Emeritus Fund of the Free Reformed Churches of Australia (Inc)
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Emeritus Fund - Board Policies

Investment Policies
  1. Priority for the investment of funds surplus to the Fund's immediate or projected needs shall be given as follows:

    1. Loans to member churches.

    2. Loans to kindred Free Reformed organisations for capital expenditure.

    3. Financial Institutions.

  2. Not more than 15% of the accumulated assets of the Fund may be invested with financial institutions who are not bona fide and established banks. Credit unions, building societies, equity funds/trusts are examples of institutions where collectively or individually the total amount of the Fund invested shall not exceed 15% of the net value of the Fund at the time the investment(s) is made.

  3. The Treasurer shall obtain the concurrence of the Chairman for each and every investment proposal with institutions other than established banks and the Chairman shall issue a memorandum for every investment so approved setting out the date, the amount, and details of the institution and the investment.
(Originally adopted 11/5/1995).
(Amended 23/2/1996 "shall" in first sentence of Clause 2 replaced with "may")

Loan Policies

Loans to Free Reformed Organisations
  1. The Treasurer/Investment Officer is authorised to make loans to the member churches and other kindred Free Reformed organisations subject to the following provisions:

    1. The organisation must be Free Reformed based and properly constituted.

    2. The organisation must complete the Emeritus Fund 'Loan Agreement' document for that purpose, 2 copies of which shall be signed by at least two(2) seal holders and to which the common seal of the borrower shall be affixed.

    3. The seal holders shall obtain proper and lawful authority to sign the 'Loan Agreement' and affix the common seal. Such authority shall be obtained by a formal resolution duly recorded in the Minutes of the empowering body of the organisation.

    4. The Treasurer is authorised to withhold the issuing of loan funds to an organisation if he has reason to believe or suspect that the organisation has not provided proper authorisation for the loan.

    5. The Treasurer can at any time before issuing loan funds or during the currency of a loan request to be provided with proof that the requirements of (iii), above, have been met.

    6. The standard interest rate to be charged on loans shall be 70% of the Commonwealth Bank Corporate Overdraft Reference Rate when that rate is at or below 10%, and 3 percentage points below that rate when it exceeds 10%, rounded to the nearest 0.25%.

    7. The maximum period of a loan shall be ten (10) years.

    8. Loan funds shall be allocated on a first-come first-served basis but priority shall be given to the member churches of the Fund.

    9. The Treasurer may negotiate alternative interest rates, provided that priority is given to member churches seeking a loan at the standard interest rate.
(Originally adopted 11/5/1995)
(Amended 2002 Clause (vi). Added the provision for charging 80% of the CBA rate when that rate fell below 10%, and the subsequent deletion of reference to the West Australian where this rate was previously published every Monday. This rate is now made available on the Bank's website.
Amended October 2012 - Clause (vi). Changed interest rate from 80%, changed percentage below rate from 2 to 3 percentage points, and added rounding to nearest 0.25%.
Amended October 2014 Clause (vi): Amended "interest rate" to "standard interest rate". Clause (ix): New addition.)

last updated 25 May 2017
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