Church Finance

GoldStar Trust Company specializes as paying agent and trustee for church bonds.  We help monitor the special funding that will assist congregations in fulfilling their vision.

Why Do a Bond Program?

GoldStar Trust Company specializes in monitoring churches who issue bonds for their building programs...a financially winning situation for both the church and its members.

As the church members purchase bonds to finance a building program - or refinance a church loan, or renovate the facilities - the members are allowed the precious opportunity to make a personal investment toward the future ministry of the church.

Many congregations experience a sense of revival as they work together to meet the common goal - building a church home that will reach their community with the love of God.

Also, each member is making a personal financial investment into their future - one that will be returned to them with interest - at low risk and at an attractive interest rate.

Being a church, the rate of default is extremely low...this makes church bonds a secure investment environment for anyone to enjoy.

At the same time, the church is in a winning situation.  Because the money that will be paid to create a church facility won't be lost to some financial institution...instead, most of the money will be reinvested into the congregation and the personal finances of each family.

How Does A Bond Program Work?

First, you need a specialist.  Someone who can help you determine the amount of debt your church can afford and how many bonds you need to sell - at what interest rate and price - to accomplish your financial goals.  This Specialist is called a Broker Dealer.

GoldStar Trust Company will be working closely with you and the Broker Dealer to ensure your specific bond program is figured correctly to meet your specific need and that the entire transaction goes smoothly.

We don't take this responsibility lightly.  At GoldStar Trust Company, we are as professional as we can be.  We go beyond what regulators require.  You want that from a company that is going to serve as your Indenture Trustee, Paying Agent, Registrar, Transfer Agent and Escrow Agent.

The Broker Dealer assists in the presentation of the bond program to the congregation.  From there, the process of finding just the right people, who will invest the right amount of money, over the right amount of time, is underway.

Remember, each person doesn't need to buy the same amount of bonds...if each person invests as they are able, over time, they can help make the new building or financial plan a reality.

A person can buy a church bond and place it in a Self-Directed IRA - with other investment strategies through GoldStar Trust Company - to prepare for retirement.  There are also different ways that a bond can be registered, helping to care for the needs of loved ones through special estate planning.

At the same time, GoldStar Trust Company is helping you and the individual members of your congregation to meet the financial goals they have dreamed about.

Where Does The Money Go?

The money in the bond program will be moved through two different accounts.  The funds invested by the bondholders will be kept in a Bond Proceeds Escrow Account, where GoldStar Trust Company can monitor the funds and disperse them in accordance with the purpose of the bond offering.

At the same time, a second bank account - called a Sinking Fund - will receive the monies paid by the church to return the principal plus interest to the bondholders.  (It is called a "Sinking Fund" because it will be used to pay the bondholders and will "sink" in value until the account is totally empty at the end of the bond program.)

GoldStar Trust Company will closely monitor the movement of all monies that are placed into these accounts - throughout the life of the entire bond program - and ensure the safety for each and every person involved.

A Program Beyond Reproach

Whenever a church becomes involved in financial matters, it is vital that every detail be conducted in such a way that is beyond reproach.

At GoldStar Trust Company, our philosophy is to answer all the questions - avoid all the risks - resolve all the potential legal snarls before they ever have a chance to happen.  For that reason we go beyond what the regulators require - dotting all the "i's" and crossing all the "t's."

We take the extra care to do the job right the first time...because we don't want you, or the bondholders, to be tripped up in any way with unsuspected surprises.

As a state chartered trust company, GoldStar Trust Company's financial condition is closely monitored by the Texas Department of Banking and the FDIC.

A Department of Banking examination is conducted, every year, to assure that all of our activities are in accordance with applicable laws, regulations and sound fiduciary principles.  This is in addition to the ongoing regulation of the Securities and Exchange Commission.

Financial safety and quality service have placed GoldStar Trust Company as a leader among trust companies!

Retirement Program for Minister and Member

Both minister and congregation are eligible to purchase bonds and place them in a Self-Directed IRA account that GoldStar Trust Company will safeguard and monitor for you.

GoldStar Trust Company can handle everything, from Self-Directed Traditional and Roth IRA's to SEP and SIMPLE IRA's - which will hold your church bonds.

Our IRA Department is equipped to allow you to self-direct a retirement trust that you control.  Then, working alongside your broker dealer, GoldStar Trust Company will monitor, record and report to you the details surrounding your exciting investment.

How a Bond Program Closes

GoldStar Trust Company's Compliance Department is charged with the successful closing of bond issues.  They will gently guide you through every step of the Bond Program...keeping you up to date on each piece of information that is required throughout the process.  They will also oversee the transfer of funds between the church and the bondholder.

It is the Compliance Department that will also review to make sure that all the corporate documents, title insurance and other pertinent information are gathered before the Bond Program ever officially begins.

Our goal is for the church to succeed...and for all the members, bondholders and investors to succeed with it.

GoldStar Trust Company is here to assist you!