Asset Protection Agreement FAQ
The Asset Protection Agreement exists to ensure that all of the property and assets belonging to a Sigma Phi Epsilon chapter and its Alumni and Volunteer Corporation (AVC) are:
- Held in trust for that specific chapter of Sigma Phi Epsilon
- Preserved for the chapter's future use
- Managed and controlled by the local AVC when possible
No, there is no requirement to transfer assets when a chapter’s charter is surrendered or revoked. The AVC retains sole power to decide who manages its assets, including any and all property as long as it:
- Maintains a valid corporation in good standing according to the laws of its state
- Holds all assets in trust for and acts in the best interests of that particular SigEp chapter Should the AVC elect not to assume these obligations, the agreement permits the National Fraternity to assume custody of the assets. It requires that the National Fraternity hold these assets in trust for that chapter.
The Asset Protection Agreement places no new restrictions on the AVC. It formalizes and codifies the responsibilities of an AVC as currently contained in the Grand Chapter Bylaws, specifically:
- The AVC must act as a fiduciary for the undergraduate chapter
- All assets owned by the AVC must be used for benefit of undergraduate chapter
- The AVC must be incorporated and not suspended, dissolved, or deactivated.
The duties of the National Fraternity are outlined in Article V Section 23-28 of the Grand Chapter bylaws. To summarize, it depends on the avenue selected by the AVC with regards to its assets:
- If the National Fraternity holds assets in trust, it shall:
a. Hold assets in the Chapter Continuation Fund for twenty-one (21) years
b. Provide annual accounting of the income and expenses of the Trust Assets to the AVC
- If the AVC chooses to hold assets in trust, it shall:
a. Monitor the annual accounting of the Trust Assets as provided by the AVC.
b. Ensure assets are held in trust for the reactivation and housing of the undergraduate chapter.
- AVC Directors vote to accept the agreement and record the vote in AVC meeting minutes
- AVC amends its bylaws to include Grand Chapter Bylaw trust language.
- AVC President executes the Asset Protection Agreement by signing and notarizing the document.
- AVC returns the agreement via mail or email to:
Sigma Phi Epsilon Fraternity
Attn: Chad Stegemiller
310 South Arthur Ashe Boulevard
Richmond, VA 23220
- Executive Director Brian Warren executes on behalf of the National Fraternity
- Copies of the executed document are returned to the AVC and filed at SigEp Headquarters
- Optional: AVC records the agreement in local housing records if property is involved
Have Additional Questions? Need More Information?
- Contact SigEp Director of Risk Management Chad Stegemiller or call 804.418.0945
- Consult local legal counsel with experience in real estate and/or corporate law.
Additional Documentation for Review
- 2007 Grand Chapter Conclave Resolution 15 "Individual Chapter Asset Ownership”
- Grand Chapter Bylaws Article V. Section 23 – 28
- Asset Protection Agreement