A portion of the Article
Financial Walls Closing In On Church(Randy & Paula White)Monday, November 10, 2008 5:36 AM
TAMPA - The future of Without Walls International Church is in
question now that a credit union wants to foreclose on the
megaministry.
The church defaulted on a $1 million loan due in August, prompting
the California-based Evangelical Christian Credit Union to file
foreclosure proceedings Tuesday.
The filing also includes a $12 million loan made in December 2003,
when Without Walls was looking to expand its ministry headquartered
at 2511 N. Grady Ave. On Thursday, the credit union initiated a
similar foreclosure proceeding involving two additional loans for the
church's branch in Lakeland. The credit union declined to release
details of those loans.
Without Walls issued a statement Thursday that said it has done its
best to meet ministerial goals and financial obligations in the wake
of the economic downturn and adverse publicity.
"Since the lender knew we had a sales contract for the sale of
certain assets that would have covered our obligations to it, the
church was shocked to receive notice of foreclosure. "
Credit union spokesman Jac La Tour said the lender filed for
foreclosure after months of trying to negotiate a more affordable
loan agreement with the church.
An agreement was reached, La Tour said Thursday, but Randy White, the
senior pastor, never signed it.
The $1 million loan should have been paid off in August. When the
church failed to do that, the credit union immediately sought
repayment of the larger loan, due in January, according to the court
filing.
Touted in 2004 by Church Growth Today as the nation's second fastest-
growing Christian congregation, the ministry took in as much as $40
million a year. But it has faced many hurdles in the past couple
years. Among them: an ongoing U.S. Senate inquiry into its finances;
the divorce of cofounders Randy and Paula White; and a dramatic drop
in attendance.
For months, there have been signs of financial struggles at Without
Walls.
Church accountant Camillo Gargano wrote in the Aug. 28 letter that
the ministry was in "turmoil."
Management didn't seem bothered by the financial problems, and
used "bullying, excessive force and verbal abuse as a management
style," Gargano wrote.
http://www2. tbo.com/content/ 2008/nov/ 06/062254/ tampas-without- walls-
church-faces- foreclosure/ news-breaking/
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