
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: WEDNESDAY, March 25, 1992                   TAG: 9203250348
SECTION: VIRGINIA                    PAGE: B3   EDITION: NEW RIVER VALLOEY 
SOURCE: Associated Press
DATELINE: LYNCHBURG                                LENGTH: Medium

FALWELL USED CHURCH AS COLLATERAL

Since 1981, the Rev. Jerry Falwell's ministries have used his Thomas Road Baptist Church as collateral 11 times to secure $34.5 million in loans and bond issues, a newspaper reported Tuesday.

At least $17.5 million in loans is outstanding, the Lynchburg News & Advance said.

The church property was assessed by the city last year at $5.2 million.

Most of the money was used to build facilities on the Liberty University campus, said Mark DeMoss, a ministry spokesman. He also said he believes the congregation approved each of the deeds of trust.

"Certainly the lion's share was for Liberty in one way or another," DeMoss said, "although in a number of cases Thomas Road benefited from the proceeds."

The largest of the outstanding loans, for $8.5 million, was taken out by Old Time Gospel Hour and church trustees three years ago, according to records in Lynchburg Circuit Court. That loan was funded by Lincoln Savings & Loan, the most prominent and costly failure of the S&L scandal.

A deed of trust on Thomas Road Baptist Church and Lynchburg Christian Academy was transferred to Charles Keating Jr.'s Lincoln Savings & Loan three months before the government seized the California thrift in April 1989.

The loan demands weekly payments of $24,000 from the official borrower, Old Time Gospel Hour, until the year 2004. Old Time drastically has scaled back operations since securing the loan and is financially shaky. A statement by the ministry said loan payments are made by Old Time and not from Thomas Road Baptist Church weekly collections.

The deed of trust held by Lincoln S&L was taken over by the government's Resolution Trust Corp., set up to liquidate failed S&Ls.

From 1980 to 1990, Thomas Road Baptist Church, often with Old Time Gospel Hour, got loans or bond issues through various sources totaling $72.3 million, according to a title search conducted for the newspaper. The church building was used as collateral to secure loans or bond issues 11 times - totaling $34.5 million. The rest of the loans were secured by other ministry property, including Liberty University's campus.

Five outstanding liens against the church total $19.5 million, according to public records. A ministry statement said three liens are outstanding, totaling $17.5 million. Two others were paid in full, the statement said.

by CNB