4700-4790

3. Acquisition, Sale, Mortgage, and Transfer of Property

4700. An unincorporated local church within an established district may acquire, purchase, sell, mortgage, transfer, or otherwise dispose of real property in accord with the following authorization and conditions:

(1) A resolution authorizing such action shall be recommended by the local board of administration (782:27), and passed by the local church conference (655:11) by a majority of those present and voting, at any regular or special session duly called for such purpose, provided that notice of the intended action shall be given to the local church members by announcement from the pulpit in two regular services, the first of which shall be not less than one week before the date of the session of the local church conference at which the proposal shall be considered, and that such other notice shall be given as may be required by local laws (633:1).

(2) Space reserved.

(3) The district board of administration, after receiving the recommendation of the district building committee (if any), shall approve the proposal of the local church in writing and such approval shall be affixed to the written instrument involved (1233:30).

(4) The resolution authorizing such action shall direct that any contract, deed, bill of sale, mortgage, or other necessary written instrument be executed by and on behalf of the local church by the proper officers of the local board of trustees, who thereupon shall be duly authorized to carry out the directions of the local church conference and the local board of administration in keeping with the requirements of The Discipline (850–859; 4500–4630; 4720); and any written instrument so executed shall be binding and effective as the action of the local church.

(5) The chair of the local board of trustees, or other designated trustee, shall submit all written instruments of conveyance and title for the acquisition of property to the district superintendent for approval as to their conformity with The Discipline as stated in 1310:11 and shall see that permanent legal and property records are properly stored as set forth in 4760.

(6) When real property is donated to a Wesleyan church for ministries or in a capital or fund-raising campaign, and the donor’s intent is that the property be sold and the proceeds invested accordingly, the local board of administration shall have full power to authorize the reception and disposal of the property, subject to the express written approval of each transaction by the district superintendent.

4720. The proceeds from the sale of any real property of a local church, whether incorporated or unincorporated, other than as provided for in 4700:6, shall be used for the purchase or improvement of property for that local church, unless otherwise authorized by the district board of administration (1233:30). In the event of a situation where two or more local churches have merged, proceeds from the sale of such property shall be used by the merged church unless otherwise authorized by the district board of administration. Whenever a local church does not wish to invest the money received as stated herewith, the money shall be forwarded to the district treasurer, and provided that all debts against such property being sold shall first be paid, it shall be used as ordered by the district conference or the district board of administration for the construction of churches or parsonages within the bounds of the district, for district property, or for purchase of property or construction of buildings involved in the planting of new churches. Such moneys may be used for other expenses involved in the planting of new churches only with the approval of the General Superintendent.

4725. From the sale, acquisition, or transfer of real properties that occur within its fiscal year, a district may choose to invest or contribute up to 15 percent from the net proceeds to expand Wesleyan presence. Up to 10 percent may be used for technology upgrades to meet multimedia, network, and internet needs. In addition, up to 5 percent may be used to assist in the development of a Wesleyan presence in another country through Global Partners or to assist domestic Wesleyan compassionate ministries. The aggregate total of the district’s investment and/or contribution, whether internationally or domestically, cannot exceed 15 percent of the net proceeds of its transactions. The district board of administration must approve each investment and/or contribution with a two- thirds vote. Furthermore, each investment and/or contribution must have the written approval of the General Superintendent.

4728. Any district that chooses to exercise the provision of Discipline 4725 may make a lump sum investment and/or contribution under the conditions mentioned therein or it may make a series of smaller investments and/or contributions, so long as the aggregate total does not exceed 15 percent of the total proceeds from transactions as noted in Discipline 4725.

4. Abandoned Church Property

4730. When the property of a local church is no longer used, a local church may be declared by the district board of administration as discontinued or abandoned (1233:26) and the title shall thereupon vest in the district corporation (4100), or in the district board of trustees in the case of an unincorporated district (4855). The district board of administration shall have the authority to order the sale of said property and to appropriate the proceeds for the purchase of property for a local church, for the construction of churches or parsonages within the bounds of the district, for district property, or for the purchase of property or construction of buildings involved in the planting of new churches. Such moneys may be used for other expenses involved in the planting of new churches only with the approval of the General Superintendent. The actions of the district board of administration shall be reported to the next session of the district conference. Any bequests, devises, gift annuities, or other benefits to a local church that accrue or become available after said church has been discontinued shall become the property of the district corporation (4100), or, in the case of an unincorporated district, shall become the property of the district board of trustees (4855).

4735. From the sale, acquisition, or transfer of real properties that occur within its fiscal year, a district may choose to invest or contribute up to 15 percent from the net proceeds to expand Wesleyan presence. Up to 10 percent may be used for technology upgrades to meet multimedia, network, and internet needs. In addition, up to 5 percent may be used to assist in the development of a Wesleyan presence in another country through Global Partners or to assist domestic Wesleyan compassionate ministries. The aggregate total of the district’s investment and/or contribution, whether internationally or domestically, cannot exceed 15 percent of the net proceeds of its transactions. The district board of administration must approve each investment and/or contribution with a two- thirds vote. Furthermore, each investment and/or contribution must have the written approval of the General Superintendent.

4738. Any district that chooses to exercise the provision of Discipline 4735 may make a lump sum investment and/or contribution under the conditions mentioned therein or it may make a series of smaller investments and/or contributions, so long as the aggregate total does not exceed 15 percent of the total proceeds from transactions as noted in Discipline 4735.

C. Circuit Property

4740. The organization and government for a circuit within an established district are set forth in 525–535. The regulations concerning the acquisition, purchase, sale, encumbrance, transfer, or other disposition of circuit property within an established district shall be the same as for local church property within the district as set forth in 4680 and 4700:1–5. The proceeds from the sale of circuit property shall also be disposed of in the same manner as the proceeds from the sale of local church property as set forth in 4720–4738. The circuit board of trustees shall carry such duties concerning circuit property as are required of a local church board of trustees (850–859) and shall be subject to the general regulations as set forth in 4500–4630.

4750. Whenever the discontinuance of a circuit shall be ordered by the district conference, or whenever a local church is separated from a circuit and established as a separate pastoral charge (1180:22), the district conference shall also order the sale or disposition of circuit property, for which a recommendation shall be received from the district board of administration (1233:10c). Each local church shall be entitled to receive its just share of the property in which it has invested funds; and the amount of such value and just share shall be determined by the district board of administration or a special committee appointed for that purpose.

D. Property Records

4760. All deeds, titles, and other legal or property records of each developing church, church, or circuit within the bounds of the district shall be placed in the custody of the district superintendent (1310:11) who shall be responsible for their preservation and permanent filing as directed by the district board of administration (1233:15). The district superintendent may authorize a local church to retain such records when deemed necessary, in which case a certified or true copy shall be kept in the district files which are in the district superintendent’s custody.

E. Rights to Property

4770. The district board of administration, in the name of the district corporation (4100; 4855), shall have the right to intervene or to institute any legal or equitable actions as may be deemed necessary against a local church or circuit within the bounds of the district to preserve the rights and interests of the district and The Wesleyan Church, in all matters relating to property and the rights to property within the bounds of the district, as set forth in the General Board Policy on Church Discipline (Gen. Bd. Policy on Ch. Disc. 5305–5320), and as otherwise provided for in The Discipline. The General Board, in the name of The Wesleyan Church Corporation, shall also have the right to intervene and protect the rights and interests of The Wesleyan Church as set forth in 4250–4260.

4780. No local church may vote to withdraw as a body from The Wesleyan Church or in any way sever its relation thereto, and no local church conference and/or local board of administration and/or local board of trustees can divert property from The Wesleyan Church (859:4; 4550). If any local church violates or in any way attempts to circumvent these provisions, then all rights, title, and interest in and to all real property of such local church shall thereupon immediately vest in the district corporation (4100) or in the district board of trustees in the case of an unincorporated district (4855); and all such property shall be vacated immediately by the offending party or parties. The district conference or, in the interim, the district board of administration shall have authority to deny the use of any such property to the offending party or parties and to order the immediate eviction of any such party or parties who do not comply therewith.

4790. An existing local church that joins The Wesleyan Church with church facilities and/or other properties deeded in the name of their church will have up to ten years to transfer all properties into the name of The Wesleyan Church. At the time of the transfer, all written instruments of conveyance by which property is held shall contain the trust clause in 4610. If, during this ten-year period of time, the church acquires property or borrows funds needing a loan guarantee from their district, the church will at that time transfer all properties into the name of The Wesleyan Church, and all written instruments of conveyance by which property is held shall contain the trust clause. If the church fails to transfer all properties (containing the trust clause) into The Wesleyan Church within the ten-year period of time, the church’s relationship with The Wesleyan Church would be subject to review.