Designed for UCC churches and organizations making environmentally friendly improvements—from new landscaping or appliances to replacing an entire climate control system—the Cornerstone Fund’s EcoLoan can get the savings started. And those energy savings could even pay for the loan! Choose from any of the Cornerstone Fund’s loan options, which you’ll find on the Current Rates page.
Before applying for an EcoLoan, please review the following details:
SECURITY FOR THE ECOLOAN
All Cornerstone Fund loans, including the EcoLoan, are secured by a first mortgage on all church property or Cornerstone Fund deposits amounting to 110% of the maximum loan amount. If the church currently has a first mortgage with the Cornerstone Fund, an EcoLoan will be considered a second mortgage.
Prior to closing, a policy covering the church property must be forwarded to the Cornerstone Fund listing the United Church of Christ Cornerstone Fund, Inc. (UCCCF) as mortgagee in the loss payee clause. The real estate shall be insured against loss or damage on an “All Risk” basis, including:
- Coverage against loss or damage by fire, extended coverage, lightning, hail, windstorm, explosion, riot, hazards, casualties and other contingencies as determined by UCCCF
- Comprehensive general liability insurance covering occurrences which may arise from the real estate, including claims for bodily injury, death and/or property damage arising out of the construction, use, operation, repair, maintenance and or management of the real estate
- An insurance policy providing coverage for sexual or physical abuse or molestation and vicarious liability
All insurance must be carried in amounts and with deductibles determined by the Cornerstone Fund. We recommend that property insurance coverage total the undepreciated replacement value of the improvements (ie, what it would cost to rebuild, using the current cost of construction in your area).
CONDITIONS UPON WHICH A LOAN WILL BE APPROVED
- The local church applying for a loan shall be a regularly organized evangelical church, in fellowship with and holding membership in one or more of the following: a Synod, Conference, or Association, or their successors, of the United Church of Christ, or its successor.
- The local church shall be duly organized as a not-for-profit corporation or association authorized by law to mortgage its property to secure the amount appropriated by UCCCF.
- Loan requests can only be made upon proper application, in a form as prescribed by UCCCF with information required fully given. Printed documents, including mortgages, will be furnished to the borrower and returned to the UCCCF office in Cleveland.
- The property shall be insured and kept insured by an acceptable insurance carrier against loss and/or damage by fire, windstorm, tornado, hurricane, earthquake and cyclone, and the following clause inserted in the insurance policy:
Loss, if any, payable to the United Church of Christ Cornerstone Fund, Inc., 700 Prospect Avenue, Cleveland OH 44115, as its interest may appear, and the policy sent to the Cleveland office.
While the minimum acceptable property insurance coverage is 80% of the undepreciated replacement value of the improvements (ie, what it would cost to rebuild or the loan amount, using the current cost of construction in your area) or the loan amount, whichever is less, we recommend that you cover the property for the undepreciated replacement value.
- Security for the amount loaned by UCCCF will be a recorded mortgage upon all real property owned by the church, in a form as prescribed by UCCCF, which must be a first lien or incumbrance (unless the UCCCF is currenUy in first position), duly executed and recorded and forwarded to UCCCF
- Should the church cease to be an evangelical church in fellowship with and holding membership in a Synod, Conference or Association as provided in condition 1 above, become extinct, abandon public worship, or transfer, assign or convey a beneficial interest in the property or encumber same without prior written consent from UCCCF, or in case of failure to perform any other condition of the mortgage, UCCCF shall be entitled to enforce the terms of the mortgage, including immediate repayment of the outstanding principal balance plus accrued interest
TIMING OF LOAN APPROVAL
Depending on the amount of the loan request, approval generally requires an underwriting period of one to two weeks from receipt of the complete loan application package.