Contract PolicyFor The Diocese Of Springfield-cape Girardeau 1. LEGAL ISSUES. The Roman Catholic Diocese of Springfield-Cape Girardeau is a Missouri Not-For-Profit Corporation, and, among other things, owns the legal title to all of the real estate of the Diocese, such as the parish churches, schools or other entities or institutions making up the Diocese. A parish is not a legal entity for civil law purposes and, therefore, cannot enter into a legally binding contract. The Bishop is the President of the Corporation, and he or other authorized officers are the only persons who can enter into contracts which are binding on behalf of the Corporation. Pastors and other parish personnel, not legally officers of the Corporation, cannot act on the Corporation's behalf by signing contracts or entering upon other legal undertakings on its behalf. 2. CONTRACTS FOR THE PURCHASE OR SALE OF REAL ESTATE. Contracts for the purchase or sale of real property must be signed on behalf of the Diocesan Corporation by the Bishop or another corporate officer. Pastors or parish council representatives authorized by the pastor may be in a good position to negotiate or assist in negotiating such transactions in the preliminary stages, but are not authorized to sign the final contract. Attorneys, real estate agents, or other qualified persons familiar with a particular situation may prepare proposed contracts for transactions. Such cooperation is welcomed by Diocesan representatives. However, because of the need for meeting diocesan corporation requirements, it is necessary that any such contracts be presented to the Diocesan Director of Development and Properties for review. In many instances, the Diocesan Director of Development and Properties will obtain assistance from the Diocesan attorney. No real estate contracts or agreements can be entered into without approval at the Diocesan level. 3. GIFTS AND BEQUESTS. In general, proper wording for gifts and bequests of either real or personal property should be: Roman Catholic Diocese of Springfield-Cape Girardeau, a Missouri Not-For-Profit Corporation. NOTE: If a donor wishes the gift to benefit a particular parish, school, or purpose, the following should be added after the word "corporation:" For The Exclusive Use and Benefit of [a particular parish, school, purpose, etc.]. Canon Law requires that the wishes of the donor in all instances be observed by the Diocese. Civil law requires the title be in the name of the Diocesan Corporation. The wording is equally applicable to gifts of real or personal property. If a piece of real property is erroneously titled in the name of a parish or other church organization rather than as indicated above, considerable legal work and legal expenses may well result. 4. MAKING A GIFT OF REAL ESTATE. Persons interested in making a gift of real estate to the Diocese of Springfield-Cape Girardeau or any of its parishes or organizations should contact their Pastor or the Director of Development and Properties at the Catholic Center. Donors may make their gift for a particular parish or diocesan ministry. They may also choose to allow the Bishop to make use of their gift for whatever ministry he feels needs additional funding. In all instances Canon Law requires that the wishes of the donor be honored by the parish or the Diocese. Because the diocesan corporation is the legal entity recognized by the state of Missouri, the Diocese reviews and approves gifts on behalf of all its parishes, schools, and other entities before final acceptance. Donors or their representatives may be contacted for further information in order to properly make this review. The length of time needed to evaluate a potential gift will vary according to the complexity of the information needed. The Diocese does not appraise the value of gifts. Donors are encouraged to seek the advice of the appropriate professionals when they obtain their appraisal(s) for the purpose of establishing the value of the gift. They, in turn, may wish to contact the Diocesan Office of Development and Properties for proper legal titles and other information pertinent to the transfer of the gift. Donors are likewise encouraged to seek appropriate professional assistance when preparing any legal documentation that may be required such as IRS form 8283. 5. CONSTRUCTION CONTRACTS. Diocesan "Guidelines For Construction" include a treatment of construction contracts on page 5. Any such contracts are to be reviewed by the Diocesan Director of Development and Properties, who determines whether or not the Diocesan attorney also reviews them. We also use three other documents: 1) the Addendum to Agreement Between Owner and Contractor; 2) the Addendum to Agreement Between Owner and Architect; and 3) the Exempt Project Certificate, used by contractors to obtain materials without paying the Missouri sales tax. 6. BUILDING OR REAL ESTATE LEASES OR RENTAL AGREEMENTS. Because such agreements affect and involve real property, the comments in the previous paragraphs are equally applicable to leases or rental agreements, whether for a lessor or lessee, and must be reviewed by the Director of Development and Properties and/or a Diocesan attorney. 7. OTHER CONTRACTS. Any transaction which exceeds $5,000.00 should first be brought to the attention of the Diocesan Director of Development and Properties. 8. INSURANCE REQUIREMENTS. Any contractor or other organization doing work for the Diocese or for a parish, school, or other Diocesan organization must have comprehensive general public liability insurance. The contractor or organization should furnish to the Director of Development and Properties a complete certificate of insurance,[bold should be hypertext link] as explained elsewhere. Back to |