Exhibit 4.2
GRADUATED RATE REDEEMABLE CERTIFICATE
No. ________________ $________________
PIF/CORNERSTONE MINISTRIES INVESTMENTS, INC. ("ISSUER" OR "WE" AND RELATED
PRONOUNS) promises to pay to ___________________________________________________
or registered assigns ("you" or "holder"), the principal sum of ________________
________________________ Dollars ($__________).
Taxpayer I.D. Number: __________________ CUSIP Number:_________________.
Payment Dates:______________ and ________________.
Maturity Date:______________
Interest Rate: See below
This Certificate has a term of five years. This Certificate may be issued in any
dollar amount, with a minimum investment of $500. The amount and maturity date
of this Certificate is set when you purchase. You may redeem any amount of the
principal or interest on any anniversary date of your purchase, by giving us at
least ten business days' written notice of the amount you want redeemed. Unless
we receive notification of your intent to redeem within 10 business days of
maturity, your Certificate will automatically be renewed, on the terms under
which it was originally purchased, at the then prevailing interest rate for
similar certificates. We will publish on our web site [ ] the prevailing
interest rate for similar certificates and send you advance notice thereof.
This Certificate pays a graduated interest rate based on each year the
certificate remains invested. The rates are [7%] for the first year, [7.5%] for
the second year, [8%] for the third year, [8.5%] for the fourth year, and [9%]
for the fifth year, giving an overall average, if left invested for 5 years, of
[8%]. [Instruction: Bracketed numbers are subject to change and completion at
the time of issuance.] The graduated interest rate applicable to your
Certificate is set upon issuance and, if automatically renewed, will be reset
upon renewal to the prevailing interest rates or similar certificates.
You can choose, at the time of purchase, to have your interest on the
Certificate paid semi-annually or upon maturity. Monthly interest payments are
available on investments of $10,000 or more. Unpaid interest will be compounded
every six months from the issue date of the certificate
This Certificate begins to bear interest at the stated rate one business day
after we receive your funds. However, we will not issue the certificate or a
receipt for an investment until the check or other payment has cleared our bank.
Interest will be calculated on a 365-day year. Any payment due on a weekend or
on a nationally recognized bank holiday will be paid the next business day.
We will set interest rates for future certificates as market conditions warrant.
Certificates issued in the future may bear higher or lower interest rates than
the currently offered certificates, and may have different terms and conditions
than these certificates.
Certificates will normally be registered in book entry form and the investor
will receive only a written confirmation of their investment, and not an actual
certificate.
Certificate owners may not redeem them for cash before their maturity date,
except as described above.
Dated:_________________, 2001
__________________________, as Trustee, certifies that this is one of the
Certificates referred to in the Trust Indenture.
By:_________________________________
Name:
Title:
25
PIF/CORNERSTONE MINISTRIES
INVESTMENTS, INC.
By:_________________________________
Name:
Title:
[SEAL]
26
