

Philmont Scout Ranch is a vast and spectacular piece of property in New Mexico. It is owned by the Boy Scouts of America (BSA). But the financially strapped organization took out a large mortgage on the property last fall.
The BSA says it has no plans to sell the property. The land is offered as collateral in the big loan. Collateral is the term used for something of value in a financial lending situation. The BSA needs to borrow some money. It owns property that has great value. So the BSA says to a bank or other lender, “Please loan us money. We will pay you back. But if we don’t, this property will become yours in exchange.” The land backs up the promise of repayment. A loan issued with collateral backing it up is called a mortgage.
Officials with the Boy Scouts believe this to be a wise way to help the organization through what it hopes will be a temporary rough spot. But the decision dismayed a member of Philmont’s oversight committee. He says it violates the agreement made when the land was donated to the Scouts in 1938.
Mark Stinnett is a lawyer. He’s also the member of the committee that objected to the mortgage deal. “The first point of the Scout Law is ‘A Scout is trustworthy,’” Stinnett wrote in his complaint. “I am distressed beyond words at learning that our leaders apparently have not been.”
He says the $446 million in debt the Scouts received from the agreement with J.P. Morgan Chase puts the property at risk of loss. When it was originally given by wealthy oilman Waite Phillips, it was transferred as a “restricted asset,” Stinnett claims. That means that BSA is not free to transfer it to anyone else.
The BSA says operations at Philmont “continue uninterrupted, and we are committed to ensuring that the property will continue to serve and benefit the Scouting community for years to come.” But a spokesperson defended the mortgage as the means to meet that commitment: “In the face of rising insurance costs, it was necessary for the BSA to . . . address our current financial situation. This included identifying certain properties, including Philmont Scout Ranch, that could be used as collateral.”
The BSA says it’s exploring “all available options,” including passing costs on to members. The annual membership fee for its 2.2. million youth members will rise from $33 to $60 next year. Many members are not happy about that either.
Managing money, property, and people’s best interests takes real wisdom, and sometimes it’s not possible to please everyone involved.
1st comment!!!
Oh OK?
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Have any of you hear ! They are letting girls into boy scouts!! That is absurd!!
@NA
Yes I did hear that.
@NA
Yes. One of my friends (a girl) is in (What used to be) Boy Scouts.
@NA
i agree.iz ABSURD and STOOOOPID!!!!!!!
@ Beth G
There going into boy scouts because they want to be a boy. That's the hard truth.
@NA
She does not want to be a boy. I think she just likes the opportunities that Boy Scouts offers.
hmmmmmmmmmmmmmm...................
dunno wut 2 think
@ Zack W
Then why is there a girl scouts?
Boy scouts is for boys and girl scouts is for girls if your a girls you go to girl scouts if your a boy you go to boy scouts it's that simple!
Boy should not go into Girl scouts that would be weird!
Girls should not go into Boy scouts.
@NA
Boy and Girl Scouts do different types of activities. Some girls prefer the ones the Boy Scouts do.
To Above
Well then they should create there oun club and do the same things and call it girl scouts.
@NA
There already is Girl Scouts and in Girl Scouts you can't Eagle.
It makes sense
To be honest I'd rather join boy scouts than girl scouts. It seems much more fun and interesting.
To Above
Ok................????
here's my opinion
well i personally think boy scouts would be more fun than girl scouts but that doesnt mean i would join an orginazation specificly called BOY scouts. And i dont think what they're doing financially is a great idea
Elsie (Emelias sister)
And I'm a tomboy so I understand if they were doing it just so girls could experiance it too. I'd enjoy that tbh.
Elsie (Emelias sister)
Zack, I agree with you.
Nadia, I think they just want girls and boys to have eqaul opportunities.
@Elsie G
All girls can now join Scouts.
To Above
Oh yay!
-El
yep
This is why i dont go to boy scouts any more
To Above
Because they let girls in?
OK now, about the article...
I don't think they should mortgage it they could end up losing it all. Ther'e in a lot of debt already. But its up to them on what to do and I don't know all the details. So, I think they should do what they think is best.
GUYS does anyone know what
GUYS does anyone know what this means???
ad hominem
caesar est magnus
@Glorianna B
to the man
Caesar is great/large
@Gloriana
Hey you should go back on Librarians Hunt Bedbugs!
They declared bankruptcy!!
They declared bankruptcy!!