Grace and Peace to you in the name of Jesus Christ. Thank you for partnering with the Kansas Methodist Foundation through a Certificate of Participation. Through your investment, the Foundation is able to provide loans to Methodist churches and organizations to further their ministries. We are grateful for you.
Recently the Kansas Methodist Foundation transitioned to a new sub-accounting system for our total ministry to better serve our churches, organizations, and families. We have discovered in this transition that we will have to make two changes to our Certificate of Participation program, which we seek to share with you in this notice letter.
- Effective May 1, 2024, the maturity date for all Certificates of Participation will be adjusted to be the 15th of the month for the month in which it matures. That is, if a Certificate of Participation had previously matured on January 27, 2025, its new maturity date will now be January 15, 2025. Interest will continue to accrue until the new maturity date. All future Certificates of Participation can be purchased at any time within a month, however, its maturity date will be the 15th of the month for the maturity month, either after one-year or two-years depending on the investment choice.
- The second change, effective May 1, 2024, is the interest strategy options we can facilitate. All Certificates of Participation will receive interest on one or the other strategy. KMF will automatically apply the closest related strategy to a current Certificate, which can be changed at maturity if desired. Here are the interest strategy options:
a. One option is for Certificates of Participation to be set to receive a “monthly compounding” interest strategy. Thus, interest will be earned and applied to the Certificate on a monthly basis, providing a slightly higher return for investors upon maturity because of the compounding. A full or partial distribution, upon request, can occur at maturity.
b. The other option is for the Certificate to make distribution of earned interest for a period of six months and distributed to the Investor semi-annually. This interest strategy is termed, “semi-annual distributed”. The interest will not be compounded on a monthly basis, but rather will be distributed to the investor every six months.
If you should have any questions regarding your investment or our services, please contact our office
Sincerely,
Rev. Dr. Dustin D. Petz
President and CEO
