Purchase Money Mortgage

• The laws of the state of New York do not require approval by the courts for a purchase money mortgage or a loan to purchase personal property secured by that property under any circumstances. In other words, a church body can determine that it desires to purchase a new building or property to build a building on and can do this under approval of its own governing body, subject to its bank's approval.
  
  

Selling Property

• A church body in New York state cannot sell any of its real property without court approval. The only exception to this rule is that a church can sell cemetery property or property to be used as a cemetery without approval of the court.
  
  

Approval for Mortgage

• If a church in New York state wants to take a mortgage on its property for longer than five years that is not a purchase money mortgage, the church must seek permission to move forward with this mortgage. The church must file a petition with the courts in New York and have that petition approved to be allowed to apply for a mortgage with the bank. The same rules apply if the church wishes to lease property with a term longer than five years.
  
  

Denominational Boundaries

• New York state law places other restrictions on a church's ability to borrow money on a non-purchase money mortgage, depending on the denomination or affiliation of the church. In many cases, the law requires that the church receive approval from the leadership of its overseeing body first. This may be a bishop or rector or other named overseer. Once this overseer has given his approval, the church may ask for court approval before applying for the loan.