B. Local Church Property

B. Church Property

1. Ownership

4680. Local property within an established district may be held by the local church or by the district, as decided upon by the district conference (1180:19–20). In those districts where the local churches are to hold their own property, all grants, conveyances, devises, gifts, transfers, and assignments now owned or hereafter acquired of any property, real, personal, or mixed, to or for any unincorporated local church or any organization, board, or similar body connected thereto, shall be held by and/or conveyed to its duly elected board of trustees, and to their successors in office and their assigns, as the board of trustees of such local church, in trust for the benefit and use of the members and ministers of The Wesleyan Church, subject to its Discipline, regulations, and appointments as from time to time legislated and declared, and shall contain the appropriate trust clause as set forth in 4610 (4590; 4620). An omission of the name of any or all of the trustees shall not render any instrument invalid. (The regulations for an incorporated local church are set forth in 4000–4070.) In those districts where the district is to hold local property (323:8), such local property shall be held as set forth in 4140 or 4830.

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 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 4610 is sold in conformity with the provisions of The Discipline (4700–4728), the written approval of the district board of administration (4700:3) shall constitute a release and discharge of the real property so sold and conveyed from the trust clause (4620).

(2) Whenever the real property of a local church acquired by a conveyance containing the trust clause in 4610 is mortgaged or encumbered, as provided for in The Discipline (4700–4728), the written approval of the district board of administration for such mortgage or encumbrance (4700:3) shall constitute a formal recognition of the priority of such mortgage lien and the subordination of the trust clause thereto (4630).

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.