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Canon 23 - Of Church Debt

Section 1. No indebtedness shall be incurred by an Aided Parish without prior approval of the Bishop and the Department of Finance.

Section 2. Indebtedness may be incurred by a Parish without the prior approval of the Bishop and the Department of Finance, where the debt service (i.e., annual payments of principal and interest) including debt service for all indebtedness heretofore incurred for current expenses and still existing, does not exceed 20% of the total annual receipts of such Parish during the preceding fiscal year. Short-term indebtedness in excess of the 20% limit may be incurred when there is reasonable expectation that it can be repaid in its entirety out of Parish receipts within the next three (3) years, and budget provision for such repayment has been so made. No further indebtedness may be incurred without the approval of the Bishop and Department of Finance.

Section 3. The Bishop and the Department of Finance must be notified before any short-term or long-term indebtedness is incurred.

Section 4. Providing that, in computing receipts under Section 2 hereof, amounts from or for endowments or from or by bequests, except income there from not specifically designated, and receipts for expenditures other than parochial shall not be included.

Section 5. Provided that under any circumstances for which approval is required, it shall be granted only when the payment of all indebtedness shall be provided for in a plan of amortization or other method of payment to be submitted to and approved by the same authority.