Section 12. Sale, mortgage and lease of real property of religious corporations  


Latest version.
  • 1. A religious corporation shall  not  sell,  mortgage  or  lease  for  a term exceeding five years any of its real property without
      applying for and obtaining leave  of  the  court  therefor  pursuant  to
      section  five  hundred  eleven  of the not-for-profit corporation law as
      that section is modified by paragraph (d-1) of subsection one of section
      two-b of this chapter, except that a religious corporation may execute a
      purchase money mortgage or a purchase money security agreement  creating
      a  security  interest  in  personal  property  purchased  by  it without
      obtaining leave of the court therefor.
        2. The trustees of an incorporated Protestant Episcopal  church  shall
      not  vote  upon  any resolution or proposition for the sale, mortgage or
      lease of its real property, unless the rector of such church, if it then
      has a rector, shall be present, and shall not make  application  to  the
      court for leave to sell or mortgage any of its real property without the
      consent  of  the  bishop  and standing committee of the diocese to which
      such church belongs, or execute and deliver a lease of any of  its  real
      property  for a term exceeding five years without similar consent of the
      bishop and standing committee  of  the  diocese  to  which  such  church
      belongs;  but  in  case  the  see  be vacant, or the bishop be absent or
      unable to  act,  the  consent  of  the  standing  committee  with  their
      certificate of the vacancy of the see or of the absence or disability of
      the bishop shall suffice.
        3.  The  trustees  of  an incorporated Roman Catholic church shall not
      make application to the court for leave to mortgage, lease or  sell  any
      of  its real property without the consent of the archbishop or bishop of
      the diocese to which such church belongs or in case of their absence  or
      inability   to   act,  without  the  consent  of  the  vicar-general  or
      administrator of such diocese.
        4. The trustees of an incorporated Ruthenian Catholic  church  of  the
      Greek  rite  shall  not  make  application  to  the  court  for leave to
      mortgage, lease or sell any of its real property without the consent  in
      writing  of  the Ruthenian Greek Catholic bishop of the diocese to which
      such church belongs, or, in case of his absence  or  inability  to  act,
      without  the  consent  of  the  vicar-general  of  such bishop or of the
      administrator of such diocese.
        5. The trustees of an incorporated African  Methodist  Episcopal  Zion
      church  shall  not  make application to the court for leave to mortgage,
      lease or sell any of its real property without the consent of the bishop
      of the diocese to which said church belongs, or in case of  his  absence
      or inability to act, without the consent of the annual conference having
      jurisdiction over such church.
        5-a. The trustees of an incorporated Presbyterian church in connection
      with  the General Assembly of the Presbyterian Church (U.S.A.) shall not
      make application to the court for leave to mortgage, lease or  sell  any
      of  its  real  property without the consent in writing of the particular
      Presbytery with which said church is connected.
        5-b. The trustees of an incorporated United Methodist church shall not
      make application to the court for leave to mortgage, lease, or sell  any
      of  its  real  property  without  the  written  consents of the district
      superintendent and the preacher in charge and the authorization  of  the
      charge conference by a majority of those present and voting at a meeting
      of  the  charge conference, provided that not less than ten days' notice
      of such meeting and proposed action  shall  have  been  given  from  the
      pulpit  of  the  charge, or, if no regular services are held, by mail to
      the members of the charge conference.
        5-c. The trustees of an incorporated  Reformed  Church  in  connection
      with the General Synod of the Reformed Church in America, shall not make
    
      application to the court for leave to mortgage, lease or sell any of its
      real  property  without  the  consent  in writing of the trustees of the
      Classis with which said church is connected.
        6.  The  petition  of  the  trustees  of  an  incorporated  Protestant
      Episcopal church or Roman Catholic church  shall,  in  addition  to  the
      matters  required  by article five of the not-for-profit corporation law
      to be set forth therein, set forth  that  this  section  has  also  been
      complied  with.  The petition of the trustees of an incorporated African
      Methodist Episcopal  Zion  church  shall  in  addition  to  the  matters
      required by article five of the not-for-profit corporation law to be set
      forth  therein, set forth that this section has also been complied with.
      The petition of the trustees of an incorporated Presbyterian  church  in
      connection   with  the  General  Assembly  of  the  Presbyterian  Church
      (U.S.A.), shall, in addition to the matters required by article five  of
      the  not-for-profit  corporation  law to be set forth therein, set forth
      that this section has also been  complied  with.  The  petition  of  the
      trustees  of  an incorporated United Methodist church shall, in addition
      to  the  matters  required  by  article  five  of   the   not-for-profit
      corporation law to be set forth therein, set forth that this section has
      also been complied with.
        7.  Lots,  plots  or burial permits in a cemetery owned by a religious
      corporation may, however, be sold, also all or part of such cemetery may
      be conveyed to a cemetery corporation, without applying for or obtaining
      leave of the court. No cemetery lands of a religious  corporation  shall
      be mortgaged while used for cemetery purposes.
        8.  Except  as  otherwise  provided  in  this  chapter in respect to a
      religious corporation of a specified denomination, any solvent religious
      corporation may, by order of the court, obtained as  above  provided  in
      proceedings  to  sell, mortgage or lease real property, convey the whole
      or any part of its real property to another religious corporation, or to
      a membership, educational, municipal or  other  non-profit  corporation,
      for  a  consideration  of one dollar or other nominal consideration, and
      for the purpose of applying  the  provisions  of  article  five  of  the
      general  corporation  law,  a proposed conveyance for such consideration
      shall be treated as a sale, but it shall not be necessary  to  show,  in
      the  petition or otherwise, nor for the court to find that the pecuniary
      or proprietary interest of the  grantor  corporation  will  be  promoted
      thereby;  and  the  interests  of  such  grantor  shall  be deemed to be
      promoted if it appears that religious or  charitable  objects  generally
      are  conserved by such conveyance, provided, however, that such an order
      shall not be made if tending to  impair  the  claim  or  remedy  of  any
      creditor.
        9. If a sale, mortgage or lease for a term exceeding five years of any
      real  property  of any such religious corporation has been heretofore or
      shall be hereafter made  and  a  conveyance  or  mortgage  executed  and
      delivered  without  the  authority of a court of competent jurisdiction,
      obtained as required by law, or not in accordance with  its  directions,
      the  court  may, thereafter, upon the application of the corporation, or
      of the grantee or mortgagee in any such conveyance or mortgage or of any
      person claiming through or under any such grantee or mortgagee upon such
      notice to such corporation, or its successor, and such other  person  or
      persons  as  may  be  interested  in  such  property,  as  the court may
      prescribe, confirm said previously executed conveyance or mortgage,  and
      order  and  direct  the execution and delivery of a confirmatory deed or
      mortgage, or the recording of such  confirmatory  order  in  the  office
      where  deeds  and  mortgages  are  recorded  in  the county in which the
      property is located; and  upon  compliance  with  the  said  order  such
      original  conveyance or mortgage shall be as valid and of the same force
    
      and  effect  as  if  it  had  been  executed  and  delivered  after  due
      proceedings  had in accordance with the statute and the direction of the
      court.  But no confirmatory order may be  granted  unless  the  consents
      required  in  the first part of this section for a Protestant Episcopal,
      Roman Catholic, Presbyterian church or an incorporated African Methodist
      Episcopal Zion church or an incorporated United  Methodist  church  have
      first  been  given  by the prescribed authority thereof, either upon the
      original application or upon the application for the confirmatory order.
        10. The provisions of this section shall not apply  to  real  property
      heretofore  or  hereafter  acquired on a sale in an action or proceeding
      for the foreclosure of a mortgage owned by a  religious  corporation  or
      held by a trustee for or in behalf of a religious corporation or to real
      property  heretofore or hereafter acquired by a religious corporation or
      held by a trustee for or in behalf of a religious corporation by deed in
      lieu of the foreclosure of a mortgage owned, either in whole or in part,
      whether in certificate form or otherwise, by a religious corporation.