The company makes mortgage-backed loans from $100,000 to $1 million to churches and other non-profit religious organizations for the purchase, construction or refinancing of real estate and improvements.
The company will use the proceeds to fund mortgage loans made to churches and other non-profit religious organizations and to purchase bonds issued by those organizations. Some of the proceeds may be used to pay down its line of credit, redeem its equity securities and repay maturing certificates.
As of Sept. 30, the company had 46 mortgage loans in the principal amount of $16 million and had bought $4.4 million in church bonds.
The company is located in the leased offices of the underwriter, American Investors Group, in Minnetonka.
American had underwritten about 177 church bond financings, in which about $291.8 million in first mortgage bonds have been sold to public investors. The average size of church bond financings underwritten by American since its inception is about $1.65 million.
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