# LCMS Convention Proceedings_St. Louis Missouri_1950_S493
# Machine transcription, uncorrected — CHI Digital Archive (demonstration)

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518 CONSTITUTIONAL MATTERS

b. This Fund shall be increased
1. Through the synodical budget when authorized by the
Fiscal Conference;
2. By special Synod-wide offerings;
3. By gifts, bequests, and devises.
8.115 Loans

a. Loans shall be granted at the discretion of the Board to
incorporated Districts, whether subsidized or unsubsidi
to synodical mission boards, and to the Missionary Board
of the Synodical Conference.

b. The amount of the loan shall be determined by the needs
of the applicant, and such needs shall be viewed in the light
of the most promising and/or strategic missionary fields,

c. Repayment of no less than 10 per cent of the loan per
annum shall be required by the Board. Exceptions to this
rule may be made only by the affirmative vote of two
thirds of the entire Board membership. In event of a de-
fault on a payment no further loan shall be granted until

_ the sum past due has been paid. :

d. An administration fee shall be charged at the rate of one
per cent per annum on the unpaid balance, payable an-
nually on the anniversary of the loan.

e. The borrowing District or Board shall give its notes signed
by its officers as security for loans.

f. Districts having loans shall make available financial re-
ports to the Church Extension Board of Synod annually
or when such reports are requested by this Board. They
shall have these accounts audited by Synod’s auditor or
submit an audit acceptable to him.

Explanation
1) 8.113 “The FUND” is a new section. The present regula-
tions do not define “The Fund,” nor do they designate the
source of increase for “The Fund,” as suggested on page
439 (1947 Proceedings). Present regulations do not state
for what purpose loans can be made. We believe such
a purpose should be as all-inclusive as suggested by
Memorial 527, page 438 (1947 Proceedings), since loans
are to be made to Districts and Boards for mission pur-
poses. Sometimes “acquiring property” for a church can
_be as important these days as building the church.
2) 8.115 “LOANS” ,
a. We add “at the discretion of the Board.” That puts a
check on the all-inclusive purpose under 8.113, Let the

CONSTITUTIONAL MATTERS 519

Board make the decision, and let it be guided by the prin-
ciple laid down in 8.115b (p.439— Loan, Proceedings,
1947).

3) 8.115¢. We do not like to set up exceptions to a rule as
regulations as suggested by Memorial 527 under “Repay-
ments—2” (pp. 439 and 440, Proceedings, 1947). We
would rather put the authority to make necessary excep-
tions into the hands of two thirds of the Board’s mem-
bership.

4) 8.115d. We prefer the present charge of one per cent per
annum to “a one-time administration fee of one per cent.”
It seems to us more equitable.

5) 8.115f. Districts should not grow into completely inde-
pendent corporations. Synod shall know whether its funds
are being wisely invested.

6) No action was taken on Memorial 507 (p. 438, Proceedings,
1947) because our recommendations do not include merg-
ing of the Church Extension Board with the Board for
Missions in North and South America.

CoMMITTEE ON CO-ORDINATION OF SyNnop’s WorK

Oscar Doerr, Secretary
WaLrter VIETH

RicHarp MELZNER

HERBERT BERNER

ArNoLD H. Grom, Chairman

ACTION

As to Recommendation III, Synod adopted the following reso-
lution of Committee 6: .
Resolution 4

CHANGE IN ADMINISTRATION OF CHURCH EXTENSION FuND
(Deletions and Corrections, Section 8.115 a, page 518)

Delete the words “and to the Missionary Board of the Synod-
ical Conference.”

Make Section b to read as follows:

“The amount of the loan shall be determined by the needs of
the applicant and the ability to repay. The needs shall be viewed
in the light of the most promising and/or strategic missionary
fields.” Be it therefore

Resolved, That Memorial 502, Recommendation III, be adopted,
incorporating the aforementioned deletions and changes.

This also disposes of the matter on page 439, lines 11 to 15,
Memorial 404.

Paragraph 6 in Memorial 801 was thus also disposed of.

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