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The certificate is a security with a purchase price and a maturity value to the owner. It is issued by CEP and is an unsecured general obligation of the company. It is not secured by property, nor does any government authority, organization, or person guarantee it. CEP will provide Offering Circulars to all inquiries and will distribute them to all participants in the certificate program.

When purchased, certificates are assigned to CEP by the church and become additional collateral security for the church loan. They must be held for their 20-year maturity even if the church pays off the loan early. The certificate may be redeemed for 150 percent of the cash purchase price at maturity only.

Church Extension Plan offers two types of certificates: a Regular Certificate with the Optional Prepayment Policy and a Time Certificate that has no prepayment provision. Churches as well as individuals 61 years of age or older must purchase Time Certificates.

Certificates are sold in denominations from $500 to $5,000. They may be purchased with a minimum monthly payment of $10 per $500 certificate over a 50-month time period or paid in full at time of purchase.

If the certificate is purchased on a 50-month payment schedule, a monthly Certificate Billing Statement will be sent to the certificate holder until their account is paid in full. The statement will reflect any payments received, the unpaid balance, and any missed payments.

Should an individually owned certificate accumulate six missed payments, it will automatically be transferred into the church’s name and one of the following will occur:

1. The church can find another individual to transfer the certificate to; OR
2. The church can assume the monthly payment.

When an individually owned certificate is to be transferred to a new owner, the Church Certificate Coordinator is to contact CEP and request the appropriate transfer form be sent to the church. The new certificate owner will need to complete and return the Transfer Purchase Agreement Form and include a payment for one month. The original owner forfeits all value in the certificate. The new owner assumes the accrued value and is responsible for the monthly payments until the unpaid balance is paid in full.

When a certificate is paid in full, the owner will receive the Church Certificate document unless the certificate is gifted to the church. If the certificate is gifted to the church, the church will receive the original certificate and the purchaser will receive a letter in the mail that states the certificate has been paid in full.