THE BOOK OF CONSTITUTIONS AND ORDINATIONS
OF THE ORDER OF PREACHERS (LCO)

Ordinations are marked with an asterisk. ( * )

FOURTH SECTION

ON ECONOMIC ADMINISTRATION
First Section: General Norms:
Second Section: On Government Itself:
Third Section: On Elections:
Fourth Section: On Economic Administration:
Chapters:
  1. on the principles of administration; §537
  2. on administrative procedure; §550
  3. on administration in particular. §576

537.
Proper administration demands that each and every one of the brethren share in the responsibility for the temporal goods of the community even in the way in which they use them. This implies a genuine relationship to poverty of which it can be called a practical exercise. Officials, however, shall administer economic affairs with diligent care as faithful and prudent servants in the service of charity.

Chapter XXIII

ON THE PRINCIPLES OF ECONOMIC ADMINISTRATION

Art. I -- On the Purpose of Administration

538. I.   Economic administration deals principally with the material things which are necessary for the daily life of the brethren and their apostolate; it then extends to the buildings in which the community lives and prays, their furnishings and their maintenance. In like manner, prudent administration must also provide in due time a capital reserve for emergencies.

II.   The primary source of all these goods is the diligent work of the brethren and moderation in their use and in expenditures even though we accept the donations of benefactors with a grateful spirit.

* 539. I.   Since the inordinate accumulation of goods must not be permitted, in the event that in any convent immovable, movable, or capital goods shall be truly superfluous, it is the duty of a provincial chapter to dispose of them, having consulted the council and chapter of the convent.

II.   These goods shall be applied to the needs of one's own province, or, after consulting the Master of the Order, shall be offered to the Order or to a more needy province.

Art. II -- On the Subject (or Agent)
of Administration

540. Not only the Order, but also each province and convent can acquire, possess, and administer temporal goods.
* 541. In this section on economic administration, the word Order is taken for the juridical person having, under the immediate jurisdiction of the Master of the Order, convents and institutes equivalent to a province.
542. I.   Institutes and projects, although they may belong to a convent, or a province, or the Order, and are under the jurisdiction of the respective superior, can enjoy certain rights according to the statute of administration of a province or of the Order.

II.   In the same manner, their administration can be entrusted to designated officials whether of a convent, or of a province, or of the Order, who shall be considered as delegated administrators.

III.   Within the limits of the statute of administration of a province or of the Order, superiors can appoint an individual brother to complete a particular project.

* 543. The Master of the Order and a prior provincial can have a separate personal account for personal and special expenses.
544. Besides superiors and syndics, delegated or appointed administrators, if they have the required approval, can also validly incur expenses and perform juridical acts of ordinary or extraordinary administration.
545. I.   If a convent, or a province, or the Order, through its superiors and ordinary or delegated administrators shall have contracted debts and obligations within the limits of their office, the moral person itself is bound to answer for them.

II.   In the same way, if an appointed administrator shall have contracted debts and obligations, that moral person shall answer for them in whose name the transaction took place.

III.   If a brother shall have contracted debts and obligations without any permission of a superior, he himself must answer for them, but not the Order or a province or a convent.

Art. III -- On the Object of Administration,
or on the Right to Goods

546. Unless otherwise determined by a provincial chapter, the following belong to a convent:
1. whatever the brothers assigned there acquire by their work and industry, either in respect to the individual or to the convent as well as their personal compensations of any kind whatsoever, saving nn. 174 and 200,V;

2. gifts made in favor of the convent;

3. all the goods legitimately acquired in the course of time, whether they are immovable, or movable, or capital, and their income.
* 547. When a convent has been suppressed, its goods revert to the province, the requirements of law having been observed.
548. Unless otherwise determined by a provincial chapter, the following belong to a province:
1. the income of the work of the prior provincial;

2. gifts made in favor of the province;

3. gifts made for the education of candidates, novices, and students, as well as for the support of the missions or for other projects which depend on the direction of the province;

4. the income from projects and institutes whose expenses the province has assumed;

5. the income from the work of brethren assigned or working outside their own province, in accord with n.600;

6. inherited goods of any kind whatsoever of the sons of the province as well as free legacies, that is, which are left to the brethren without any intention of the benefactor manifested previously in writing or before witnesses, saving n.200;

7. immovable, movable, or capital goods acquired by a province in the course of time, and their income;

8. taxes imposed on the convents by the provincial chapters.
549. To the Order belong:
1. immovable, movable, and capital goods, both of the Order and of institutes immediately subject to the Master of the Order, and their income;

2. the income of the work of the brethren in those institutes and of those working in the general curia, as well as gifts made to them without any special condition, saving n.600;

3. taxes imposed on provinces by a general chapter;

4. taxes on convents or institutes immediately subject to the Master of the Order, imposed by him with his council;

5. all other income coming in favor of the Order.

Chapter XXIV

ON ADMINISTRATIVE PROCEDURE

Art. I -- General Rules

550. Temporal goods, both immovable and movable, must be administered according to the norms of ecclesiastical law and our own legislation, as well as according to the special statutes on administration of a province or of the Order.
551. While observing ecclesiastical legislation and our own, all the conditions required by civil law on economic administration shall be observed exactly.
* 552. A province, in accord with its needs, must have an administrative statute which shall be part of its general statute in which everything pertaining to the administration of temporal goods shall be determined more precisely. This statute must be included in the acts of a provincial chapter and shall not be changed easily in substance.
* 553. In accord with the purpose of n.552, the Order shall have its own administrative statute approved by the Master of the Order with his council.
* 554. By ecclesiastical law, the Order, a province, and a convent have their own juridical personality. However, when this is not recognized by the State, they must acquire some civil personality according to the determination of the statute of a province or of the Order.
* 555. I.   The goods of societies or associations which assume civil legal personality in behalf of a convent, a province, or the Order before the State are really our goods and must be treated as such.

II.   Therefore, the legal representative of the civil person which acts in behalf of a convent, or a province, or of the Order, or of any institution belonging to them can take only those actions which a competent superior or administrator can take according to our law, and he is obliged strictly to execute them not according to his own judgment but according to the direction of the competent official.

III.   The same holds true for other administrators and for each associate who by voting or in any other way shares in administration. For all these, juridical precautions shall be taken lest any harm should arise from the death of a brother or from any other cause.

IV.   If he is a layman, the rights and obligations of a legal representative shall be determined in a special contract.

* 556. While maintaining the radical right of convents to administer their own goods, provinces can decide in their economic statute on partial centralization to bring about better and more efficient administration.

Art. II -- On Organizing Administration

557. While maintaining n. 543, each brother, even if he is a superior, is obliged to hand over to the syndic moneys or compensations of any kind so that they can be recorded accurately in the account books and, saving the rights of any third party, that they can be added to the goods of the community.
* 558. All moneys and capital goods of any kind, all income and expenditures shall be recorded accurately in account books. Debits or any other financial obligations, as well as claims or credits, shall also be openly recorded in them.
* 559. I.   Every syndic or administrator shall have secure and well-ordered files. At the end of his term of office, he shall hand over all the records to his successor.

II.   Administrators appointed for a particular project shall hand over all the records to the proper syndic once it has been completed.

* 560. I.   Moneys shall be deposited only in banks whose security is established beyond doubt, and, in accord with the purpose of n.555, they shall be deposited in the name of the respective moral person or institute to which they belong.

II.   The bank shall be chosen by the administrator himself with the consent of the superior.

III.   Moneys deposited in banks can be withdrawn only by checks signed at least by the superior and the administrator, together or separately, according to the statute of administration.

* 561. No brother shall be permitted to have a personal account in a bank except with the permission of his superior. In this case, another brother designated by the superior must also have the right to withdraw money. (MC-321; C-193)

Art. III -- On Financial Reporting

562. Every brother who has charge of the administration of goods ex officio or by appointment is obliged to give a report on his administration.
* 563. I.   Every month, the syndic of a convent shall give a report before the council on all revenues and expenses, debits and credits.

II.   Every year, the superior of a house, the conventual prior, the vicar provincial, and the regional prior shall send to the prior provincial an accurate and complete report prepared by the syndic in which a budget for the following year is included, made after consultation with the conventual chapter if the provincial chapter shall have determined this and approved by council of the convent or the vicariate; copies of this budget shall be kept in the files of each syndic. (O-282)

* 564. The annual reports of each convent and institute shall be submitted to the council of the province for examination.
* 565. A province shall have a standard form according to which syndics of convents and permanent administrators are obliged to present their economic reports to their respective superiors and councils.
* 566. I.   Every year, the syndic of the province, vice-province and general vicariate shall present to his respective council an accurate and complete report on the revenues and expenses, debits and credits of the same entity, on the transactions he has made, and on the economic condition of the entity; he shall also propose a budget or estimate for the following year. All these reports must be approved by the respective council. Furthermore, the syndic must submit his economic report to the superior of the entity each month. (C-194; B-287)

II.   In a similar fashion a regional prior and a vicar provincial shall send their prior provincial an accurate report of the economic status approved by their respective council in the same way as is stated in paragraph I.   (C-194; B-287)

* 567. I.   Each year, a prior provincial, prior vice-provincial, and a vicar general should send their economic reports directly to the Master of the Order. (MC-322; Tech change C-199)

II.   Furthermore, each year, a prior provincial, prior vice-provincial, and a vicar general should send the Master of the Order a response to the questionnaire concerning major economic matters prepared by the syndic of the Order and approved by the master of the Order. (C-200; B-288)

* 568. I.   Delegated and appointed administrators must present a report according to the norms established for syndics of a convent or of a province.

II.   Furthermore, when a project has been completed, a delegated administrator shall make a report to the delegating superior with his council.

* 569. The syndic of a province or of the Order shall present a report on his administration to the respective chapter.
* 570. The syndic of the Order shall present to the Master of the Order and his council a report in the manner established for the syndic of a province.
* 571. Superiors of convents and moderators of institutes under the immediate jurisdiction of the Master of the Order shall send accurate reports approved by their respective councils to the Master of the Order in the same manner as stated above in nn. 563 and 565.
* 572. A prior provincial and the Master of the Order shall present a report of their personal administration to their respective chapters.

Art. IV -- On Taxes

* 573. I.   Taxes shall be imposed by the authority of either a general or a provincial chapter according to the manner determined by them and shall be computed within the ordinary expenses of both convents and provinces.

II.   The Master of the Order with his council can impose taxes on the convents under his immediate jurisdiction.

* 574. I.   Taxes shall be devoted to fulfilling the ordinary budget.

II.   They shall be imposed according to the income of each convent or province while maintaining equity and proportion.

* 575. I.   Projects which require a greater amount of money shall not depend on ordinary contributions but must be placed in an extraordinary budget. The means necessary for accomplishing such transactions shall be projected in long-range planning, treated below in n.585 and the following.

II.   Concerning the expenses of a general chapter, the following must be kept in mind:

1. personal expenses, such as pertain to travel and lodging, shall be borne by each province;

2. general expenses for a chapter shall be paid proportionately by the general curia and by each province according to the manner established in the chapter itself;

3. six months before the convocation of a general chapter, the syndic of the Order and the syndic of the convent where the chapter is to be held shall prepare a budget of the chapter expenses to be submitted to the Master of the Order with his council. Afterwards, it shall be sent to each province for consultation.

Chapter XXV

ON ADMINISTRATION IN PARTICULAR

Art. I -- On Mutual Collaboration between Convents,
a Province, and the Order

* 576. So that a spirit of poverty and of work may be fostered with fraternal charity and so that everyone's responsibility toward the community may be increased, information shall be given to the chapter of a convent on their own economic condition.
* 577. Furthermore, in a manner determined by the prior provincial, the syndic of a province shall give information to the convents on the economic condition of the province.
* 578. At the end of the business year, with the approval of the Master of the Order, the syndic of the Order shall send to every prior provincial an informative report on the economic condition of the Order for the previous year in which shall be included particularly any extraordinary budget.
* 579. According to the determination of the economic statute, the syndic of a province shall collaborate with all the syndics of the convents to give mutual advice to each other and to consider the problems of administration.
* 580. It pertains to the syndic of the Order to examine the economic administration of all the convents and institutes immediately subject to the Master of the Order according to the determination of the Master of the Order.
* 581. I.   A province must have a council for economic matters composed of the syndic of the province and at least two competent brothers whose chair is appointed by the provincial chapter. To this council may be added, if it seems suitable, trustworthy lay experts. ( B-289)

II.   It will be the duty of the economic council not only to examine all the reports to be submitted to the provincial chapter or even to the provincial council but also to offer help to the provincial council with its consultative vote when treating economic matters of major importance such as the budget, taxes, and long-range plans.

III.   The norms by which the council for economic matters is governed shall be incorporated in the statute of administration.

* 582. There shall also be a council for economic matters in the Order whose chairman ex officio is the syndic of the Order and which exercises the same functions as the economic council of a province.

Art. II -- On Investments

* 583. I.   While preserving the right of the owner even regarding income to be received, if it shall have seemed advantageous to a provincial chapter, financial investments, whether taken narrowly or widely, shall not be made by individual convents but jointly for the whole province.

II.   The council of the province shall give general rules concerning investments and their unavoidable fluctuations so that the syndic of the province, in collaboration with the economic council and after consulting independent experts, can transact business at an opportune time.

* 584. To make and change investments strictly so called, the consent of the provincial council suffices, the prescriptions of common law being observed.

Art. III -- On Planning

* 585. I.   Since major projects can hardly be undertaken by individual convents or institutes from their own resources and since their completion in most cases requires the united resources of all the members and communities of a province, there must be long-range planning. This planning includes an organization of projects so that one is undertaken after another according to a priority of need and feasibility in such a way that everyone can mutually help one another in sequence.

II.   Projects of this kind are not only buildings to be constructed or restored or works to be inaugurated which require a great amount of money only once but also those undertakings for which annual subsidies must be assigned.

* 586. I.   Planning shall be done by a provincial chapter after obtaining a consultative vote of the council for economic matters.

II.   In planning for the needs of a province or of a particular convent, the rights of convents over their temporal goods, not excluding the transfer or alienation of goods, can be restricted but always after consulting the chapter of the convent concerned.

* 587. Before undertaking any major project which requires money whether for its beginning or its future maintenance, it must be clearly indicated in projecting expenses from what source the required money is to be taken.
* 588. I.   No building shall be constructed unless the considered opinion of experts has been previously obtained on the location and other requirements and before a plan of the whole building along with an estimate of the expenses shall be approved by the provincial council after consultation with the council on economic matters. Furthermore, it shall be constructed in such a way that it does not need excessive expenses for its ordinary maintenance.

II.   Buildings must be constructed in the manner in which they have been approved by the provincial council, and no one is permitted to deviate on his own authority from the plan as it has been approved.

* 589. What has been said about constructing buildings holds true, with appropriate modifications, for restoration and extensive repairs as well as for other matters of major importance.

Art. IV -- On the Limitation of Expenses

* 590. It is the duty of a provincial chapter to determine the amount beyond which neither the superior of a convent alone or with his council nor the prior provincial without his council can spend or give permission for spending.
* 591. Major projects which require no expenses on the part of the Order because they will be paid with the financial assistance of outsiders also need due consent in accord with n.590 and the preceding article.
* 592. It is the duty of a general chapter to determine the amount beyond which the Master of the Order cannot give permission for spending without his council.

Art. V -- On Mass Stipends

593. The brethren must give the Mass stipends they have received to the major sacristan, who will record them accurately in a special book, indicating the date they were received, the number, the intention, conditions, the amount offered, and the date they were celebrated.
* 594. The major sacristan shall have a special account for keeping the stipends of Masses to be celebrated and only after their celebration may the money be transferred to the common account. Every month he shall present a report to the conventual council on the Masses celebrated and to be celebrated.
* 595. Stipends for Masses which cannot be celebrated in due time by the priests of a convent shall be sent to the prior provincial, and those which are in abundance in the province shall be sent to the Master of the Order.

Art. VI -- On Pious Foundations
and Restricted Gifts

* 596. I.   Only moral persons in the Order and not individual brothers are permitted, with the consent of their respective councils, to accept pious foundations or other gifts with prolonged and burdensome obligations.

II.   Furthermore, every acceptance of a burdensome obligation requires the consent of the provincial council, and those which impose a prolonged obligation shall not be accepted easily.

* 597. Conditions and obligations shall be recorded in writing in duplicate copies: one copy shall be preserved in the archives of the province and the other in the convent concerned.

Art. VII -- On Some Particular Cases

598. Needed money shall be given by their superior to the brethren when traveling. After the completion of the journey they shall give him a report on that money and any other received while outside the house.
* 599. The brethren who are guests in a convent of the Order shall pay a suitable amount for lodging or not according to the legitimate custom of the province or of the convent.
* 600. If brothers live or work in another province, whether they are assigned to it or not, the priors provincial concerned shall by mutual consent or by contract agree on their economic situation. They shall determine what expenses incurred on their behalf must be repaid to the province in which they are living or, on the other hand, what compensation for work they have done must be remitted to the province from which they came.
* 601. When brothers permanently exercise some office or perform work in institutions, projects, or other establishments of this kind which do not belong to convents or provinces of the Order, the prior provincial shall be careful to enter a contract in which all the conditions are accurately established.

Art. VIII -- On Publishing Books

* 602. Whenever a book is to be published, a written contract must be made.
* 603. When possible, all contracts shall be made in the name of the moral person recognized by law, and one copy, moreover, shall be kept in the file of the syndic of the province or of the Order respectively.
* 604. In the economic statute, more precise determinations shall be made for publishing books such as: on the expenses to be incurred, on the conditions to be attached, and on the disposal of the author's earnings even after his death.
* 605. A province shall devote attention to the publication of books of valuable scientific endeavor even though the cost may exceed anticipated profit.

Art. IX -- On Contracts

606. All contracts of any importance on economic matters shall be made in writing according to the norms established in the administrative statute of the province.
607. I.   Debts and financial obligations shall not be allowed to be contracted unless it is established with certainty that interest on the debt can be paid from regular income, and the principal can be repaid by amortization within not too long a period of time.

II.   In petitions for obtaining consent to contract debts or obligations, all other debts and obligations with which the contracting party is burdened to that date without any exception must be declared; otherwise the permission obtained is invalid.

III.   Contracts for debts or obligations to be incurred shall be submitted to the examination of the economic council.

* 608. I.   To alienate immovable or movable property of particular value it is also required that the economic council of the province examine whether there is just cause for this, make a written evaluation of the matter and indicate a fair price to be obtained after consulting lay experts as well if that is necessary.

II.   Contracts for renting generally cannot be made without the previous consultation of the economic council. Furthermore, a superior cannot make a rental contract without the consent of his council.

* 609. I.   Contracts of alienation, rental and, indeed, for an agreed annual payment, or of debts and obligations to be incurred, are subject to the rules on the limitation of expenses mentioned in nn. 590 and 592.

II.   In these contracts, however, the prior provincial with his council can give consent up to the highest amount defined by the Holy See for each region (see Can. 638,3). Otherwise, recourse to the Master of the Order is required.

Art. X -- On Insurance

* 610. All convents, provinces, and the Order must obtain necessary insurance.
* 611. In countries where medical insurance is mandatory, or insurance for old age, for accidents, for physical disability, for personal injury liability, etc., the brethren shall not fail to obtain such insurance.
* 612. It is absolutely necessary to obtain insurance for injuries that might be inflicted on outsiders. It is not permissible for any brother to drive motor vehicles unless such insurance shall be maintained.
* 613. Required insurance and the ways in which it shall be obtained shall be determined in the administrative statute of the province.

Art. XI -- On Lay Employees

* 614. Superiors must pay employees a just wage, and civil laws, especially social laws concerning insurance, taxes, and other matters of this kind, must be strictly observed.
* 615. In areas where the social laws referred to above are lacking, superiors must provide for the security of employees according to social justice.

Art. XII -- On the Administration of
the Goods of Externs

* 616. No one, not even a superior, shall accept deposits of money of persons outside the Order, or certificates having monetary value, or precious objects except for a grave and urgent reason and with the consent of the council.
617. I.   No brother shall take any part in the administration of goods belonging to people outside the Order, whether they are physical or moral persons, except in an exceptional case and then with the permission of the prior provincial.

II.   If an obligation of presenting a report is attached to this administration, then permission should be granted by the prior provincial with greater reluctance and strictly for the time required.

Art. XIII -- On Charitable Gifts

618. With the superior's consent, a community, from the goods which divine Providence has bestowed on it, "should contribute willingly for the other needs of the Church and for the support of the poor, whom all religious should love in the heart of Christ."(1)
* 619. Since the brethren are debtors to all in Christ, they should develop a spirit of liberality which is recognized in compassion and not in the size of gifts. Let those who are moved by charity to act generously remember to observe the order of charity and never forget the communities of the brethren who suffer need.


1. Decree Perfectae Caritatis, n. 13


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