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This article focuses on changes to church bond financing. Historically, many traditional denominational churches in the United States were funded with bond issues during the first half of the twentieth century. Originally, church bonds were sold only to church members. But some churches didn't have enough members who were interested or financially strong enough to purchase all the bonds needed to fully fund a project. In 1913 the concept of selling bonds to investors outside of the church community was born with a $30,000 bond issue for Holy Angels Church in West Bend, Wisconsin. These bonds were sold to investors by an outside underwriter. This approach was a major development in that it made the financing of larger church projects more feasible. Most corporate bond issues, whether for churches or for General Motors Corporation, were issued in physical certificate form. This meant that an investor who purchased a church bond would receive a “certificate” on parchment paper. The certificate would be stored in a safe place, usually a lock-box. Some bond certificates had interest payment coupons attached. The bond owner needed to “clip” the payment coupon and present it to the issuing bank or bond trustee to receive the interest payment.

The article discusses fixed income instruments which can earn steady returns at a low risk to the invested capital and a higher priority for payment than equity in case of liquidation. Retail bonds, which are issued by governments and corporations, earn a specific interest rate for a specified time and pay the principal at maturity. Subordinated debt papers issued by financial institutions have fixed terms and interest rates but are callable before maturity. Hybrids earn a predictable rate of return or dividend and provides options at maturity.

Comments on the plan of Louisiana governor Kathleen Blanco to stage a massive bond issue to finance construction work to bring the state's higher education institutions up to world-competition levels. Consultations with the business community; Louisiana State University working paper on the project; Similar programs in other states.

Reports that the Bank of New York has been chosen as trustee,paying agent and registrar for AT&T's global bond issue. Types of bonds issued by AT&T; AT&T's plan to use proceeds from bond issuance to repay commercial paper issued in connection with its acquisition of TCI and repurchase program.