Withdrawal prior to the maturity date carries a penalty. Interest is determined periodically by the Fund's board of directors, taking into consideration the average rate of interest return from the Fund's first mortgage loans and current interest rates paid on similar types of investments. Interest is payable on June 30 and December 31 of each year. Checks are mailed shortly thereafter at the option of the investor, or the interest may be reinvested and compounded. The investor completes the endorsement for withdrawal on the back of the note, signs the note, has the signature guaranteed by a local bank or trust company, and returns the note to the Fund.
Ownership passes automatically to the surviving spouse.
Yes, a Custodian Account can be established under the Uniform Gift to Minors Act. For additional information on such accounts please call us. Investment funds are lent to local United Methodist Churches and secured by first mortgages on property purchased or buildings constructed with the loan funds. Strict guidelines are observed to make sure that congregations can sustain such loan payments. Interest income, of course, is paid directly to investors unless a different arrangement is requested.