Friday, January 17, 2020
Church Building Finance

church finance

For years, Church bonds have been a valuable source of long-term capital available to Churches. Financing a Church project with a bond issue can have huge advantages over conventional bank loans. Bonds offer a competitive interest rate and fixed amortization schedule which provide a long-term solution that Church leaders can plan and budget around. With bonds, there are no rate changes, future re-qualification risks, or balloon payments typically associated with bank loans. Bonds give the congregation the opportunity to earn an attractive rate of return while contributing to the growth and vision of the Church body.

GoldStar works with a number of Broker-Dealers on bond issues throughout the country. At GoldStar, we serve as Trustee, Registrar, and Paying on the bond issues. The funds invested by the bondholders will be deposited into a Bond Proceeds escrow account where our Legal Compliance department can monitor the funds and disburse them in accordance with the purpose of the bond offering. A second bank account called a Sinking Fund will receive the monies paid by the Church to return principal plus interest to the bondholders (it is called a "Sinking Fund" because the account is used to pay bondholders and will "sink" in value until the account is empty at the end of the bond program). GoldStar Trust Company closely monitors and audits the movement of all monies placed into these accounts through the life of the bond issue.

In addition to overseeing the transfer of funds between Church and bondholder, GoldStar Trust Company will make sure all corporate documents, title insurance and other pertinent documentation is gathered before the bond program officially begins and maintained until the day it closes.

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

Contact us today if you are considering a bond program as an alternative to conventional financing or if you are interested in investing in Church bonds. We would be honored to put you in contact with a Broker-Dealer who can assist you.

FDIC NOTICE: IRA and/or Bond investments represented on this website are not FDIC-insured, are not guaranteed by GoldStar Trust Company, and involve risk including possible loss of principal. If held in a GoldStar IRA or GAMMA account, the un-invested cash portion is FDIC insured up to $250,000.