Secured Investor Certificates

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Secured Investor Certificates

4. SECURED INVESTOR CERTIFICATES

Secured investor certificates are collateralized by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted average interest rate on the certificates was 6.33% and 6.35% at March 31, 2019 and December 31, 2018, respectively. Holders of the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion. Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately $220,000 and $1,671,000 at March 31, 2019 and December 31, 2018, respectively. The secured investor certificates have certain financial and non-financial covenants identified in the respective series’ trust indentures.

The estimated maturity schedule for the secured investor certificates at March 31, 2019 is as follows:

April 1, 2019 through March 31, 2020	$	2,780,000
April 1, 2020 through December 31, 2020		3,078,000
2021		2,378,000
2022		2,164,000
2023		2,511,000
Thereafter		14,640,000
	$	27,551,000
Less deferred offering costs		(880,142	)
Totals	$	26,670,588

In September 2017, the Company filed a registration statement with the Securities and Exchange Commission to offer $10,000,000 worth of Series E secured investor certificates. The offering was declared effective by the SEC on November 6, 2017. The certificates are being offered in multiples of $1,000 with interest rates ranging from 4.00% to 6.50%, subject to changing market rates, and maturities from 5 to 15 years. The certificates are collateralized by certain mortgage loan receivables and church bonds of approximately the same value. At March 31, 2019, approximately 3,187 Series E certificates had been issued and were outstanding for $3,187,000.