Exhibit 10.3
                                                               Execution Version

                               SECURITY AGREEMENT

     As of the 26th day of July,  2007,  in  consideration  of the execution and
delivery  of that  certain  Revolving  Credit  Agreement  dated as of even  date
herewith (as amended, restated,  supplemented or otherwise modified from time to
time, the "Credit  Agreement") by and among AMERICAN CHURCH MORTGAGE COMPANY,  a
Minnesota  corporation  (the  "Borrower"),  the Banks (as  defined in the Credit
Agreement),  and KEYBANK  NATIONAL  ASSOCIATION,  as  administrative  agent (the
"Agent") for the benefit of the Banks,  pursuant to which the Banks have agreed,
severally and not jointly, to make Loans (as defined in the Credit Agreement) to
the  Borrower,  the Borrower  hereby  unconditionally  grants and assigns to the
Agent,  for the Agent and for the  ratable  benefit of the Banks,  a  continuing
security interest and lien (hereinafter  referred to as the "Security Interest")
in, on and to all of the  Borrower's  property  and assets of  whatever  type or
description  (except for the Excluded Mortgage Loan Collateral,  as that term is
defined herein),  and all additions  thereto and replacements  thereof,  and all
other property whether now owned or hereafter created, acquired or reacquired by
the Borrower, wherever located, including, without limitation:

Accounts

     All accounts, deposit accounts, letter of credit rights (whether or not the
letter of credit is evidenced by a writing) and other rights to payment of money
for property  sold or leased or for services  rendered,  related or arising from
the Mortgage Loans, expressly including, without limitation, all agreements with
and sums due from Mortgage  Loan Obligors (as defined in the Credit  Agreement),
and all books and records  recording,  evidencing  or relating to such rights or
any part thereof (collectively, the "Accounts");

Contracts

     All (i) contracts and  agreements for the purchase of interests in real and
personal property,  (ii) management contracts and agreements,  including without
limitation the Management Agreement,  (iii) security agreements,  guarantees and
other agreements  evidencing,  securing or otherwise relating to the Accounts or
other rights to receive payment, and (iv) other agreements to which the Borrower
is a party,  whether  now  existing  or  hereafter  arising  (collectively,  the
"Contracts");

General Intangibles

     All other  general  intangibles  (as such term is  defined  in the  Uniform
Commercial  Code) and contract rights including  personal  property not included
above,  related  to or  arising  from the  Mortgage  Loans,  including,  without
limitation,  (i)  customer  and  supplier  lists,  books and  records,  computer
programs  and  other  intellectual  property  rights,  insurance  policies,  tax
refunds, (ii) all goodwill,  trademarks,  trademark  applications,  trade names,
trade secrets, patents, copyrights, service marks, formulas, industrial designs,
information contained on computer disks or tapes,


<PAGE>

software,  other intellectual property or rights therein,  whether under license
or  otherwise,  all rights to receive  payment on property upon or in connection
with  any   transfer  of  any  license,   and  (iii)  all  payment   intangibles
(collectively, the "Intangibles");

Miscellaneous Items

     All inventory,  equipment fixtures and other goods,  chattel paper (whether
tangible or electronic),  documents,  instruments  (including promissory notes),
supplies,  choses  in  action,  commercial  tort  claims,  (including,   without
limitation,  payments  received  with  respect to  termination,  arbitration  or
litigation under any Contract),  money, cash, cash equivalents,  or other assets
of the Borrower (that come into the possession, custody, or control of the Agent
or any Bank),  deposits,  certificates of deposit,  stock or share certificates,
certificated and  uncertificated  securities and all other investment  property,
supporting obligations (as such term is defined in the Uniform Commercial Code),
URL's, domain names and licenses,  and all other property and assets of whatever
type or  description  not included  above  related to the  acquisition,  sale or
maintenance of the Mortgage Loans (collectively, the "Miscellaneous Items"); and

Proceeds

     All proceeds,  whether tangible or intangible, of any of the above, and all
proceeds of any loss of, damage to or destruction of the above,  whether insured
or not insured,  and all other proceeds of any sale, lease or other  disposition
of any  property  or  interest  therein  referred  to above,  together  with all
proceeds of any  policies of  insurance  covering  any or all of the above,  the
proceeds of any award in condemnation  with respect to any of the property,  any
rebates or  refunds,  whether  for taxes or  otherwise,  and  together  with all
proceeds of any such proceeds (collectively, the "Proceeds").

     The Accounts, Contracts, Intangibles, Miscellaneous Items, and Proceeds, as
described above, are hereinafter collectively referred to as the "Collateral."

     This Security Agreement (this "Agreement") and the Security Interest secure
payment and  performance of all  Obligations  of the Borrower to the Agent,  the
Banks, or any of them,  under this Agreement,  the Credit  Agreement,  and every
other Loan Document and any extensions,  renewals or amendments thereto, however
created, acquired, arising or evidenced, whether direct or indirect, absolute or
contingent,  now or hereafter  existing,  or due or to become due, together with
all other now existing or hereafter arising Obligations, as such term is defined
in the Credit Agreement.

     1. Defined Terms

     (a) Capitalized  terms used herein shall have the meanings ascribed to such
terms in the Credit  Agreement  to the extent not  otherwise  defined or limited
herein.  To the  extent  not  inconsistent  with  this  Agreement,  the rules of
construction and  interpretation set forth in the Credit Agreement shall also be
applicable to this Agreement and are incorporated herein by this reference.

                                      -2-
<PAGE>

     (b)  "Uniform  Commercial  Code"  means the Uniform  Commercial  Code as in
effect in the State of Georgia and, as required to enforce this  Agreement,  any
other  applicable  jurisdiction  in which the  Collateral is located.  "Excluded
Mortgage Loan  Collateral"  means any and all  collateral  securing any Excluded
Mortgage Loans.

     (c) All terms used to define or  describe  types of  Collateral  and rights
therein shall have the meanings set forth in the Uniform  Commercial Code to the
extent not inconsistent with this Agreement.

     (d) The words  "hereof,"  "herein" and "hereunder" and words of like import
when used in this Agreement  shall refer to this Agreement as a whole and not to
any particular provision of this Agreement, and paragraph and section references
shall refer to the  corresponding  paragraphs  and  sections  in this  Agreement
unless otherwise specified.

     (e) No reference  to  "proceeds"  herein  shall be deemed to authorize  any
sale, transfer or other disposition of any Collateral.

     2. Uniform  Commercial  Code  Financing  Statements.  The  Borrower  hereby
irrevocably authorizes the Agent to file such financing statements, continuation
statements,  amendments  and such  other  documents  as the  Agent,  in its sole
judgment,  may deem necessary or desirable to protect or perfect the interest of
the Agent in the Collateral. Borrower also hereby irrevocably appoints the Agent
as the Borrower's  attorney-in-fact,  with a power of attorney to execute on the
Borrower's  behalf such  Uniform  Commercial  Code  financing  statement  forms,
continuation statements,  amendments and other similar instruments as the Agent,
in its sole  judgment,  may from time to time deem  necessary  or  desirable  to
protect or perfect such interests in the  Collateral.  Such power of attorney is
coupled with an interest  and shall be  irrevocable.  In addition,  the Borrower
agrees  to make,  execute,  furnish,  deliver  or  cause to be done,  furnished,
executed and delivered all such further acts, information,  documents and things
as the Agent may reasonably  require for the purpose of perfecting or protecting
the rights of the Agent hereunder or otherwise  giving effect to this Agreement,
all promptly upon request therefor.

     3. Representations and Warranties.  The Borrower represents and warrants to
the Banks and the Agent that (a) the  Borrower  is the owner of the  Collateral,
free from any right or claim of any  Person,  except for the  Security  Interest
created  by this  Agreement  and  Permitted  Liens and (b) the ICA  Account  (as
defined in the Securities  Account  Control  Agreement) is the only such account
maintained by Borrower.

     4. Agent's Perfected First Priority Security Interest. The Borrower further
represents  and  warrants  that,  upon the  filing of  Uniform  Commercial  Code
financing  statements  in the  jurisdiction(s)  set forth on Schedule 1 attached
hereto,  the Security Interest in the Collateral  granted hereunder  constitutes
and shall  constitute  at all times a valid first  priority  security  interest,
perfected  with  respect  to all  Collateral  for  which the  filing of  Uniform
Commercial  Code  financing  statements  is a valid  method of  perfection.  The
Borrower  shall  take or cause to be taken  such  acts and  actions  as shall be
reasonably  necessary or appropriate to assure that the Security Interest in the
Collateral  shall not become  subordinate  or junior to the security  interests,
Liens or claims of any other Person, and that the Collateral shall not otherwise
be or become subject to any lien, except for Permitted Liens.

                                      -3-
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     5. Location of Collateral and Records.  The Borrower further represents and
warrants that all records  concerning  the  Collateral are now kept at the chief
executive  office of the  Borrower or are  maintained  by the  Collateral  Agent
pursuant to the Collateral Agency  Agreement,  which is at the address set forth
on Schedule 2. The Borrower  covenants and agrees that: (a) without providing at
least thirty (30) days prior written notice to the Agent,  the Borrower will not
keep any of such  records  at any  other  address  or  change  its  name,  chief
executive  office,  place  of  business,   mailing  address,  or  organizational
identification  number.  Borrower  shall provide  written notice to the Agent at
least thirty (30) days in advance of any change in the  location  where it keeps
any of the Collateral.  The Borrower  represents and warrants that all names and
addresses  under and at which it has owned the  Collateral for the five (5) year
period prior to the date hereof are listed on Schedule 2 attached hereto.

     6. Perfection.  The Borrower shall at any time, and from time to time, take
such steps as the Agent may  determine in its sole  judgment to be necessary for
the Agent (1) to obtain an acknowledgment, in form and substance satisfactory to
the Agent,  of any bailee having  possession of any of the  Collateral  that the
bailee holds such Collateral for the Agent and that the bailee agrees to comply,
without consent or notice to the Borrower with the Agent's instructions,  (2) to
obtain "control" of any investment property,  deposit accounts, letter of credit
rights or electronic  chattel paper in accordance  with Article 9 of the Uniform
Commercial Code, with any agreements establishing such control to be in form and
substance reasonably  satisfactory to the Agent, and (3) otherwise to insure the
continued perfection and priority of the Agent's Security Interest in any of the
Collateral and of the preservation of its rights therein.  In furtherance of the
foregoing,  the  Borrower  shall  promptly  notify  the Agent in  writing if the
Borrower  acquires any property or interest which  constitutes  Collateral or if
any Collateral is at any time in the possession of a bailee,  and shall endorse,
assign and deliver to the Agent or cause the Agent to be the  registered  holder
of, any securities,  financial assets or other investment  property now owned or
hereafter acquired by the Borrower.

     (a) Other Acts as to Any and All Collateral.  The Borrower agrees to comply
with the covenants and agreements set forth in the Credit  Agreement,  including
such covenants as pertain to the Collateral.  In addition,  the Borrower agrees,
at the  request and option of the Agent,  to take any and all other  actions the
Agent may  determine  in its sole  judgment  to be  necessary  or useful for the
attachment,  perfection  and first  priority of, and the ability of the Agent to
enforce,  the  Agent's  Security  Interest  in any  and  all  of the  Collateral
including,  without  limitation,  (i) causing  the  Agent's  name to be noted as
secured party on any  certificate of title for a titled good if such notation is
a condition to attachment, perfection or priority of, or ability of the Agent to
enforce,  the Agent's Security Interest in such Collateral,  (ii) complying with
any  provision of any statute,  regulation  or treaty of the United States as to
any  Collateral if compliance  with such provision is a condition to attachment,
perfection  or  priority  of, or ability of the Agent to  enforce,  the  Agent's
Security  Interest in such  Collateral,  and (iii) obtaining  governmental  and,
subject to the  provisions of the Credit  Agreement,  other third party waivers,
consents  and  approvals  in  form  and  substance  satisfactory  to the  Agent,
including,  without  limitation,  any consent of any  licensor,  lessor or other
Person obligated on Collateral.

     (b) Savings Clause.  Nothing contained in this Section 6 shall be construed
to narrow the scope of the Agent's or a Bank's  security  interest in any of the
Collateral or the

                                      -4-

<PAGE>

perfection  or  priority  thereof  or to  impair or  otherwise  limit any of the
rights, powers, privileges or remedies of the Agent or any other Bank hereunder.

     7. Risk of Loss.  Any and all  injury  to, or loss or  destruction  of, the
Collateral  shall be at the  Borrower'  risk and shall not release the  Borrower
from its Obligations.


     8. Event of Default.  Upon the occurrence and during the continuation of an
Event of Default,  the Agent shall have, without any other notice or demand upon
the  Borrower,  (a) such  rights  and  remedies  as are set forth in the  Credit
Agreement  and herein,  (b) all the rights,  powers and  privileges of a secured
party under the Uniform  Commercial  Code and (c) all other  rights and remedies
available to the Agent at law or in equity.  The Borrower  covenants  and agrees
that any notification of intended disposition of any Collateral,  if such notice
is required by law,  shall be deemed  reasonably  and properly given if given in
the manner provided for in the Credit  Agreement at least ten (10) calendar days
(unless the  Collateral is perishable or threatens to decline  speedily in value
or is of a type  sold on a  recognized  market)  prior to such  disposition  and
specifically   such  notice  shall   constitute  a  reasonable   "authentication
notification of disposition"  within the meaning of Section 9-611 of the Uniform
Commercial  Code. Upon the occurrence and during the continuation of an Event of
Default, the Agent shall have the right to the appointment of a receiver for the
properties and assets of the Borrower,  and the Borrower hereby consents to such
appointment and hereby waives any objection it may have thereto and the right to
have a bond or other  security  posted  by the  Agent  or any  other  Person  in
connection  therewith.  The Borrower agrees,  upon the occurrence and during the
continuation  of an Event  of  Default,  promptly  to take  any  actions  at the
Borrower's  sole cost and expense  that the Agent may request in order to enable
the Agent to obtain and enjoy the full rights and benefits  granted to the Agent
under this  Agreement  and the other Loan  Documents.  The Agent  shall have the
right,  in connection  with the issuance of any order for relief in a bankruptcy
proceeding,  to petition  the  bankruptcy  court for the  transfer of control or
assignment of the  Collateral  to a receiver,  trustee,  transferee,  or similar
official or to any purchaser of the Collateral pursuant to any public or private
sale,  foreclosure or other exercise of remedies  available to the Agent, all as
permitted  by  applicable  law. All amounts  realized or  collected  through the
exercise  of  remedies  hereunder  shall be  applied as  provided  in the Credit
Agreement.  Without limiting the generality of the definition of the term "Event
of Default"  contained in the Credit  Agreement,  any failure by the Borrower to
observe or perform its  obligations  under this  Agreement  shall  constitute an
Event of Default under the Credit Agreement.

     9. Attorney in Fact. The Borrower hereby further irrevocably designates and
appoints the Agent as its  attorney-in-fact,  with power of  substitution,  with
authority, upon and after the occurrence of an Event of Default, to: (a) collect
all Accounts,  endorse its name on any note,  acceptance,  check,  draft,  money
order or other evidence of debt or of payment which constitutes a portion of the
Collateral  and which may come into the  possession of the Agent;  (b) take such
action,  execute such  documents,  and perform such work,  as the Agent may deem
appropriate  in exercise of the rights and remedies  granted the Agent herein or
in any other  Loan  Document;  (c)  compromise  and  settle  or sell,  assign or
transfer or ask,  collect,  receive or issue any and all claims possessed by the
Borrower which  constitute a portion of the  Collateral,  all in the name of the
Borrower;  and (d)  generally  do such other  things and acts in the name of the
Borrower  with respect to the  Collateral  as are  necessary or  appropriate  to
protect or enforce  the  rights of the Agent  hereunder  or under any other Loan
Document. The powers of attorney

                                      -5-

<PAGE>

granted  herein are coupled  with an interest and shall be  irrevocable.  To the
extent   permitted  by  law,  the  Borrower   hereby   ratifies  all  that  said
attorney-in-fact shall lawfully do or cause to be done in good faith. The powers
conferred  on the Agent  hereunder  are solely to protect its  interests  in the
Collateral  and shall not impose any duty upon it to exercise  any such  powers.
The Agent shall be accountable only for the amounts that it actually receives as
a result of the exercise of such powers, and neither it nor any of its officers,
directors,  employees or agents shall be responsible to the Borrower for any act
or  failure to act,  except  for the  Agent's  own gross  negligence  or willful
misconduct,  as  determined by a final,  non-appealable  order of a court having
jurisdiction  over the subject matter.  To the extent that the Agent shall incur
any costs or pay any expenses in connection with its rights hereunder, including
any costs or expenses of litigation associated  therewith,  such costs, expenses
or payments shall be included in the  Obligations  secured hereby and shall bear
interest  from the  payment of such costs or  expenses  at the rate set forth in
Section 4.12 of the Credit Agreement.

     10. Remedies Cumulative.  The Borrower agrees that the rights of the Agent,
the Banks, or any of them, under this Agreement, the Credit Agreement, any other
Loan  Document or any other  contract or agreement now or hereafter in existence
between the Agent and the Borrower, shall be cumulative,  and that the Agent may
from time to time  exercise  such  rights and such  remedies  as such  Person or
Persons  may have  thereunder  and  under the laws of the  United  States or any
state,  as applicable,  in the manner and at the time that the Person or Persons
in its or their sole discretion desire, subject to the terms of such agreements.
The Borrower further  expressly agrees that the Agent shall in no event be under
any  obligation to resort to any  Collateral  secured hereby prior to exercising
any other rights that the Agent, the Banks, or any of them, may have against the
Borrower or its property, nor shall the Agent be required to resort to any other
collateral or security for the Obligations, prior to any exercise of the Agent's
rights against the Borrower and its property hereunder.

     11. Agent's Right to Immediate  Possession  and  Disposition of Collateral.
THE BORROWER HEREBY ACKNOWLEDGES THAT THE OBLIGATIONS AROSE OUT OF A "COMMERCIAL
TRANSACTION"  AS THIS TERM IS DEFINED  IN  OFFICIAL  CODE OF  GEORGIA  ANNOTATED
ss.44-14-260(1)  CONCERNING  FORECLOSURE OF MORTGAGES ON PERSONALTY,  AND AGREES
THAT UPON THE  OCCURRENCE AND DURING THE  CONTINUATION  OF ANY EVENT OF DEFAULT,
THE AGENT SHALL HAVE THE RIGHT TO AN IMMEDIATE WRIT OF POSSESSION WITHOUT NOTICE
OF HEARING AND KNOWINGLY AND INTELLIGENTLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE
TO ANY NOTICE AND  POSTING OF A BOND BY THE AGENT PRIOR TO SEIZURE BY THE AGENT,
ITS  TRANSFEREES,  ASSIGNS OR SUCCESSORS IN INTEREST,  OF THE  COLLATERAL OR ANY
PORTION THEREOF.  THIS IS INTENDED BY THE BORROWER AS A "WAIVER" AS THIS TERM IS
DEFINED  IN  OFFICIAL  CODE OF GEORGIA  ANNOTATED  ss.44-14-260(3)  RELATING  TO
FORECLOSURE  OF MORTGAGES ON  PERSONALTY.  The Agent's sole duty with respect to
the custody,  safe-keeping  and physical  preservation  of the Collateral in its
possession,  shall be to deal with such  Collateral  in  substantially  the same
manner as the Agent deals with similar  property for its own account.  The Agent
may in its  discretion  require the  Borrower to assemble all or any part of the
Collateral  at such  location or  locations  within the  jurisdiction(s)  of the
Borrower's chief executive office(s) or at such other locations as the Agent may
designate. In addition, the

                                      -6-

<PAGE>

Borrower  waives  any and all rights  that it may have to a judicial  hearing in
advance of the enforcement of any of the Agent's rights and remedies hereunder.

     12. Marshalling.  The Agent shall not be required to marshal any present or
future collateral security (including but not limited to the Collateral) for, or
other  assurances of payment of, the  Obligations or any of them or to resort to
such collateral security or other assurances of payment in any particular order,
and the  Borrower  hereby  irrevocably  waives the  benefits of all such laws in
connection with the enforcement of this Agreement and the other Loan Documents.

     13. No Release or Waiver. No transfer or renewal, extension,  assignment or
termination  of this  Agreement or of the Credit  Agreement or of any other Loan
Document,  or additional Loans made by the Banks to the Borrower,  or the taking
of further  security,  nor the retaking or  re-delivery of the Collateral by the
Agent, or any other act of the Agent,  shall release the Borrower from, or waive
any  Obligation,  except a release or waiver executed in writing by the Agent in
accordance  with the Credit  Agreement  with respect to such  Obligation or upon
full  payment  and  satisfaction  of  all  Obligations  and  termination  of all
Commitments.

     14.  Assignment.  The Borrower  agrees that this  Agreement  and the rights
hereunder may, in the  discretion of the Agent,  be assigned in whole or in part
in connection  with any  assignment of the Credit  Agreement or the  Obligations
evidenced  thereby.  In the event this Agreement or the rights  hereunder are so
assigned  by any of the Banks or the  Agent,  the  terms  "Banks,"  or  "Agent,"
wherever used herein,  shall be deemed,  as applicable,  to refer to and include
any such assignee.  Except as expressly  provided in the Credit  Agreement,  the
Borrower shall not assign its rights in this Agreement.

     15.  Successors.  This  Agreement  shall  apply to and bind the  respective
successors and permitted assigns of the Borrower and inure to the benefit of the
Agent and the Banks and the  successors  and permitted  assigns of the Agent and
the Banks.

     16.  Notices.  All notices and other  communications  required or permitted
hereunder shall be in writing and shall be given in a fashion  prescribed in the
Credit Agreement.

     17. Governing Law; Entire  Agrement.  THIS AGREEMENT SHALL BE CONSTRUED AND
INTERPRETED IN ACCORDANCE  WITH THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS)
OF THE STATE OF GEORGIA. This Agreement,  together with the Credit Agreement and
all other Loan Documents and all documents and agreements referred to herein and
therein,  constitute the entire agreement among the Borrower,  the Banks and the
Agent  with  respect to the  matters  addressed  herein and may not be  modified
except by a writing executed by the Agent and delivered to the Borrower.

     18. Severability.  If any paragraph or part thereof of this Agreement shall
for any reason be held or adjudged to be invalid,  illegal or  unenforceable  by
any  court  of  competent  jurisdiction,  such  paragraph  or  part  thereof  so
adjudicated invalid, illegal or unenforceable shall be deemed separate, distinct
and independent,  and the remainder of this Agreement shall remain in full force
and effect and shall not be affected by such holding or adjudication.

                                      -7-
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     19.  Counterparts.  This  Agreement  may  be  executed  in  any  number  of
counterparts,  each of which  shall be  deemed to be an  original,  but all such
separate counterparts shall together constitute but one and the same instrument.

     20. Agent. Each reference herein to any right granted to, benefit conferred
upon or power  exercisable  by the "Agent" shall be a reference to the Agent for
the Banks, and each action taken or right exercised hereunder shall be deemed to
have been so taken or exercised by the Agent for the benefit of and on behalf of
the Banks.

     21. Term of Agreement. This Agreement shall remain in full force and effect
until all Obligations have been paid in full.

     22. Time of the  Essence.  Time is of the essence  with respect to each and
every covenant, agreement and obligation of the Borrower under this Agreement.

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     IN WITNESS  WHEREOF,  the undersigned  parties  hereunto have executed this
Agreement  under seal by and through their duly authorized  officers,  as of the
day and year first above written.


                                              BORROWER:

                                              AMERICAN CHURCH MORTGAGE
                                              COMPANY, a Minnesota corporation


                                               By: /s/ Philip J. Myers
                                                    Philip J. Myers
                                                    President






                   [EXECUTION CONTINUED ON THE FOLLOWING PAGE]

<PAGE>



                              [EXECUTION CONTINUED]

                                AGENT:

                                KEYBANK NATIONAL ASSOCIATION,
                                a national banking association, in its capacity
                                as Agent



                                        By: /s/ Tayven R. Hike
                                                Tayven R. Hike
                                                Vice President


                                                  [BANK SEAL]