Resolution for closure of

The Orchard United Methodist Church

Tupelo District

GCFA# 329934 District # 10465

Whereas, The Orchard United Methodist Church (Orchard), through its senior pastor, communicated with the Bishop and District Superintendent that the Orchard, due to differences of opinion on how the Orchard’s ministry would move forward, voted 990 out of 998 votes cast, the desire to withdraw from the Annual Conference, and

Whereas, the Orchard senior pastor was advised that only the membership may withdraw, but a church must be closed only through The Book of Discipline of the United Methodist Church 2016, paragraphs 2549 and 213, and

Whereas, The Book of Discipline of the United Methodist Church 2016 sets forth guidelines for the viability of the remaining members to form a new congregation or place those members into existing United Methodist congregations, with the Buildings and Locations Committee analyzing and reporting on disposition of the property in the event of closure, and

Whereas, The Bishop and District Superintendent instructed the Orchard clergy to maintain their credentials until The Book of Discipline of the United Methodist Church 2016 process could be complete; however, the clergy chose to voluntarily surrender their credentials in April 2017, altering The Discipline process, and

Whereas, the appraisals presented to the Conference Trustees showed that the current sales value of the property was less than three million dollars, and

Whereas, the debt on the property including signed leases and mortgage notes payable to the bank was in excess of $4.5 million dollars, and

Whereas, an initial called church conference was canceled due to the non-availability of necessary documentation to make a determination in compliance with paragraph 213, and

Whereas, the members of The Orchard UMC had surrendered their membership in a church meeting on April 23, 2017 with the exception of 13 members, and

Whereas, the district superintendent was in contact with those members to place their membership in another UMC, and

Whereas, a joint executive team made up of and elected by the Mississippi Conference Council on Finance and Administration and the Conference Trustees determined from the Conference Chancellor that the loan of The Orchard UMC was in default with the bank and the Conference had subordinated its place to the trust clause by agreeing to allow the church to renew the loans that were obtained to purchase and construct the physical plant, and

Whereas, the Building and Location Committee of the Tupelo District saw no missional need in retaining the property, and

Whereas, the conference accepting the liability on the property while trying to organize a new church in that location would cause a severe financial hardship on the conference, and

Whereas, allowing the loans to go into default resulting in repossession, the conference would lose its interest in the property as well as damage the ability of any other United Methodist congregation to obtain loans in the future,

Therefore, be it resolved, that the Bishop and District Superintendents acting ad interim on the advice of Tupelo District Church Buildings and Location, Conference CFA, Conference Trustees, and Legal Counsel, hereby declare The Orchard United Methodist Church closed,

And be it further resolved, the Conference Trustees are authorized in compliance with sub paragraphs found in Paragraph 2549 of The Book of Discipline of the United Methodist Church 2016 to complete the transfer of the property by not asserting its rights pursuant to the trust clause binding the real property of the closed church formally known as The Orchard UMC and transfer the said real property to The Orchard Church in consideration of their fully accepting the debt on the property and releasing the Mississippi Conference from any residual liability, and by paying the conference and district apportionments in full for the 2017 year. In order to memorialize said actions, the Conference Trustees are authorized to enter into that certain instrument titled “Agreement to Separate, Transfer Interest in Property, Release of Claims, and Covenant Not to Sue” as presented to the Bishop and Cabinet and as modified and approved by the Chancellor.

The Bishop’s Consent that these actions are in compliance with The Book of Discipline of the United Methodist Church 2016 is attached.

Bishop James E. Swanson, Sr., Resident Bishop

Reverend Dr. Embra Jackson, Dean of the Cabinet

Reverend Dr. Stephen Cook, Secretary of the Cabinet

This Quitclaim Deed was executed and delivered with the consent of the presiding Bishop of The Mississippi Annual Conference of The United Methodist Church, Incorporated.

The presiding Bishop of The Mississippi Annual Conference of The United Methodist Church, Incorporated, has determined that the transfer of the Premises conforms to the provisions of the Book of Discipline of The United Methodist Church.

Bishop James E. Swanson, Sr., Resident Bishop