What makes church bonds underwritten by American Investors Group different from other church bonds?
We underwrite bonds to our exacting public offering standards, designed to first and foremost protect investors’ funds. Each church must meet our established qualification standards for the loan and complete a “due diligence” process. We require independently prepared audited financial statements of each issuing church, not simply financial statements compiled by the church without independent verification. We require that churches make weekly rather than monthly mortgage payments on their bonds. We require issuing churches to obtain title, casualty, and liability insurance on their property. In addition, we obtain independent appraisals of the church property to serve as collateral for the bonds. We establish a cash reserve account for each bond issue that provides a buffer in the event the issuing church ever misses a mortgage payment, and we require a key-man life insurance policy on the church’s senior pastor to protect bondholders in the unlikely event of his/her death.
