Chapter VIII also vests the presbytery
with certain powers when the property of a particular church is
being sold, mortgaged, encumbered, or leased:
- A particular church shall not sell, mortgage, or encumber
its real estate without the permission of presbytery. G-8.0501.
- A particular church shall not lease its real estate used
for worship or enter into a lease for more than five years
on its other real estate without the permission of presbytery.
G-8.0502.
Generally, these provisions ensure the presbytery will be involved
when the particular church begins a significant real estate project.
These may include land acquisition, building expansion, rehabs,
sales, and relocations. Because of these provisions in Chapter
VIII, as well as other provisions vesting the presbytery with
authority, most lenders require the presbytery to guarantee loans
to the particular churches.
Section G-8.0500 Selling, Encumbering, or Leasing Church Property,
and Section G-8.0700 Exceptions, are the only sections in the
present Chapter 8 not included in the new Chapter 6 Church Property
adopted in 1982 by the Presbyterian Church in the United States.
With those exceptions, all of the churches in both former denominations
entered the Presbyterian Church (U.S.A.) in 1983 with the same
constitutional provisions for holding, using, and disposing
of church property.
The purpose of the requirement that presbytery approve selling,
mortgaging, or leasing church property is to enable the presbytery
to participate in planning an affordable project for the use
of its property and to avoid legal pitfalls. The rules were
adopted in 1935, 1941, and 1946 at a time when many churches
were facing financial difficulties and have enabled presbyteries
to provide assistance that often the congregation was unaware
presbytery could offer.
Exceptions
Section G-8.0700, Exceptions, provided a window of opportunity
for eight years after June 1983 during which congregations of
the former Presbyterian Church in the United States might vote
to excuse themselves from that provision of the chapter by which
they had not been bound before reunion. Once this exception
has been properly adopted and the presbytery notified it is
legally binding and runs as long as the congregation or its
legal successors exist, or until the congregation votes to accept
section G-8.0500. For this reason, to avoid future disputes,
it is important that the session of an exempt congregation hold
the record of this action with the deeds and other property
records, and that presbyteries that have received notice of
such actions also hold the record where it will be available
when needed. |