Co-Signing for a Church Loan

So is Texas.

My church had to take out a loan in the early 70's to help buy our former building. It is next to impossible for a church to get a bank loan without a co-signer. Luckily, the pastor back then was a real estate attorney and the Treasurer was an accountant, so we had two fairly wealthy members who were willing to co-sign. Of course, the loan was only about $30,000, so it's not like they had to mortgage their houses or anything.

The unusual thing is, when that pastor was caught in adultery and excluded from the church, he continued paying on the loan and he even paid off the balance a few years later. He was a good man, but he got caught in a very evil and manipulative sin which cost him his ministry and his family.

Anyway, back to topic, I see nothing wrong with a church taking out a loan if they have the intention and the ability to repay it. If there are not enough members to warrant such a loan or a such a building, then the church is being too reckless in asking members to co-sign, imo.

 

Ditto, Bro. Reed!! Loudly & often!!!!!!

 

We became incorperated several years ago so individual members would not hold any legal responsabilty for things such as loans, or possible law suits. And yes in our state an unincorperated church gives these responsibilities to indivdual members.

 

We became incorperated several years ago so individual members would not hold any legal responsabilty for things such as loans, or possible law suits. And yes in our state an unincorperated church gives these responsibilities to indivdual members. Since we bacame incorperated we no longer need a cosigner.

 

It sounds as if the church in question has more problems than just needing a building. There are no bylaws, membership is on the decline, etc. I would be much more concerned about building a CHURCH than the building for church services.