102

Incorporation. In all places where the statutes will permit, the trustees shall have the local church incorporated, and the said trustees and their successors shall be the trustees of the said corporation. Where not inconsistent with civil law, the Articles of Incorporation shall set forth the powers of the corporation, and provide that the corporation shall be subject to the government of the Church of the Nazarene, as from time to time authorized and declared in its Manual by the General Assembly of said church. All the property of this corporation shall be managed and controlled by the trustees subject to the approval of the local church.

102.1

Where property is purchased and developed by the District Advisory Board for a local church or where a new church is formed, it is recommended that the District Advisory Board transfer the title to the local church upon the repayment by the local church of the money invested by the District Advisory Board.

102.2

When a local church is incorporated, all property acquired shall be deeded directly to the church in its corporate name when it is possible to do so. (102.6)

102.3

The pastor and the secretary of the church board shall be the president and secretary of the church, incorporated or not incorporated, and shall execute and sign all conveyances of real estate, mortgages, releases of mortgages, contracts, and other legal documents of the church not otherwise provided for in the Manual and subject to the restrictions set forth in 104–104.3.

102.6

In localities where incorporation is not possible, the church name shall include the words “Church of the Nazarene” on all legal documents including, but not limited to the property deed(s) and deed(s) of trust. (102.2)

103

Property. The local church considering the purchase or sale of real estate, the erection of churches or church-related buildings, a major remodeling of either, or leasing real property for any reason, shall submit its proposal to the district superintendent and the District Church Properties Board for their consideration, advice, and approval. No indebtedness, whether involving a mortgage or not, shall be incurred in the purchase of real estate or the erection of buildings or a major remodeling of either, without the written approval of the district superintendent and the District Church Properties Board. The local church shall submit quarterly financial and status reports to this board throughout the construction process. (233–234.5)

103.1

In case agreement cannot be reached between the church board and the district superintendent and the District Church Properties Board, the issue may be submitted to the general superintendent having jurisdiction, for a decision. Either the church or the district superintendent may appeal such decision to the Board of General Superintendents for a final decision. All such appeals, rebuttals of appeals, or arguments pertaining thereto, whether to the general superintendent in jurisdiction or the Board of General Superintendents, shall be in writing. A copy of the appeal, rebuttals of appeals, or arguments pertaining thereto by either the church board or the district superintendent shall be sent to the other party involved. The minute record of a church board appeal shall include the appeal resolution, arguments sustaining it, and the record of the vote taken.

104

Restrictions. The local church may not purchase or lease real estate, nor sell, mortgage, refinance, exchange, or in any other way encumber real property, or otherwise dispose of real estate unless approved by a two-thirds vote of the members present at an annual meeting, or at a special meeting duly called. The church board may approve by two-thirds vote of its members present and voting, the disposition of properties donated for the specific purpose of providing funds for the local church. Both items require the written approval of the district superintendent and the District Church Properties Board. (113.3–113.4, 113.7–113.8, 234.3–234.4)

104.1

The real estate of the local church shall not be mortgaged to meet current expenses.

104.2

A local church which mortgages or sells real estate, or receives insurance claims on real estate, shall use the proceeds only for the purchase or capital improvement of real estate, or to reduce other real estate indebtedness. Only with the approval of the district superintendent and the District Advisory Board shall any proceeds be used for other purposes.