However, as a matter of policy and practice, the Church Extension Fund may redeem, at its discretion, such notes, regardless of maturity, at the request of the investor, upon the showing of necessity or emergency. An interest penalty is assessed when an early redemption is requested by the investor. An investment record of additions, subtractions and interest earnings is mailed to the investor semiannually. They are automatically renewable at the option of the Church Extension Fund for a like term at the interest rate then in effect for Fixed Rate Notes of the same term, if not presented for payment by the holder prior to their due date. The Church Extension Fund apprises investors of impending maturity in writing at least 30 days prior to the due date.
Interest is paid quarterly.
The investor has the option of receiving interest by check on a quarterly, semiannual or annual basis or leaving it on deposit to be compounded. Method of receiving interest payments is elected at the time of investment and may be changed on the annual anniversary of that date. The rates of interest for all Fixed Rate Notes will be set by the Church Extension Fund. The rate of interest on new Fixed Rate Notes to be offered is is subject to change at any time. The stamps may be purchased on account and paid for as they are sold.