Common use of Church Bonds Clause in Contracts

Church Bonds. Before you make a decision about whether to purchase a church bond, you should consider the characteristics and risks of a typical church bond to determine whether a church bond investment is consistent with your investment goals. Church bonds may not be suitable for all investors. The client should have the financial ability to hold this investment until maturity. Church bonds are not rated by a credit rating agency. Church bonds should not be over-concentrated in any portfolio. These products are not liquid. Although Stifel may choose to do so, we are not required to make a secondary market in these securities. Valuations are from sources believed to be reliable; however, due to the lack of a viable secondary market, your ability to obtain a trade price at or near the evaluated statement price may not be possible. The investor may not receive full investment value if the bond is sold prior to maturity. The church bond investor should be willing to accept significant risk, and liquidity should not be a concern. Church bonds may be redeemed by the issuer on as little as 15 days’ notice. Furthermore, church bonds have some unique risks, such that the church’s ability to pay interest and principal to you may be affected by any number of things, including, but not limited to: inadequate collections from church members, the loss by the church of its tax-exempt status, or the departure of a popular pastor. The global COVID-19 pandemic could negatively affect the church’s operations. For the specific features and risks unique to your church bond(s), you should refer to the prospectus provided to you at the time of purchase. Additional information on church bonds can be found at the following website: xxx.xxxxxx.xxx/xxxxxxxxxxx.

Church Bonds. Before you make a decision about whether to purchase a church bond, you should consider the characteristics and risks of a typical church bond to determine whether a church bond investment is consistent with your investment goals. Church bonds may not be suitable for all investors. The client should have the financial ability to hold this investment until maturity. Church bonds are not rated by a credit rating agency. Church bonds should not be over-concentrated in any portfolio. These products are not liquid. Although Stifel may choose to do so, we are not required to make a secondary market in these securities. Valuations are from sources believed to be reliable; however, due to the lack of a viable secondary market, your ability abili- ty to obtain a trade price at or near the evaluated statement price may not be possible. The investor may not receive full investment invest- ment value if the bond is sold prior to maturity. The church bond investor should be willing to accept significant risk, and liquidity should not be a concern. Church bonds may be redeemed by the issuer on as little as 15 days’ notice. Furthermore, church bonds have some unique risks, such that the church’s ability to pay interest and principal to you may be affected by any number of things, including, but not limited to: inadequate collections from church members, the loss by the church of its tax-exempt status, or the departure of a popular pastor. The global COVID-19 pandemic could negatively affect the church’s operations. For the specific features and risks unique to your church bond(s), you should refer to the prospectus provided to you at the time of purchase. Additional information on church bonds can be found at the following fol- lowing website: xxx.xxxxxx.xxx/xxxxxxxxxxx.