Last Updated: 1/14/2025
Propósito
To establish requirements and procedures for Parroquias when it is necessary to obtain approval for certain transactions or corporate actions from all members of the Junta Corporativa Parroquial in the form of a Proxy or other type of corporate resolution, and, when necessary, other Aprobaciones canónicas.
Policy
I. The following actions by a Parroquia require written approval of all five members of the Junta Corporativa Parroquial, which is customarily done via a Proxy:
1) Purchase of personal property in excess of the Umbral de proxy;
2) Purchase of real property in any amount;
3) New building construction, renovation, or restoration projects in excess of the Umbral de proxy regardless of the source of the funds;
4) Any significant change to worship spaces that are connected to the celebration of the sacraments, including but not limited to, the altar, the tabernacle, the baptistery, the crucifix, addition or removal of a communion rail, or the orientation of the sanctuary (all of these items also require approval from the Office of Worship);
5) Establishing cemeteries, Columbarios, or engaging in feasibility studies related thereto (see also Policy N. 213 Parish Cemeteries and Columbaria);
6) Maintenance projects in excess of the Umbral de proxy;
7) Construction change orders which increase costs by 10% of the amount of the original approved project;
8) Loans, mortgages, or lines of credit from lending institutions;
9) Consolidation or refinancing of loans;
10) Revision of mortgages, loans, lines of credit;
11) Contracting with architects or planners for renovations or building projects;
12) Contracting with fundraising consultants for building projects;
13) Engaging in feasibility studies for building projects;
14) Initializing a feasibility study or a capital fund campaign.;
15) Establishing, modifying or terminating endowments (typically done through a corporate resolution signed by all members of the Junta Corporativa Parroquial);
16) Amendments to the Parroquia corporate articles or by-laws.
17) Leases of Parroquia property (real or personal) for less than one year. (This does not apply to priests living in a Parroquia property where they are not currently assigned.)
II. The following actions by a Parroquia require Aprobaciones canónicas, in addition to written approval of all five members of the Junta Corporativa Parroquial:
1) Sale of real property in any amount;
2) Sale of personal property valued in excess of the Umbral de proxy;
3) Construction of new church building;
4) Initiating a program of financing by the issuance of instruments such as bonds;
5) Transfer of real property rights such as temporary or permanent easements, liens, options, and contracts for deed;
6) Resolving litigation or potential litigation claim(s) by financial settlement where the cost to the Parroquia is in excess of the Umbral de proxy;
7) Leases and agreements for the use of any Parroquia property for a term of one year or longer. (This does not apply to priests living in a Parroquia property where they are not currently assigned.)
8) Demolition, annexation, or transfer of property.
9) Loans, mortgages, or lines of credit from lending institutions in the amount of $3.5 million or greater.
III. All corporate resolutions and Proxies must be duly recorded so that all actions of the Parroquia corporation are readily at hand for future reference. Since Parroquia corporations are incorporated under the laws of the State of Minnesota, care must be taken that the above requirements for legal corporate action are observed. All requests for Proxies must be signed by the Pastor and all Administradores.
IV. The Proxy request letter should follow the form of the Proxy request letter template (attached to this policy). The letter must include:
1) Detailed description of the request;
2) Rationale for the request;
3) Cost estimate (a cost range if a specific amount is not known);
4) Source of the funds required for the proposed expenditure;
5) Other supporting documents (lease agreements, purchase agreements, quotes/estimates, etc.);
6) Name of architect and contractor, when applicable.
7) Confirmation that the Consejo Parroquial de Finanzas has been consulted, offered its advice regarding, and approved the substance of, the Proxy request.
V. In order to receive required approvals, at least 50% of the expenditure is required in cash and the remainder in capital campaign pledges. In addition, the Parroquia must be current on its obligations to the Archidiócesis (assessments, general insurance program and priest benefits) and other trusts (lay pension, priest pension and lay medical/dental benefits) or have an executed Acuerdo de cooperación financiera with the Archidiócesis for past due amounts.
VI. All agreements, contracts, and leases must be reviewed by legal counsel of the Parroquia and a representative from the service office of the Archdiocesan insurance program.
VII. Transactions that require Aprobaciones canónicas will not be approved until the AFC and College have convened at a regularly scheduled meeting. It is necessary to submit these Proxy requests well in advance of the required approval to ensure proper consultation and discussion by these bodies. It may take up to 120 days to obtain approval for such transactions. Please plan accordingly.
VIII. For all Aprobaciones canónicas, the following process is required:
1) The Parroquia must first contact the Archdiocesan Chief Financial Officer (CFO) prior to entering into any agreements or making any decisions that are binding on the Parroquia. En Parroquia must provide the CFO with the following information:
a) An overview of the action the Parroquia is considering and the rationale for the action;
b) Verification that the Pastor has consulted with the Administradores, the Consejo Pastoral Parroquial, and the Consejo Parroquial de Finanzas;
c) Any other requirements as set forth in other Archdiocesan Políticas, including Policy N. 206 Sale, Purchase, and Lease of Parish Property.
2) Parroquia submits a Proxy request letter to the CFO.
IX. No transactions requiring either Aprobaciones canónicas or approval of the entire Junta Corporativa Parroquial may be commenced until all necessary approvals have been obtained by the Parroquia.
X. After receiving a Proxy from the Arzobispo y el Vicario General, the Pastor shall conduct a corporate meeting with the two lay members of the corporate board of directors (Treasurer and Secretary) in attendance and cast the votes of the Arzobispo y Vicario General pursuant to the terms of said Proxy.
XI. All Proxies received from the Arzobispo y Vicario General shall be valid for one year following the date of issue, provided that there have been no material changes in any of the relevant circumstances relating to the request for the Proxy between the time the Proxy was issued and the contemplated corporate action taken.
