Legal Question in Investment Law in California

The relatively small amount of money at stake here complicates the situation somewhat, especially since you are out of state. The usual process would be to retain a lawyer to review the notes and any material furnished in promotion of their sale, such as a prospectus or offering circular. It would be interesting to know what was promised, how many were sold, whether there is a trustee for the noteholders, and, most important, whether there is any collateral. A statement in 1995 that a note is secured doesn't necessarily translate into valuable and attachable collateral today. There is a further question as to whether the church or other issuer can be sued for money damages or whether one must proceed against the collateral. In the first case, a small-claims action could be appropriate; in the latter, it may be necessary to go into Superior Court with a foreclosure action. I'd start by reviewing the offering documents to verify the creditors' remedies and checking title of the church real property to see if there is a security interest backed by equity in real estate.

There is no good and easy way to collect that small an amount of money against a Calfiornia entity, from North Carolina. A church can be sued like any other organization, but for that amount it is a Small Claims matter, requiring your personal appearance in court in California.