FRESNO, Calif. — A Georgia trust company has taken control of the assets of the Church Loan Fund (CLF) operated by California Baptist Foundation after obligations to investors had not been met since the fall of 2010.
Reliance Trust Company of Atlanta now is responsible for managing the fund, liquidating its assets and making distributions to investors.
As of March 31 about 29 percent, or $24,933,216, of the outstanding principal balance of the loans in the fund’s portfolio were more than 90 days past due and classified as “noncurrent or on nonaccrual status.” Foreclosures total $10,688,631, or 12.5 percent of the fund.
The liquidation of the CLF “does not jeopardize the California Baptist Foundation,” according to Philip W. Kell, president of the California Baptist Foundation. He explained that the $85.8 million CLF is an investment fund that has been operated by the foundation since 1996 and has always been a stand-alone fund.
The money received from investors has been used to make loans to churches and purchase church bonds and other similar types of investments.
The California Baptist Foundation is an agency of the California Southern Baptist Convention. The foundation, founded in 1952, serves as the trust agency for Southern Baptists in the Golden State.
Dollars under management in trusts, endowments and managed funds total more than $101 million and continue to grow, Kell said. (TAB)
Share with others: