Questions:

Why do Churches issue bonds?
Which Church denominations issue bonds?
What criteria are used in approving Church financing?
How does a Church repay interest and principal on its bond issue?
Are Church bonds safe investments?
What are First Mortgage Church Bonds?
In what amounts can Church bonds be purchased?
Will the interest income vary in amount?
How do interest yields on Church bonds compare with yields offered on other types of investments?
How long can money be invested in a Church bond?
When is the amount invested paid back to the bondholders?
Do investors pay a commission when purchasing a Church bond?
Are Church bonds a marketable investment?
What is a book entry bond?
What happens when bonds mature or are called?
Where can bonds be purchased?

Answers:

Why do Churches issue bonds?

Churches issue bonds for various reasons such as: financing new construction, expanding existing facilities, refinancing an existing debt, or for major capital purchases. Long term financing can provide your Church with fixed payments protected from unstable market conditions.

Which Church denominations issue bonds?

All denominations issue bonds; however, we only serve Churches dedicated to strengthening the moral foundation of America and promoting Christian spiritual principles. Once this is established, the Church's quality of credit determines which loans are selected for underwriting and offered to investors.

What criteria are used in approving Church financing?

We have developed conservative criteria for sound Church financing such as: minimum per-member giving ratios, past history of growth, and favorable percentage of Church equity to proposed debt. We also utilize a state-of-the-art computer system to calculate and analyze various financial ratios and cash flows to achieve an accurate picture of your Church's financial health.

How does a Church repay interest and principal on its bond

issue?

Churches deposit a portion of their weekly or monthly income into a sinking fund account at the paying agent bank to ensure orderly payment of interest and principal to bondholders. Churches agree in advance that payment will be made before other operating expenses are paid.

Are Church bonds safe investments?

No one can guarantee the safety of any investment. Careful selection of issues, financing principles and sound underwriting are just a few of the reasons Church Bonds are good investments.

What are First Mortgage Church Bonds?

First Mortgage Church Bonds constitute a promise to pay principal and interest and are secured by a first mortgage lien on the property of the issuing Church.

In what amounts can Church bonds be purchased?

Bonds are normally available in multiples of $1,000 in fully registered form; however, we offer $250, or multiples thereof, for IRAs or custodial accounts.

Will the interest income vary in amount?

Interest rate on the specific bond you purchase is fixed. Interest on simple interest bonds is payable either quarterly or semi-annually depending on the Issuer until your bond matures. Interest on compound interest bonds is payable at the time your bond matures.

How do interest yields on Church bonds compare with yields

offered on other types of investments?

Generally speaking, Church bond interest yields are higher than yields offered on other corporate bonds or returns offered on savings instruments.

How long can money be invested in a Church bond?

Most Church bond issues are set up with serial maturities. In a serial maturity, the issuer designs principal repayment so that each bond matures on a specific date over a period of years until the entire balance has been repaid. Investors have the option to choose a maturity from 1 to 15 or 20 years.

When is the amount invested paid back to the bondholders?

Usually the amount invested is paid back to the bondholder at the stated maturity date however, the bond may be called by the issuer prior to the maturity date, at which time the owner receives the entire principal amount originally invested plus interest up to the call date.

Do investors pay a commission when purchasing a Church 

      bond?

The investor pays no commission in the purchase of Church bonds. We are compensated by the Church issuing the bonds.

Are Church bonds a marketable investment?

Neither the Church nor the trustee is under obligation to pay funds before the stated maturity date; however, for a standard 5 percent brokerage commission, we will assist in selling your bond.

What is a book entry bond?

Most bonds are purchased as "book entry" to relieve bondholders from the responsibility of holding a bond certificate. Interest payments and principal payments are automatically sent to the bondholder. Although a certificate may be obtained, we highly recommend purchasing bonds in book entry form.

What happens when bonds mature or are called?

At maturity, "book entry" bonds will automatically be paid to the bondholder. "Certificate" bonds must be mailed to the trustee bank. At that time, the trustee bank will remit a check for the amount of the bonds plus any interest due. The trustee bank notifies registered bondholders if their bonds are called.

16. Where can bonds be purchased?

A. Church bonds can be purchased from a registered representative. By simply calling Toll Free 1-866-459-3783, we will put you in touch with a professional ready to assist you with your investment decisions.

If you have questions at any time, please don't hesitate to contact us at:

ChurchBondInvesting.com

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