History and Governance of The Presbyterian Church Building Corporation
The Presbyterian Church Building Corporation was incorporated under the Canada Corporations Act in 1968. The Corporation is incorporated without share capital under the laws of Canada and is classified as a charitable organization under the Income Tax Act. The Corporation’s books of account and financial statements are audited annually. The Corporation holds an annual meeting of its twenty-one directors, who represent each Synod of The Presbyterian Church in Canada, and who include six ordained ministers of The Presbyterian Church in Canada and fifteen members of the laity. The directors are appointed by and report annually to the General Assembly of The Presbyterian Church in Canada.
Objectives of The Presbyterian Church Building Corporation
The principal objects of the Corporation include providing guarantees for loans for capital projects and housing for retired servants of the church.
Applications for capital projects and housing for retired servants of the church
To access funds for capital projects and housing for retired servants of the church, an application form must be completed. Capital projects applications also require an appraisal of land and buildings, a survey of land, an environmental risk assessment of land and buildings and financial statements of the borrower including a budget for the following year. Housing applications for retired servants of the church also require financial statements and a budget for the following year. The loan application process takes a minimum of not less than three months from receipt of a completed application form to final approval.
Approvals of all applications
Capital projects require approvals from a congregation, a presbytery, the General Assembly Committee on Church Architecture, The Presbyterian Church Building Corporation Executive Committee and a financial institution funding the loan. In addition, local jurisdictional approvals will be required. Final approval of all applications is at the sole discretion of The Presbyterian Church Building Corporation.
Financial requirements for all capital projects
All applications for capital projects must include the following:
- Cash in the bank of a minimum of 35% of the total capital project cost.
- Total debt servicing of a minimum of 1.5 times coverage.
- Security providing a maximum loan to value ratio of 0.75:1.
Loan structure for all capital projects
A congregation signs a demand promissory note and The Presbyterian Church Building Corporation signs a guarantee, both in favour of a financial institution funding the loan. A congregation provides a first mortgage over all land, buildings and the capital project and a certified copy of a comprehensive, all risks, replacement cost insurance policy with the mortgage endorsement clause and loss payable clause all in favour of The Presbyterian Church Building Corporation. A congregation opens an account with a financial institution funding the loan, at a branch of its choice. A credit balance must be maintained in the account at all times with more than sufficient funds to pay the monthly interest, which is automatically charged to the account. The congregation must make a minimum annual repayment of loan principal.
Pastoral care for the life and work of the congregation and the church
The continuing ministry, mission and life and work of a congregation must continue unaffected during the capital project and the renewed and expanded ministry, mission and life and work of a congregation and the church after the completion of the capital project must be accounted for in financial budgets.
Information and contacts
For additional information and application forms please contact The Presbyterian Church Building Corporation at 50 Wynford Drive, Toronto, Ontario, M3C 1J7 or call 1-800-619-7301 or 416-441-1111.