SIBLEY REVOLVING LOAN FUND
EPISCOPAL DIOCESE OF ROCHESTER POLICIES

The Policy dates from the Gift of Rufus Adams Sibley, in an original amount of $50,000 It was given on September 5, 1924. It was given to be used and administered by the Trustees of the Diocese as a revolving fund for the purpose of church Extension Work within the Diocese.

REQUIREMENTS:

Purpose: The Sibley Revolving Loan Fund is available to extend the mission of churches within the Diocese. It may be used for working capital or capital expenditures for the improvement of existing buildings or the building of new facilities. It may be used for the acquisition of property and for the planting of new congregations.

Administration: The Fund is to be administered by the Trustees. The Trustee Committee on Social Responsible Investing shall be the committee entrusted with the responsibility of determining rules and regulations regarding fund awards and will be responsible for recommending loans to the Trustees for approval. Trustee approval may be obtained by proxy or at meetings. Loans when approved will be reported to the Audit and Finance Committee at the meeting of the Trustees following the approval of the loan. The Audit and Finance Committee of the Trustees will regularly review the status of loans and any actions that might be required should a default occur. Annually, the Audit and Finance Committee will report the loan fund activity to the Trustees. The Office of the Bishop shall act, on behalf of the Trustees, in signing all documents and transacting any business approved by the Trustee Committees.

APPROVAL OF TRUSTEES - Approval of a loan requires a 2/3 vote of the Trustees to grant a loan.

RATE OF INTEREST - The interest rate will not more than 5%. Interest can be accrued and added to the loan, but the loans are to self-amortizing.
Collateral Required: Adequate security for each loan must be provided. For all loans, a note securing the debt will be provided. Security, as appropriate will be obtained for working capital loans.

ADDITIONAL REQUIREMENTS - Not more than 10% of value can be loaned to any one enterprise, or mission, except by unanimous consent of Trustees.
Length of Term: The donor did not restrict the length of loans. Normally, Ten Year loans will be given. Loans may be longer if the capital improvement has a longer than ten-year life or if the start-up of the new mission activity is proven to be longer than ten years. Loans may be approved by written proxy, if timing is sensitive.

PROCESSING OF LOAN - The church will make an application for funds to the Office of the Bishop. The Bishop or his/her designee will work with the congregation is structuring the loan and its repayment and present the proposed loan to the SRI Committee. The SRI Committee will recommend the loan to the Trustees for approval. If required, a loan shall not be funded until and unless the obligation has been approved by the Standing Committee of the Diocese and to any other organizations as a result of the canons of the church or its legal status.

DEFAULT - On the occurrence of any event of default (as defined below), the full then unpaid principal amount of the loan, plus any accrued interest, shall become due and payable in full.

Any of the following shall be an event of default:

a. Failure by the borrower to pay any installment of interest or principal on the loan or on the first mortgage continuing for more than thirty (30) days after its due date and more than thirty (30) days after written notice of intent to invoke such failure as an event of default shall have been mailed to the borrower.

b. Filing by the borrower for bankruptcy under any Federal or State bankruptcy law.

c. Failure by the borrower, after receipt of the initial proceeds of the loan, to close within a period of four months thereafter, unless an extension is approved by the Trustees.

d. Failure by the borrower to pay any real estate taxes and or fees, or governmental fees due on the premises when and as due.

e. Failure by the borrower to provide to the Diocese evidence of current insurance on the property equal in value to an amount not less than the aggregate value of all liens against the property, payable to the Diocese and other prior lienors as their interest shall appear.

f. Sale or further encumbrance of the premises by the borrower without the permission of the Diocese.

g. Failure by the borrower to keep the property in compliance with codes or to maintain the appraised value of the property.

h. Failure by the borrower to keep financial and fiduciary policies of the Diocese

current.Contact: Canon Karen Noble Hanson
knhanson@rochesterepiscopaldiocese.com

Amended; February 5, 2002