobility
rate (approximate) __________% Age of majority
of members: _______ to ______ years
Resident family membership
units (number of pledging units)
This Yr(est) ____________
Last Yr: 200__ ___________ 200__
_____________ 200__ ___________
200__ ____________
Church School:
Enrollment past year ____________________
Average attendance past year ___________________
Approximate average
family income in congregation $ ____________________________
Please explain any significant
changes in Church Statistical Information expected as a result of this
project: _____________
_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
Section
D: Church Financial Information
Operating
Budget (excludes building funds and affiliated operations such as pre-school)
This Yr.
(Budget)
Last Yr.
200__
200__
200__
200__
General Operating Revenue
A
Pledged Revenue
B
Non-Pledged Revenue
C
Operating Revenue
from other sources (specify:________________________)
D
Total General Operating Revenue
*
(A+B+C)
E
Total General Operating Expenses
General Operating Surplus or
Deficit
(D minus E)
* Use this number in
Section E (Mission Giving), row A.
Building Fund Campaign:
Total
amount pledged $ ____________________ Campaign pledge period from ____________
to ____________ (dates)
Number
of Families Pledging _______________ Average pledge per
family ___________________
Campaign
directed by Church Financial Campaign Service of PC (USA)?

Yes  No If no, provide copy
of contract.
Are
future Campaigns planned?  Yes 
No If yes: from
_______ to_______ and
from _______ to_______
Borrowing:
Existing Loans
(include all debt to banks,
Synod, G.A., Presbytery, church members, etc.)
Collateral
Note Amount
Unpaid Balance
Maturity Date
Payment
Interest Rate
Projected
New Loans
Synod
Loan
N/A
N/A
N/A
Please explain any differences
between the above financial summary and the financial statements provided:
_____________
_________________________________________________________________________________________________________
Section
E: Mission Giving
This Yr. (Budget)
Last Yr. 200__
200__
200__
200__
A
Total General Operating Revenue
*
B
Per Capita
Expense
C
GA/Synod/Presbytery
Pledged Giving
D
Special Offerings
(OGHS, Pentecost, Christmas/Joy, Peacemaking)
E
Total Qualifying Mission Giving
(B+C+D)
%
Mission Giving to Revenue**
(E 
A)
%
%
%
%
%
*
From Section D (Budget Info), Row D
** Interest Rate Discounts
of up to 0.75% are available based on your most recent full year’s
Mission Giving Percentage. (0.75% discount at or above 10.0% giving;
0.50% discount from 7.0% to 9.9%; 0.25% discount from 5.0% to
6.9%.) Please consult with Synod staff for exact
qualifications and calculations to determine what interest rate you
will qualify for.
Section
F: Mission Strategy Statement
On a separate paper,
describe the congregation’s Mission Design
or Mission Strategy for the next twelve months, including specific goals
and objectives. Describe how the proposed project will facilitate
implementation of these goals and objectives.
Section
G: Project Financial Plan
COST
(Complete only as applies)
A.
Pre-existing Building or Site PurchasePurchase Price
$ ___________________
Appraised Value $ ___________________
Renovation or other costs $ ___________________
Appraised By ______________________
Total Project Cost $ ___________________
B.
New Construction or Addition
Size
_____________ sq. feet
Cost per square foot $_____________
Construction to begin on ______________, 20____.
1.
Construction Contract (check one:  estimated 
firm) $ ___________________
2.
Architect Contract (check:  maximum cost contract 
revision clause) $ ___________________
3.
Furnishings, parking, insurance, professional fees (10% of contract
is suggested) $ ___________________
4.
Contingencies (bid overage and unscheduled costs.
15% is suggested) $ ___________________
5.
Inflation factor (minimum 1% per month from now
until construction completion) $ ___________________
Total Project Cost $ ___________________
C.
Remodeling / Renovation / Rehabilitation
Construction to begin on ____________, 20____.
1.
Construction Contract (check one:  estimated 
firm) $ ___________________
2.
Architect Contract (check:  maximum cost contract 
revision clause) $ ___________________
3.
Furnishings, parking, insurance, professional fees (if any) $
___________________
4.
Contingencies (bid overage and unscheduled costs. 20% is suggested)
$ ___________________
5.
Inflation factor (minimum 1% per month from now until construction completion)
$ ___________________
Total Project Cost $ ___________________
D.
Other Project or Use for loan proceedsTotal Cost
$ ___________________
Describe:
___________________________________________________________________________________________
____________________________________________________________________________________________
RESOURCES
E.1.
Cash on Hand from building campaign pledges$ ___________________
2.
Additional Income expected from building campaign before project begins$
___________________
3.
Unborrowed Cash from other sources (source: ____________________________)$
___________________
4.
Additional Income expected from other sources before project begins$
___________________
(specify source: _________________________________)
5.
Cash already expended on project$ ___________________
6.
Other Loans (specify source & terms: _________________________________)$
___________________
7.
Synod Loan (this application)$ ___________________
Resource
Grand Total(must equal Project Grand Total above)$ ___________________
Section
H: Standard Terms and Conditions
All Loans
Applicant shall
have raised, in unborrowed cash, at least 10% of the project cost before
commencing or executing contracts.
Applicant shall
have conducted a special funding campaign and received pledges over
and above the regular pledges to the program of the church to provide
for repayment of the loan, or shall have made other specific provisions
acceptable to Presbytery and Synod for loan repayment.
Loan proceeds shall
be used only for the purposes for which they were appropriated.
The applicant shall
incur no financial obligations which are not scheduled as part of the
approved Financial Plan without prior consent from the Presbytery and
the Synod. Terms and outstanding balances of all loans shall be acknowledged
by being printed in the minutes of each annual meeting of the congregation,
until fully repaid.
All borrowers with
loan balances over $500,000 will be required to provide annual financial
statements to the Synod within 90 days of their financial year end.
Annual or monthly financial information may also be required of other
accounts as deemed necessary by the Synod.
Synod reserves the
right to suspend credit if applicant’s payments are not within term,
or if Synod deems there is any other substantial breach of loan covenants.
The Synod reserves
the right to revise the interest rate in the event that Synod has a
change in banking relationships and/or any significant change in its
cost of borrowing.
Extension or conversion
to an Amortized Loan is not automatic. A new Initiation Fee will
be charged on any extension or conversion.
The interest rate
will increase by 1% at the maturity date and every anniversary thereafter
if the loan has not been extended or converted.
There is an Initiation
Fee of 0.50% of the loan amount approved. The loan will be canceled
if Initiation Fee is not paid within 60 days of approval. Initiation
Fees are non-refundable.
The loan will be
canceled if not drawn within one year of approval date.
Line of Credit
and Amortized Loans over $25,000 will be secured by a Deed of Trust
on real property. All loans requiring a Deed of Trust will also
require standard ALTA Title Insurance.
All loans shall
become immediately due and payable when a congregation sells any portion
of real property on which a Synod loan has been made and or at such
time as the borrower is no longer under the jurisdiction of the
Presbyterian Church (U.S.A).
Construction
Loans Only
Construction contract
will be signed only after receiving a commitment letter from the Synod
advising of loan approval.
Building fund pledge
receipts shall be held in a separate bank account, and shall be applied
directly to actual project costs or to reduction of project debt.
The owner governing
body shall require proof of construction bid and performance bonds,
builder’s risk and vandalism insurance during the project’s construction,
and shall carry fire, extended coverage, and liability insurance on
the full amount of the contract, and shall require documentary assurances
at the conclusion of the project to indemnify the owner against mechanics’
liens.
All contractors
shall provide proof of liability insurance to protect the owner against
construction errors and omissions, including a guarantee period of one
year from the date of acceptance by owner. All contracts shall
be bonded.
The applicant shall
provide to the Synod proof of Course of Construction insurance.
Applicant shall
engage the services of companies, contractors and other professionals
who are equal opportunity employers
Building design
shall accommodate the needs of persons with disabilities and comply
with the Americans with Disabilities Act.
Building design
shall incorporate measures to make the building energy efficient.
All construction
and renovation shall comply with all local building codes and zoning
regulations.
Site
Loans Only
Soil tests must
be done before any site is purchased in order to assure that the selected
site is suitable for building.
An environmental
audit shall be conducted on any previously developed sites.
If any of the above
conditions cannot be met, please request a waiver of the conditions
on the following page. State the reasons for
your request as part of this loan application.
COVENANT
PAGE
Design,
Construction, and Financial Covenant
Select and initial ONE
of these statements, then sign below:
1)
__________ The applicant congregation hereby agrees to abide
by all terms and conditions of this loan as found on the previous page
of this application. We understand that conditions 13 through 21 apply
only to construction projects (including major repairs and renovations),
and that conditions 22 and 23 apply only to site purchases.
2)
__________ The applicant congregation hereby requests
a waiver of certain loan terms and conditions as found on the previous
page of this application. In the space provided below we explain
any requests for waivers of terms and conditions.
___________________________________________________
___________________________________________
Clerk of Session
Date
APPLICATION
for WAIVER
The applicant congregation
wishes to request a waiver of the following condition (s) with the
following explanation:
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
Section
I: Approvals
CHURCH/BORROWER (SESSION
REQUEST)
On
______________________, 20 ____, the Session
of _________________________Church
of ________________________ (City/State), subject to the approval of
Presbytery, VOTED to apply for a (choose one):
 Synod
Line of Credit in the amount of up to $ _____________________, for 24
months, with payments of interest only,
based
on the Synod’s internal cost of funds (less any mission giving discount).
Principal will then be refinanced by a:

Synod Amortized Loan  Bank Loan 
General Assembly Loan or  Other (Specify ________________________)

Synod Amortized Loan in the amount of up to $ _____________________,
for 60 months, with payments of principal and interest based on the
Synod’s internal cost of funds (less any mission giving discount),
based on a ______ year amortization
schedule
(20 year maximum).
The Session believes
the statements and data contained herein to be accurate, and that the
proposed financial obligations are within the ability of the church
to repay, and submits this application for consideration. The
Session understands and agrees to the
“Standard Terms and Conditions” in Section
H of this application.
________________________________________________________________________________________
Clerk of SessionDate
CONGREGATION APPROVAL
(Only for loans requiring a Deed of Trust)
On
________________, 20 ____, the Congregation
of _________________________Church
of ________________________ (City/State),
voted to approve execution of a deed of trust on church property to
secure this loan.
________________________________________________________________________________________
Clerk of SessionDate
PRESBYTERY APPROVAL
On
____________________________, 20 ____________, the Presbytery of
________________________________________
In accordance with the Book of Order and its own procedures approved
this application for a (choose one):

Line of Credit for 24 months

Amortized Loan for 60 months
in the amount up to $ _____________________________ .
The Presbytery also:
Reviewed and
approved this project as to mission priority;
Gave consideration
to participation in the project’s funding
Reviewed and
approved the Financial Plan as fiscally responsible.
Agreed to guarantee
scheduled repayment of said Synod Loan.
Requests that
loan proceeds to be disbursed by Synod directly
to the Applicant.
_______________________________________________
_________________________________________
Presbytery/Associate Synod Executive/Stated Clerk
Date
SYNOD APPROVAL
On
, 20
, the SYNOD OF THE PACIFIC, in accordance with its own procedures, VOTED
to APPROVE a Synod:

Line of Credit for 24 months

Amortized Loan for 60 months
in the amount up to $ _____________________________
at a rate of ___________% based on the Synod’s internal cost of funds,
which includes a discount of ________% based on Mission Giving history.
_______________________________________________________
_____________________________
Synod
Executive/Director of Business Services/Stated ClerkDate
Synod of the
Pacific Form A
Page
Revised March, 2007