LCMS Convention Workbook St. Louis, Missouri — 1983, Page 148

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148 ADMINISTRATION AND PROGRAM IMPLEMENTATION

4-07

Report of Lutheran Church
Extension Fund—Missouri Synod
and Board for Church Extension

Keeping in mind that the purpose of Church Extension is a
support for the mission of the church, the Board of Directors of
Lutheran Church Extension Fund. also serving as the Church
Extension Board of the Synod. recognized the ever growing
demands for capital dollars. the regulations of the various
states governing securities, the need for updating policies both
forinvestors and mortgageholders. the fluctuations in interest
rates, new investment opportunities, and above all how Church
Extension could help our congregations not just in this
biennium but for generations vet to come, should the final day
be delayed for a time. This report deals with some of the
decisions made by the directors in the face of countless
challenges and questions and to give information about its
activities Synodwide.

In the complex world of today with its many regulations
relating to securities and mortgages, the directors are grateful
forthe restructuring of Church Extension which was approved
by the Synod in 1979. The blessings through this Synodwide
program are many: making the maximum use of invested
dollars. channeling funds to areas of need, eliminating the
duplication of registration and or filing of offering circulars.

‘In addition the District Church Extension staff is relieved of
certain details such as investor and mortgage accounting.
However. in this restructuring the individual participating
District allocates loan funds in support of the mission within
its respective District. Each District continues to promote
Church Extension investments. Participating Districts elect
members who, together with certain other members. elect the
directors. who are responsible for the development of policy
and the management of the fund. And within the established
policies participating Districts encourage investments and
make decisions where loans are to be made.

~ Asof Dec. 31, 1982. 12 Districts have become participating
Districts in Lutheran Church Extension Fund. These together
with their area vice-presidents are:

English District—Rev. Kenneth Lindsay

Florida-Georgia District—Dr. Fred E. Lietz

Mid-South District—Mr. Al Behnke

Minnesota North District—Mr. Elmer Ginkel

Nebraska District—Mr. Iddo C. Heinicke

New England District—Mr. E. J. McConnell

New Jersey District—Mr. Glenn Sorensen

North Dakota District—Rev. Norman Sincebaugh

North Wisconsin District—Mr. James Barton

Oklahoma District—Mr. Elmer Wilkening

Southern Illinois District—Rev. Elvin Harms

Wyoming District—Mr. Victor Grimm

During the last months conversations have been held with
a number of other Districts about their entry into LCEF. As
Districts become participants. investments and mortgages in
the national office are gradually transfered to the respective
District program. The Districts gain the benefits of all invest-
ments from their constituents. and any surplus funds gen-
erated by activities in their District accrue to the benefit of that
District program.

This report, prepared at the end of January, for the most
part reflects activities for some 18 or 19 months since the last
synodical convention. During this time 103 loans to self:
supporting congregations were approved in 23 Districts for a
total amount of $24,741,613. In addition 80 loans were made in
18 Districts for subsidized ministries in the amount of
$8,730,839, and 19 loans were made to 10 Districts for spe-
cialized ministries in the amount of $1,257,907. The specialized
ministry loans are interest free but carry a 1” annual service
charge. Some $6.8 million are available in this category for
ministries which have no income or a low-income potential.

An offering circular is prepared annually to conform with
the regulations in each of the 50 states. In this circular
Lutheran Church Extension Fund makes disclosures with an
audited financial statement. history of the fund. policies. and

management of the fund. Investors receive a circular prior to
making an investment.

Since late in 1982 Individual Retirement Accounts are
offered. Lutheran Church Extension Fund uses Mercantile
Trust Company N.A.. St. Louis, Mo. as a custodian bank for
these accounts. A Flexible Investment Certificate, which pays
6.2" interest and requires a minimum of $100, may be used by
investors who desire an IRA account. A five-Year Term Note.
which pays 10° with interest compounded semiannually, is
also available. The Five-Year Term Note has been especially
popular. In the first two months of this activity 153 accounts
were opened with a total amount of $288,752.62. Investments in
IRA’s not only provide the investor with an opportunity to
support the church and its ministry while earning a rate of
interest but also give Church Extension some dollars which
likely will remain in the investment portfolio fora considerable
period.

Two memorials to the convention of the Synod are presented
elsewhere. One deals with the matter of including Lutheran
Church Extension Fund as a listed service organization (By-
law 8.09) while the other presents the formula for establishing
the number of members both from the Synod and each
participating District.

In the annual meeting in November 1981, amendments
were made to the articles of incorporation and bylaws. Article
Seventh of the articles of incorporation was amended to read as
follows:

Seventh: The Corporation is a component part of the denomination,
The Lutheran Church— Missouri Synod, and as such is subject to the
Constitution of The Lutheran Church—Missouri Synod. Moreover.
The Lutheran Church-Missouri Synod assembled in convention
may determine to liquidate and dissolve the Corporation. and to
direct that its assets subject to its liabilities, be distributed to other
component parts of The Lutheran Church—Missouri Synod, includ-
ing. but not limited to (1) District of the Synod from which assets
may have originated or to which programs and activities may then
be identified. and (2) as may be otherwise directed by the Synod in
convention. The Corporation shall have Bylaws, which shall be
subject to amendment as specified therein. which shall not be
inconsistent with the provisions of these Articles of Incorporation.
Nothing contained in these Articles of Incorporation or the said
Bylaws shall be inconsistent with the Constitution of The Lutheran
Church—Missouri Synod (to which they shall be subordinate and
which shall prevail in the event of any conflict). or inconsistent with
the laws of the United States of America or of the State of Missouri:
and the Board of Directors of the Corporation, its officers. em-
ployees, agents. and all of its activities shall be subject to the duly
enacted Bylaws of The Lutheran Church—Missouri Synod, and
resolutions duly enacted by the Synod. assembled in convention, to
the same extent as if all of those individuals and activities were
directly those of The Lutheran Church—Missouri Synod.

Article IJ, Section 6 of the bylaws was amended to read as
follows:

The Board of Directors shall annually elect a Chairman of the
Board, Vice-Chairman of the Board. and a Secretary, all of whom
shall be members of the Board of Directors: and a President. such
numbers of Executive Vice Presidentis), other Vice President's) and
assistant officer(s) as shall be determined by the Board of Directors.
and such numbers of Area Vice Presidents as are provided under
Article II], none of whom shall be members of the Board of Directors.
The Treasurer of The Lutheran Church—Missouri Synod shall be
Treasurer of the LCEF. The powers and duties of the respective
officers shall be as follows:

a. The Chairman of the Board of Directors shall preside at all
meetings of the Members and of the Board of Directors.

b. The Vice Chairman of the Board of Directors shall preside at
all meetings of the Members and of the Board of Directors in the
absence of the Chairman.

c. The President, as the chief executive officer, shall have general
management and supervision of all the business of the LCEF. He
shall be entitled to execute all deeds and other documents of the
LCEF as may be authorized by the Board of Directors.

d. Inthe event the Presidentis. forany reason, unable to act. the
Executive Vice President (or the senior Executive Vice President if
there are two or more) shall perform the duties of the President until
anew President is elected by the Board. Executive Vice Presidents),
upon authorization of the Board of Directors. shall be entitled to
execute deeds and other documents of the LCEF. Executive Vice
Presidentis) shall assist the President with his assigned duties.

e. The Area Vice Presidents shall represent the LCEF in their
Districts and for such functions are accountable to the President of
the LCEF.

f. Each Vice President, if any, other than the Executive Vice