Loans to United Methodist Churches and Institutions
UMDF has developed materials and expertise in providing assistance to religious organizations in the following ways:
(A) Permitting the borrower to pledge property which is impaired by the terms of an implied or explicit trust which encumbers the use and creates a reversionary interest of the property to the United Methodist Church;
(B) Giving weight to factors which are not generally accepted by commercial lenders such as attendance and giving patterns that are not, by their nature, guaranteed income flow to the borrower;
(C) Structuring the loan and enforcement terms in a manner which permits the church or agency to suspend or delay payment of principal, or principal and interest, pending capital fundraising activities founded in church and religious doctrine and principles;
(D) Providing flexible terms and concessions to churches experiencing financial disruptions or missional priorities impairing their ability to pay their loan;
(E) Confirming that the loan has been reviewed and approved by The United Methodist Church's relevant leadership body so that the use of the funds is consistent with The United Methodist Church's practices and purposes; and
(F) Providing consulting services to church leadership about the financial organization, operations, and strength of the church which provides ancillary benefits to the operation of the church whether or not the church becomes a borrower of UMDF.
Both in the making of the loan and in the enforcement of the payment terms, UMDF takes the position that repayment of the loan should not be at the expense of, or in place of, the local church or agency engaging in ministries within the church or in the community where the church is located.