57-15 - Proceedings by trustees or members for similar purposes, exception for certain transfers. - Virginia Statutes

§ 57-15. Proceedings by trustees or members for similar purposes, exceptionfor certain transfers.

A. The trustees of such a church diocese, congregation, or church orreligious denomination, or society or branch or division thereof, in whom isvested the legal title to such land held for any of the purposes mentioned in§ 57-7.1, may file their petition in the circuit court of the county or thecity wherein the land, or the greater part thereof held by them as trustees,lies, or before the judge of such court in vacation, asking leave to sell,encumber, extend encumbrances, improve, make a gift of, or exchange the land,or a part thereof, or to settle boundaries between adjoining property byagreement. Upon evidence being produced before the court that it is the wishof the congregation, or church or religious denomination or society, orbranch or division thereof, or the constituted authorities thereof havingjurisdiction in the premises, or of the governing body of any church diocese,to sell, exchange, encumber, extend encumbrances, make a gift of, or improvethe property or settle boundaries by agreement, the court shall make suchorder as may be proper, providing for the sale of such land, or a partthereof, or that the same may be exchanged, encumbered, improved, or given asa gift, or that encumbrances thereon be extended, and in case of sale for theproper investment of the proceeds or for the settlement of such boundaries byagreement.

When any such religious congregation has become extinct or has ceased tooccupy such property as a place of worship, so that it may be regarded asabandoned property, the petition may be filed either by the surviving trusteeor trustees, should there be any, or by any one or more members of suchcongregation, should there be any, or by the religious body which by the lawsof the church or denomination to which the congregation belongs has thecharge or custody of the property, or in which it may be vested by the lawsof such church or denomination. The court shall either (i) make a decree forthe sale of the property or the settlement of boundaries between adjoiningproperties by agreement, and the disposition of the proceeds in accordancewith the laws of the denomination and the printed acts of the church ordenomination issued by its authority, embodied in book or pamphlet form,shall be taken and regarded as the law and acts of such denomination orreligious body or (ii) at the request of the surviving trustees and afternotice in accordance with law to all necessary parties, make such order asmay be proper providing for the gift of such property to any willing local,state or federal entity or to a willing private, nonprofit organizationexempt from taxation under § 501 (c) (3) of the Internal Revenue Code,provided the court finds that (a) the property includes a historic buildingor landmark so designated by the Commonwealth and (b) the purpose of suchgift is historical preservation of the property.

The court may make such order as to the costs in all these proceedings as mayseem proper.

B. As an alternative to proceeding under subsection A, (i) the trustees of achurch or religious body that incorporate may transfer the title to the realand personal property of the church or religious body held by them to theincorporated church or religious body; and (ii) the trustees of a church orreligious body that do not incorporate under subdivision (i) hereof maytransfer title to the real and personal property of the church or religiousbody held by them to a corporation created pursuant to § 57-16.1 without, ineither instance, obtaining court permission if the transfer is authorized inaccordance with the church's or religious body's polity. If no petitionseeking to set such a transfer aside is filed within one year of therecordation of the trustees' deed transferring title to the real estate, orthe date of the transfer of any personal property, it shall be conclusivelypresumed that the transfer was made in accordance with the church's orreligious body's polity insofar as a good faith purchaser or lender isconcerned.

C. No transfer made pursuant to subsection A or B shall operate as a transferfor purposes of a provision contained in any note or deed of trust thatpurports to accelerate an indebtedness upon a transfer of title. Any suchtransfers of real estate shall be entitled to the exemptions set forth in §58.1-811.

D. Any transfer of real or personal property made pursuant to subsection B,and any similar transfer made pursuant to subsection A after April 23, 2002,shall be deemed to assign to the incorporated church or religious body, orthe corporation created pursuant to § 57-16.1, as the case may be, thebeneficial interest in every policy of insurance of every kind, type, anddescription, relating to the property transferred, contemporaneously with thetransfer, and the transferee shall have all of the rights and obligations ofthe transferor relating thereto.

(Code 1919, § 46; 1924, p. 535; 1938, p. 179; 1962, c. 516; 1974, c. 138;1983, c. 542; 1993, c. 370; 1998, c. 258; 2005, c. 772.)