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Association
The Association handles loans and investments via the Revolving
Fund, also known as SURF (Southern Union Revolving Fund). Participation
in Revolving Fund is open to all Southern Union constituents,
and allows you to invest your money at a good interest rate,
while at the same time assisting the Church to finance churches
and schools around the Union. Further down the page you will
find some frequently
asked questions about Revolving Fund, as well
as our disclaimer.
The Association is the legal entity for the Southern Union
Conference. They are responsible for all the Union's buildings,
land, equipment, and repairs and maintenance.
The Association staff does the accounting for endowments -
money given for a specific purpose; and charitable gift annuities
originally written by the Association - your local conference
currently write charitable gift annuities; and they are responsible
for investing monies given by individuals for a project the
individual is interested in. Usually, these projects are for
specific schools or programs the donor is interested in.
Recent News about SURF
Trust accounting makes changes
Larry Davis, assistant director, has retired and
moved to Collegedale. He will be visiting all the current Southern
Union Trustors this year. As of March, 2007, Jose LeGrand has
become the trust services director.
We are pleased to announce that the Southern Union has entered
into an agency relationship with Western Adventist Foundation
to administer our trust accounts. The Foundation was founded
in 1997 by the Pacific Union Conference of Seventh-day Adventists
to provide trust management and related services to Adventist
organizations and individuals wishing to benefit Adventist causes
and missions. The Foundation comes to us with a history of varied
expertise in the trust administration field. The Foundation
will be actively involved in the management of your account
as the Southern Union Conference agent.
Foundation contact information:
Western Adventist Foundation
1225 West Washington St., Suite 120
Tempe, Arizona 85281
Phone: 602-220-0042
Fax: 602-220-0041
The Southern Union Conference Association trustors will still
call the Union if they need assistance. You may contact the
Association director at 404-299-1832, if you need assistance.
Southern
Union Revolving Fund now open
to investers
The Southern Union Revolving Fund Board has voted
effective immediately to open SURF to all members of the Southern
Union constituency currently residing in the Southern Union
territory. Based on approved state caps we can grow the fund
by at least ($40,000,000) forty million dollars. This would
be in addition to the $154,000,000 currently in the fund.
The current interest rates are 4 ½ % for investors and
6 ½% for loans to churches and institutions. These rates
are very attractive to churches and institutions who need to
borrow funds and to investors who have as their main goal the
mission of church growth in the Southern Union.
We realize that currently CD’s and other investments have
the potential for higher returns to investors due to a more
positive investment market. As a result some of our investors
that came in to SURF four and five years ago when our rates
were higher than CD’s have now withdrawn their funds for
higher rates elsewhere thus creating a need to reopen SURF.
This now provides a wonderful opportunity for members of the
Southern Union who are interested in investing in the mission
of the eight conferences and educational institutions in the
Southern Union.
The Southern Union Revolving Fund is now open to all members
of the Southern Union through one of its eight local conferences.
SURF is now taking demand note applications and will continue
to offer investment opportunities until we have reached our
$40,000,000 (forty million dollar) goal.
The purpose and goal of the SURF has always been to provide
low cost loans to churches and institutions in the Southern
Union as well as providing a reasonable rate of return to investors
who are willing to invest long-term to fund church growth in
the Southern Union.
SURF is considered a 90-day demand note. This means that withdrawals
from the fund could take up to ninety days to be fulfilled.
However, most requests for withdrawal are handled within the
same week the request is made. SURF funds must be loaned out
to churches and institutions or re-invested to achieve a rate
of return equal or greater than the interest rate paid to investors
in order to be viable. For large withdrawals it may require
selling some investments and SURF needs a reasonable time frame
to accomplish the sell equitably.
For more information about the Southern Union Revolving Fund
please contact the Southern Union (404-299-1832) or speak to
your local conference treasury department.
FAQs
about SURF
What is the primary obligation of SURF?
Notes:
The principal obligation of SURF is evidenced by 90-day demand
notes and/or 90-day renewable term notes with an interest rate
not exceeding the maximum set annually by the North American
Division. Actual rates are established by the SURF board. All
notes are demand notes, callable at any time by the SURF board.
Early withdrawals may include a penalty. Notes are issued exclusively
to members of the Seventh-day Adventist Church and denominational
entities, and are only promoted within the Southern Union. Notes
may also be issued to denominational entities serving as trustee.
If a denominational Association is trustee, interest is paid
to the trustee, not directly to the trustor.
How do I acquire notes?
Individuals
may purchase notes directly from the Revolving Fund through
their local conference, or purchase notes by establishing a
revocable trust through their local conference, which are invested
in SURF.
Why should I use Revolving Fund?
When
you save money in the Revolving Fund, you assist other congregations
to build or buy a church, and you earn a return on your investment.
Revolving Fund then makes funds available to churches, schools,
and certain other conference institutions at a lower rate of
interest.
How
do I participate?
- To open an account, a $1,000 minimum check payable per your
conference's instructions, is all that is needed. (Accounts
must keep a minimum balance of $1,000. If a withdrawal request
comes in that brings the balance below $1,000, the account
will be closed. Once an account is closed we cannot open a
new account for 90 days). Please request the exact amount
of money that you need. We cannot accept requests that ask
for all money over $1,000.
- If you
enter into a revocable trust agreement (see Trust Services
page) with your local Conference Association, request that
they invest your money in a Revolving Fund Note.
- Your
church and school may also invest in a Note with Revolving
Fund.
- If you enter into a self-administered revocable living trust
(RLT), you may choose to invest your money in SURF. If you
open a RLT, you are responsible for including the income on
your personal tax return. SURF mails 1099s by January 31st
of each year.
May
I withdraw my funds?
-
Yes! A portion or all may be withdrawn at any time without
penalty; however, please consider these to be long-term investments.
- Your money is in a 90-day demand note/90-day renewable term
note in South Carolina. In most cases, we can mail the check
the same week that you request the funds, if your request
is over $100,000 please request the money two weeks before
you need the funds.
- Interest is paid to the date of withdrawal.
- Your 90-day demand note is financing churches that have
loans up to 20 years.
- We cannot accept monies that you will need within the
year the account is opened.
- The purpose and goal of the SURF has always been to provide
low cost loans to churches and institutions in the Southern
Union as well as providing a reasonable rate of return to
our faithful investors who are willing to invest long-term
to fund church growth in the Southern Union.
- We recognize that circumstances change and emergencies arise.
Thus, a portion of the net assets in the Revolving Fund are
held for such needs. this is in accord with the North American
Division Working Policy and is in the by-laws of the Revolving
Fund.
- The Revolving Fund return, when taking eternity into consideration,
is far more than just money.
How
is my interest calculated?
-
Currently, interest earned is 4.5%.
- Interest is compounded quarterly.
- Interest is calculated using a 365/366 day year.
- If you have invested over $10,000 dollars in SURF, you may
choose to request a quarterly withdrawal check. If you have
less than $10,000 in SURF, please consult with your conference
for the manner in which you can request a withdrawal.
- The Revolving Fund can only lend funds to churches and schools
if there are investments by the constituents of the local
conference.
Are
my funds needed?
-
Yes! Thanks to your investments, churches and schools in your
local conference can grow.
- The
Revolving Fund can only lend funds to churches and schools
if there are investments by the constituents of the local
conference.
Disclaimer
This information
about the Southern Union Revolving Fund, Inc. (SURF) and its
unsecured notes is not an offer to sell, or a solicitation of
an offer to buy, any of the SURF notes, nor shall any of the
SURF notes be offered or sold to any person in any jurisdiction
in which such offer, solicitation, purchase or sale would be
unlawful under the securities law of such jurisdiction. The
offering of SURF notes is being made only by means of a prospectus
(offering circular) that may be obtained from SURF and which
contains detailed information about SURF (including financial
statements). To obtain a copy of the current prospectus (offering
circular) applicable to prospective purchasers of SURF notes
in a particular state, please contact the Southern Union Revolving
Fund at 404-299-1832.
Who
do I contact for additional information?
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