2016 Wesleyan Discipline:2. Local Church Property Trust Clause and Release Therefrom

2. Trust Clause and Release Therefrom

4690. All written instruments of conveyance by which property is held or hereafter acquired by any local church, whether incorporated or unincorporated, shall contain the trust clause in 2016 Wesleyan Discipline:4610, and release therefrom shall be as follows:

(1) Whenever the real property of a local church acquired by a conveyance containing the trust clause as set forth in 2016 Wesleyan Discipline:4610 is sold in conformity with the provisions of The Discipline (2016 Wesleyan Discipline:4700–4720), the written approval of the district board of administration (2016 Wesleyan Discipline:4700:3) shall constitute a release and discharge of the real property so sold and conveyed from the trust clause (cf. 2016 Wesleyan Discipline:4620).

(2) Whenever the real property of a local church, acquired by a conveyance containing the trust clause in 2016 Wesleyan Discipline:4610, is mortgaged or encumbered as provided for in The Discipline (2016 Wesleyan Discipline:4700–4720), the written approval of the district board of administration for such mortgage or encumbrance (2016 Wesleyan Discipline:4700:3) shall constitute a formal recognition of the priority of such mortgage lien and the subordination of the trust clause thereto (cf. 2016 Wesleyan Discipline:4630).