Posted by Friend [Friend] on November 10, 1999 at 13:58:19 {AAJB0ph6mYrRIg7iiOekOgnjR4Br/g}:
In Reply to: KH Question posted by Farkel on November 10, 1999 at 13:27:35:
Doug
Who has the rights to sell Kingdom Halls, or to mortgage them?
Assuming the building is free and clear of dept, congregation publishers, usually baptized congregation members. Even when the building is not free and clear congregation publishers still maintain that right except that a financial obligation remains to simultaneously debt. It works like a normal closing.
For a congregation to own property it must have some legal identity. Usually that entity is set up as some sort to trust or corporation, depending upon what country you are in. In the case of a corporation there would be bylaws to govern how decisions relative to assets are made. Usually those bylaws require parliamentary decisions on such issues whereby congregation members would have final say on expenses beyond normal operating expenses. In this case a majority vote of congregation members would decide when and how to sell or mortgage the building.
What happens to a Kingdom Hall if a congregation dwindles down to only a few members, and the Kingdom Hall is owned free and clear, and the few members cannot pay for property taxes and upkeep?
By that time the Society would either assist in meeting the tax burden or else recommend that the building be sold and congregations merged. In the end that decision would be left to the congregation involved.
Has the society ever "foreclosed" on a KH loan?
Yes, but that is pretty rare. There are plenty of congregations these days that are granted loans without ability to pay back based upon the Society’s normal guidelines for such debt. Congregations are always asked whether they can meet the scheduled mortgage payments. Some congregations say they do not think they can. There are such cases where the Society has in essence said, “Okay, here is the money you need, pay it back as best you can and when you can.” In some areas of the world there is little doubt about ability to repay, so much so that in some cases it is not even inquired about. Instead needed funds are just donated, as they are available. Usually those circumstances involve very underdeveloped areas and buildings are not of the sort that people, let say in England, would be accustomed to. But, for the area and society the structure is usually a step ahead. Larger branches like the United States and Canada regularly send funds for such projects.
Friend