From the Worldwide Faith News archives www.wfn.org
NEW INVESTMENT AND LOAN CORPORATION ELECTS
05 May 1996 11:51:04
95287 NEW INVESTMENT AND LOAN CORPORATION ELECTS
OFFICERS FOR ITS INTERIM BOARD OF DIRECTORS
By Julian Shipp
LOUISVILLE, Ky.--Authorized by the 207th General Assembly to build a $500
million capital loan fund by the year 2000, the Presbyterian Church
(U.S.A.) Investment and Loan Program, Inc. has elected officers for its
interim board of directors.
Officers for the new corporation, which was approved after nearly a
year of extensive development, are Anne Stelle of Chicago, chair; Alvin
Pruyear of New York City, vice chair; Stelle, interim president; Carolyn
Shain of Louisville, Ky., secretary; and G.A. "Pat" Goff of Louisville,
Ky., treasurer. The position for vice president is open at this time.
The officers were elected Aug. 13 during a meeting between the New
Funds Development for Church Loans Team and the transition board of the
PC(USA) Investment and Loan Program, Inc.
Remaining transition board members previously elected by the General
Assembly Council are Duane Black of Yucaipa, Calif.; Michael Harreld of
Louisville, Ky.; Sandra Hawley of Bloomington, Minn.; and Richard Lohrer of
Palos Verdes Estates, Calif. Although they will serve a one-year term, all
are eligible for nomination to the 15-member permanent board, which will be
elected next year.
The loan fund program, proposed first by the Presbyterian Foundation
and already in use by several mainline denominations, involves issuing
"investment certificates" to Presbyterian investors at "competitive rates"
and using the invested funds to provide below-market rate loans to church
institutions for capital needs.
According to Terry Young, who helped develop the Foundation's original
proposal, the financial principle of the program is simple: the corporation
offers loans at 2-3 percent interest higher than the interest it pays on
the investments. The "spread" pays the cost of the program and generates
additional mission dollars.
The denomination's current church loan fund is slightly over $100
million, with much of the money heavily restricted. A line of credit up to
$227,367 from the Church Loan Fund will be extended to the corporation in
1995 and additional line of credit source alternatives for future years
will be presented for action during the September GAC meeting.
According to program officials, the corporation will report to the
General Assembly through the GAC and will work through Corporate and
Administrative Services, the National Ministries Division and its associate
for Evangelism and Church Development.
"I think this is one of the most important things this denomination
has ever done," said the Rev. Rosalie Potter, one of the joint team
members from Orlando, Fla.
Stelle said one of the corporation's main priorities at this point is
to conduct a "rigorous" survey and marketing program to see what the
current interest level is among potential investors and, if favorable,
provide comprehensive information on the program to volunteers, committees,
and employees in synods and presbyteries. The board members strongly
"If we're going to have $500 million over three years, we've got to do
some serious marketing of the loan program," Hawley said.
"Somehow we need to create a clear and consistent message to go out to
our synods and presbyteries," Puryear said.
Even so, Lohrer said caution is also warranted. Referring to this
year's financial scandal in the Episcopal Church in which a former
treasurer embezzled $2.2 million, Lohrer strongly recommended that
financial controls be written in the corporation's by-laws to prevent any
one person from abusing the funds. Goff suggested one way to eliminate this
possibility would be to require two people to sign checks over a specified
"I don't want a situation where one person can sign checks and have
access to the funds in this corporation," Lohrer said.
For more information contact Presbyterian News Service
Presbyterian Church (U.S.A.), Louisville, KY 40202
phone 502-569-5504 fax 502-569-8073
E-mail PCUSA.NEWS@pcusa.org Web page: http://www.pcusa.org
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