July 11, 2006

Don Anderson
RR6
71 Blackburn Road
Renfrew, Ontario
K7V 3Z9

Dear Don:

Re: Property of former Congregations of The Presbyterian Church in Canada

You asked for a ruling regarding the vesting of properties of former Congregations of the Presbyterian Church in Canada, which congregations entered Union in 1925.

While you asked for me to reference certain civil court decisions in my ruling, matters of civil law are beyond my role as General Secretary. Under paragraph (f) of Section 513 of The Manual, the General Secretary has the authority:

I issue this ruling based on my interpretation of church polity as set out in The Manual.

5.3 and 5.4 of the Basis of Union are relevant here:

5.3 of the Basis applies to all congregations of the negotiating denominations that entered the United Church at the time of church union. All property held by or on behalf of such congregations is to be held in trust for the congregation as part of the United Church pursuant to the terms of the Trusts of Model Deed. This provision was automatic for all congregations entering church union; no action was required of the congregation in order for the property of that congregation to be governed by 5.3 and the Trusts of Model Deed.

5.4 of the Basis sets out one exception to the rule established in 5.3. The exception applies to congregational property that was held solely for the benefit of the congregation, and not for the denomination of which it formed a part. The question then becomes whether the denomination of which that congregation formed part (Congregational, Methodist or Presbyterian) had any interest in the property of the congregation. If there was a denominational interest, the exception would not apply. If there was no denominational interest, the exception would apply.

If the exception applied, the congregation then had a choice. It could either continue to hold the property for the exclusive benefit of the congregation, or it could choose to hold the property on the same terms as set out in 5.3 i.e., for the congregation as part of the United Church pursuant to the Trusts of Model Deed. Under 5.4, it was presumed that the congregation would continue to hold the property for the exclusive benefit of the congregation unless the congregation consented to holding the property on the terms as set out in 5.3.

Section 266 of the by-laws elaborates on the exception and the circumstances in which it applies:

Paragraph 266(a) is clear and unequivocal. It states that the exception does not apply to the property of former Presbyterian congregations, except for those congregations in Alberta and Saskatchewan.

As mentioned in the discussion of 5.3 above, the exception would not apply if the Presbyterian denomination had an interest in the property of the congregation. Paragraph 266(a) states that “the provincial statutes incorporating the Board of Trustees of the Presbyterian Church in Canada vest a reversionary interest in such property in the denomination, should the congregation cease to exist.” Since the Presbyterian denomination did have an interest in the property of its congregations, the exception would not apply in any province other than Alberta or Saskatchewan.

It is therefore my ruling that the property of congregations that were formerly Presbyterian (other than in Alberta and Saskatchewan) are governed by the provisions of 5.3 of the Basis, as more particularly outlined in paragraph 266(a) of the by-laws.

I wanted to note briefly the implications for those congregations whose property is governed by 5.3 of the Basis. Such property is held in trust for the congregation as part of The United Church of Canada [Section 1, Trusts of Model Deed]. Presbytery approval is required before such property may be “sold, exchanged, or in any manner encumbered” [5.3, Basis]. If the congregation ceases to exist at any time, its property shall be applied for the benefit of The United Church of Canada as the Conference may determine [Section 9, Trusts of Model Deed]. A congregation “ceases to exist” by Presbytery action, either approving a resolution passed by the congregation to disband, or making a decision to disband the congregation [Section 270, by-laws].

Recognizing the deep sensitivities in matters of property and being conscious of the possibility of significant differences with whatever is decided, the Manual provisions cited above have attempted to provide clear guidance to Presbyteries exercising their decision-making role. By doing so, those who determined our policies assumed that in exercising its authority a Presbytery seeks at all times to reflect the integrity of the Gospel by acting fairly, impartially, and in good faith. It strives to provide careful consideration of the issues at hand as well as the impacts of its decisions made in good faith.

Yours very truly,

Jim Sinclair
General Secretary, General Council

cc.
Conference Executive Secretaries
Joe Ramsay, MEPS