                                 CODE OF VIRGINIA

PROCEEDINGS BY TRUSTEES OR MEMBERS FOR SIMILAR PURPOSES, EXCEPTION FOR CERTAIN
TRANSFERS (§ 57-15)

A. The trustees of such a church diocese, congregation, or church or religious
denomination, or society or branch or division thereof, in whom is vested the
legal title to such land held for any of the purposes mentioned in &#xA7;
57-7.1, may file their petition in the circuit court of the county or the city
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 by agreement. Upon
evidence being produced before the court that it is the wish of the
congregation, or church or religious denomination or society, or branch or
division thereof, or the constituted authorities thereof having jurisdiction in
the premises, or of the governing body of any church diocese, to sell, exchange,
encumber, extend encumbrances, make a gift of, or improve the property or settle
boundaries by agreement, the court shall make such order as may be proper,
providing for the sale of such land, or a part thereof, or that the same may be
exchanged, encumbered, improved, or given as a gift, or that encumbrances
thereon be extended, and in case of sale for the proper investment of the
proceeds or for the settlement of such boundaries by agreement.
			When any such religious congregation has become extinct or has ceased to
occupy such property as a place of worship, so that it may be regarded as
abandoned property, the petition may be filed either by the surviving trustee or
trustees, should there be any, or by any one or more members of such
congregation, should there be any, or by the religious body which by the laws of
the church or denomination to which the congregation belongs has the charge or
custody of the property, or in which it may be vested by the laws of such church
or denomination. The court shall either (i) make a decree for the sale of the
property or the settlement of boundaries between adjoining properties by
agreement, and the disposition of the proceeds in accordance with the laws of
the denomination and the printed acts of the church or denomination issued by
its authority, embodied in book or pamphlet form, shall be taken and regarded as
the law and acts of such denomination or religious body or (ii) at the request
of the surviving trustees and after notice in accordance with law to all
necessary parties, make such order as may be proper providing for the gift of
such property to any willing local, state or federal entity or to a willing
private, nonprofit organization exempt from taxation under &#xA7; 501(c) (3) of
the Internal Revenue Code, provided the court finds that (a) the property
includes a historic building or landmark so designated by the Commonwealth and
(b) the purpose of such gift is historical preservation of the property.
			The court may make such order as to the costs in all these proceedings as may
seem proper.

B. As an alternative to proceeding under subsection A, (i) the trustees of a
church or religious body that incorporate may transfer the title to the real and
personal property of the church or religious body held by them to the
incorporated church or religious body; and (ii) the trustees of a church or
religious body that do not incorporate under subdivision (i) hereof may transfer
title to the real and personal property of the church or religious body held by
them to a corporation created pursuant to &#xA7; 57-16.1 without, in either
instance, obtaining court permission if the transfer is authorized in accordance
with the church&#8217;s or religious body&#8217;s polity. If no petition seeking
to set such a transfer aside is filed within one year of the recordation of the
trustees&#8217; deed transferring title to the real estate, or the date of the
transfer of any personal property, it shall be conclusively presumed that the
transfer was made in accordance with the church&#8217;s or religious
body&#8217;s polity insofar as a good faith purchaser or lender is concerned.

C. No transfer made pursuant to subsection A or B shall operate as a transfer
for purposes of a provision contained in any note or deed of trust that purports
to accelerate an indebtedness upon a transfer of title. Any such transfers of
real estate shall be entitled to the exemptions set forth in &#xA7; 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, or the
corporation created pursuant to &#xA7; 57-16.1, as the case may be, the
beneficial interest in every policy of insurance of every kind, type, and
description, relating to the property transferred, contemporaneously with the
transfer, and the transferee shall have all of the rights and obligations of the
transferor relating thereto.

HISTORY: 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.