1 Comment

  1. John Griffin
    November 14, 2014 @ 5:26 pm

    In basic terms, banks are custodians of depositor’s funds. Deposits up to certain amounts are guaranteed by law and banks must comply or face an enforceable undertaking to comply with the law.

    Banks have for many years loaned funds to churches on a lower interest rate because church property has been offered a surety, that is, the bank’s risk is lowered because the church has offered its assets as a guarantee. If this is not the case then the church is dishonest for accepting a loan against assets they are not prepared to liquidate.

    When banks loan funds to the church under these circumstances then the church has an obligation to meet loan conditions.

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