LCMS Convention Workbook St. Louis, Missouri — 1981, Page 29

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MISSIONS 29

STATEMENTS OF CHANGES IN FUND BALANCES

Nine Month Year
Ended Ended
sune 30, 1979 June 20, 19860
GENERAL LOAN FUND
Fund balance at Ddeginning of
the period 3 $13,235,306
Transfer from The Lutheran Church -
Missouri Synod isan funds--Note A 12,538,568
Excess of revenue over expenditures 56,538 1,400,007

FUND BALANCE AT

SPECIAL MINISTRIES FUND

Fund Dalance at beginning of

the period Ry} § 5,380,823
Transfer from The Lu roh -
Missouri Synod loan funds--Note A 6,880,328
ND BALANCE AT E S$ 6,280,328 $ 6,880,325
ADVANCE 3i
d balance at deginning of
re period $ $ 3,359,794
Transfer from e Lutheran Church -
ssouri Synod loan funds--Note 4 7,359,148

Proceeds from sale of advance
less cost
charges o

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See notes to financial statemer

NOTES TO FINANCIAL STATEMENTS

June 30, 1980 and 13979

NOTE A--ORGANTZATION

The Lutheran Church Extension Fund - Missouri Synod ("LCEF") was organized
in 1978 as part of an overall plan to restructure all of the church
extension activities of The Lutheran Church - Missouri Synod ‘"Synod").
The plan for restructuring Synod's church extension activities called for
the LCEF to continue the activities of, and to succeed to the assets and
liabilities of all the Synod's loan funds, the internal fund grouping of
Synod previously used to account for all aspects of church extension work.

Accordingly, as of September 30, 1978, the LCEF nade an excnange offer i
47 of the states in which the Synod had existing investors in chur
extension notes. Investors were given the option to tender their church
extension notes in exchange for similar obligations of the LCEF, or to
retain their existing church extension notes. Investors in Church
Extension 3onds were act offered an exchange.

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On October 1, 19°78, Svned transferred all of the assets of its loan fur
ta the LCEF. Synod's loan funds included the Church Extension Fund

the General Loan Fua the Service Charge Loan Fund ‘now
$2 Ministries F and the Advance Site The
re these assets subj to the exist: liabilities of Synod’s
loan funds pursuant to a Transfer Agreenent. feer September 329, 1978,
the LCEF is responsibie for tne administration all asserts transferred
from Synod Further, it is le for all pri pal and interest payments

motes as well as on all notes payable te non-tenderiag investors
and on all dDonds payable wh were not part of tne exchange offer.
Synod, however, remains liabie to aon-tendering ncteholders and t2 dond-
nolders for making any principal and interest payments on their notes and
bonds in the event chat the LCEF does not make such payments. Sudseguent
to September 3C, 1978, the Svnod's loan funds no longer issued investment
obligations or made loans.

NOTE “SIGNIFICANT ACCOUNTING POLICIES

The financial

Invesine an

ana expense de

d - Notes receivable ¢
ations of The Lutheran
wrectiy through a District o

'

rates to 7%) are generail
twenty vear amortization schedule and

£ ancing the dalance at the end of the five year period.
Loans to congr rons (interes: rates fr .5% to 95) are generally nade
for a period 9 fteen years with a twa year amortization schedule and
the option of refinancing the dalance at the end of tne fifteen year
period. Mortgages on related real estate collateralize the loans to
congregations.

e@ vears witha

Special Ministries Fund - Notes receivable of the Special Ministries
are from loans made to Districts for ministries having a low or no i
potential. Terms of tnese notes provide for periodic payments
twenty vear period with an annua i rge of 1% for the fi
vears with increases thereafrer charge fee is
the General Loan Fund to caver administrative expenses.

o

extension loans in amounts 9

HERAN CHURCH - MISSOURI SYNOD

On January 1, 1980, p

2 am amendmenc to the Transfer Agreement
ed Support Dollars (see Not
y cn Extension Reser

see Note A!

and interest

agreed scnecule.

AND BONTS

orincipal.s
23 compound

a

2 semi-annual

NOTE E--NOTES AND BONDS PAYABL

~cONT'D

Bonds payable and Church Growch Notes are issued ac a discounted amount

and appreciate to face value over a ten to fifteen year period. Tne
annual interest rates of Church Growth 3onds and notes if held to maturity
range from 4.5% to 7.48%, The annual interest rate of Century & 25 Bonds

if held to maturity is 5.63

Included in the notes payable referred to above are the non-tendered actes
that were assigned to the LC under the Transfer Agreement referred to i
Noce A. Non-tendered notes at June 30, 1979 and June 30, 1980 amounted ¢
$2,167,296 and $518,279, respectively. Church Growth Bonds and Century &
25 Bonds wnich were not included in the exchange offering nave also Seen
assigned to the LCEF.

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NOTE SUPPORT DOLLARS PAYABLE

Support doilars are an arrangement for Synodicai Corporations (principally
Districts and schoois) t> deposit funds wi the UCEF on a demand or ter
Dasis. The demand deposits, amounting t2 $5,927,489 and $6,795,385 a:
June 30, 1979 and June 30, i980, respectively, earn interes: ac rates
tp money aarket rates of a major St. Louis dank, adjusted quarterly.
interest rates on term deposits range from

TH1/Sh to Faden.

NOTE G--REPURCHASE AGREEMENT

in July 1979, tne LCEF sold e Aid Association far Lutherans ‘aAl?,
non-affiliated fraternal life insurance company, approximately
miilion loans receivable from member congregations of Synod. The
collects monthly principal and interest payments and rem
aaAL.

s them to

In additien, the LCEF agreed to repurcsnase anv loan th
defauic for more than thirty days or sudscitute a ioan of
The LCEF S agreed to repurcnase on J: , 1984, che unpaid
Dalances of the notes then held by the sal. At June 30,
outstanding orincipal daiance on the loans soid to the A

$2,796,737 Interest collected om tnese notes and
amounted to $225,941. for the vear ended June 32, i985.

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