Frequently Asked Questions
A: The Michigan District Church Extension Fund is a ministry which facilitates the partnership between investors and Michigan District congregations in expanding the kingdom. It is a savings fund for investors and a loan fund from which congregations in the Michigan District can borrow for property and/or facilities These funds are also used for the purchase of new mission sites.
Q: How Safe Are Investments in the Church Extension Fund?
A: Church Extension is administered on a sound financial basis, with adequate reserves maintained to assure prompt payment of obligations. CEF loans are generally secured by mortgages on properties in Michigan. The strength of CEF is directly related to the size of its capital, which exceeds that of conventional financial institutions.
Q: Who Can Make an Investment in the Michigan Church Extension Fund?
A: The offer and sale of notes is limited to states where authorized to do so. Refer to our current Offering Circular to determine who can become an investor.
Q: May More Than Two People Open a Joint Account?
A: Yes, as many names as desired may be used in establishing a joint tenancy. The important thing is that the holders understand the meaning of a joint account.
Q: Can a Name Be Added to a Joint Account After It Is Opened?
A: Yes, a name can be added to a joint account. The CEF Office should be notified concerning this matter. The existing note must be surrendered and a new note (with the same interest rate and maturity date) will be issued to reflect the new owner.
Q: On a Joint Account, Which Owner Is Required to Give Their Social Security Number?
A: We ask for the tax Identification numbers of all investors. Michigan CEF will report interest earned to the IRS using the tax identification number of the owner listed first on the account.
Q: Does CEF Report Earnings to the Internal Revenue Service?
A: Yes. The investors will be issued a year-end statement and Form 1099-INT showing the reportable interest.
Q: Must a Person Report Interest in the Case of Term Notes Where the Actual Interest Is Not Paid By Check But Is Compounded and Paid At Maturity?
A: Yes. It must be reported annually and a Form 1099-INT will be mailed to each note holder by January 31st of each year.
Q: Will a Term Note Continue to Earn Interest After Maturity?
A: Yes. Once a term note reaches the maturity date it is renewed at the then prevailing rates unless surrendered for redemption.
Q: Can a Term Note Be Redeemed At Any Time?
A: Yes. Although on term notes submitted for redemption prior to maturity, CEF will charge a penalty for early withdrawal.
