COVENANT OF GRACIOUS SEPARATION AND DISMISSAL BY AND BETWEEN THE PRESBYTERIAN CHURCH AT LIBERTY CORNER AND THE PRESBYTERY OF ELIZABETH

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1 COVENANT OF GRACIOUS SEPARATION AND DISMISSAL BY AND BETWEEN THE PRESBYTERIAN CHURCH AT LIBERTY CORNER AND THE PRESBYTERY OF ELIZABETH In recognition of our mutual desire to further the peace, unity, and purity of the larger church, the living body of Christ, and to fulfill our respective roles and responsibilities towards our Presbytery, Church and congregation, we, the Presbytery of Elizabeth, and the Presbyterian Church at Liberty Corner, enter into this Covenant of Gracious Separation and Dismissal ( Covenant ), recognizing the termination of our denominational affiliation, issuing this ecclesiastical dismissal, and covenanting as set forth below. The Presbytery of Elizabeth represents and warrants that is acting as an agent of Presbyterian Church (USA) with all necessary power and authority to bind the Presbyterian Church (USA) to the terms of this Covenant. The effective date of this Covenant is June 23, 2015, the date of the Stated Meeting of the Presbytery of Elizabeth at which this Covenant has been ratified. ARTICLE I In furtherance of this Covenant, the Presbytery of Elizabeth acknowledges and understands that the Presbyterian Church at Liberty Corner as a congregation has sought and requested dismissal from the Presbytery of Elizabeth, in order to conclude and terminate its relationship as a congregation within the Presbyterian Church (USA). The Presbytery of Elizabeth further acknowledges and understands that the Presbyterian Church at Liberty Corner, upon dismissal from the Presbytery of Elizabeth and the Presbyterian Church (USA), will become a member congregation of the Reformed body known as ECO: A Covenant Order of Evangelical Presbyterians. Pursuant to this acknowledgement and understanding, and by ratification of this Covenant, the Presbytery of Elizabeth, for itself as well as on behalf of and as a council of the Presbyterian Church (USA), in accordance with the Presbytery of Elizabeth s policy on dismissal entitled The Presbytery of Elizabeth Process for Use When a Church Wishes to Disaffiliate With the Presbyterian Church (USA), Second Edition, Revised by Cabinet: 11/8/11, hereby dismisses the Presbyterian Church at Liberty Corner as a congregation within the Presbyterian Church (USA) and a member congregation of the Presbytery of Elizabeth to the Reformed body known as ECO: A Covenant Order of Evangelical Presbyterians.

2 ARTICLE II Based upon its discernment of its mission, the Presbytery of Elizabeth, for itself as well as on behalf of and as a council of Presbyterian Church (USA) (collectively, the Presbytery of Elizabeth ), acknowledges and agrees that for purposes of the civil, statutory, and common law of the United States and the State of New Jersey, the ecclesiastical dismissal of the Presbyterian Church at Liberty Corner as a congregation within the Presbytery of Elizabeth is intended to apply to any and all legal, equitable and other rights and obligations of the Presbyterian Church at Liberty Corner and the Presbytery of Elizabeth, whether or not expressly stated in this Covenant. ARTICLE III Except for the conditional legal right to seek additional compensation set forth in the second paragraph of this Article III, the Presbytery of Elizabeth relinquishes any legal, equitable or other claim to a right, title or interest in or upon all the real and personal property of the Presbyterian Church at Liberty Corner, and any beneficial interest therein. The real and personal property released includes all real and personal property owned by Presbyterian Church at Liberty Corner, including but not limited to the church building complex, cemetery, manse, and ancillary site improvements. As title to the real property is currently in the name of the Presbyterian Church at Liberty Corner, formal transfer of Title is not necessary; although upon request, a separate release or other document shall be given by the Presbytery of Elizabeth to evidence the release of any right, title, and interest in real or personal property that may be asserted by or on behalf of the Presbytery of Elizabeth. Any such separate release or other document shall be prepared by the Presbyterian Church at Liberty Corner at its own cost, and presented to the Presbytery of Elizabeth at no cost to the Presbytery of Elizabeth, and the Presbyterian Church at Liberty Corner shall be responsible for any recording costs for the document. In the event that on or before June 23, 2020, the Presbyterian Church at Liberty Corner terminates its affiliation with a denomination or ecclesiastical body adhering to Reformed Theology, whether currently existing or formed after the effective date of this Covenant, and becomes an independent congregation, the Presbytery of Elizabeth has the legal right to seek additional financial compensation from the Presbyterian Church at Liberty Corner above the payment terms set forth below in Articles V and VI, in an amount that takes into consideration the appraised value of the real property of the Presbyterian Church at Liberty Corner as set forth in the appraisal as of April 27, 2015 by Value Research Group, LLC. ARTICLE IV The Presbyterian Church at Liberty Corner shall pay to the Presbytery of Elizabeth the balance of its per capita payments for calendar years 2014 and

3 in the amount of $21,936.18, as final payment of all per capita payments that may be deemed payable to the Presbytery of Elizabeth. Payments will be made on or before June ARTICLE V The Presbyterian Church at Liberty Corner shall pay to the Presbytery of Elizabeth five equal annual installments of $29, commencing on June 23, The Presbyterian Church at Liberty Corner may, in its sole discretion and without penalty, prepay any or all of the remaining annual installments at any time. ARTICLE VI The Presbytery of Elizabeth shall provide a list of no less than five proposed mission partners to the Presbyterian Church at Liberty Corner, and the Presbyterian Church at Liberty Corner shall pay the aggregate annual amount of $4, for a period of five years commencing on June 23, 2015, to one or more of the listed mission partners, selected in the sole discretion of the Presbyterian Church at Liberty Corner. ARTICLE VII The Presbyterian Church at Liberty Corner accepts responsibility for payment of reasonable costs and expenses paid by the Presbytery of Elizabeth in connection with the process of dismissal, including legal fees to review documents relating to this dismissal. ARTICLE VIII Any member of the Presbyterian Church at Liberty Corner who wishes to remain as a member of the Presbyterian Church (USA) shall be under the care of the Presbytery of Elizabeth. ARTICLE IX The Presbyterian Church at Liberty Corner shall commit to sharing a time of worship with the Presbytery of Elizabeth shortly after the dismissal process is completed, whereby we shall celebrate the ministry we have shared, and whereby we shall hold up our common love for Jesus Christ. ARTICLE X 3

4 The pastors serving at the Presbyterian Church at Liberty Corner, Rev. Donald Feuerbach and Rev. Anne K. Havrilla, having been accepted as members of another Reformed body ECO: A Covenant Order of Evangelical Presbyterians - shall be considered to have renounced the jurisdiction of the Presbyterian Church (USA). Their membership in the Presbytery of Elizabeth as teaching elders in the Presbyterian Church (USA) shall conclude and terminate as of the effective date of this Covenant ARTICLE XI The Presbyterian Church at Liberty Corner agrees to transfer to the Stated Clerk of the Presbytery all original copies of the church s Session and congregation minutes, the church registers, and other such ecclesiastical records through the date of dismissal. The Presbyterian Church at Liberty Corner may elect to pay for digitization of these records prior to the transfer of the records and documents. ARTICLE XII The Presbytery of Elizabeth and the Presbyterian Church at Liberty Corner agree and mutually represent that this Contract has been reached in good faith, after due diligence and discernment. The Presbytery of Elizabeth, for its part, and the Presbyterian Church at Liberty Corner, for its part, each represent that it has the appropriate authority to enter into this Covenant, and that the other has the legal right to rely upon such representations of authority. No subsequent ecclesiastical challenge of right or propriety shall annul this Covenant, or abrogate the legal rights of the other party derived from this Covenant. Should any provision of this Covenant be challenged in a court of law and found to be unenforceable, the remaining provisions shall survive and remain in full force and effect. This serves as a written Covenant Agreement between the Presbytery of Elizabeth and the Presbyterian Church at Liberty Corner, and is understood to be binding on any succeeding governing body. This Agreement represents the entire understanding between the parties and may not be modified except in a writing signed by both parties. No prior oral statements or contemporaneous negotiations or understandings shall be of any force and effect. We pray that each other go forth in peace, honoring Christ. Attested: Presbyterian Church at Liberty Corner CLERK OF SESSION 4

5 PRESBYTERY OF ELIZABETH MODERATOR STATED CLERK 5

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