Boston takes out short-term loans to pay sex abuse settlement

Published: 2003-12-11

BOSTON (CNS) -- The Boston Archdiocese will take out short-term loans from a variety of sources to pay clergy sex abuse settlements totaling approximately $90 million Dec. 22, officials announced in a memo faxed to priests Dec. 6. The memo was sent to priests after a meeting scheduled for that day with Boston Archbishop Sean P. O'Malley was postponed because of the storm that dumped record amounts of snow in some areas of the region. Sent by Boston Auxiliary Bishop Richard G. Lennon, moderator of the curia, the memo said the $90 million amount is a combination of the $85 million settlement with 541 victims of abuse and a small number of individual settlements expected to amount to between $3 million and $4 million. To obtain the money by Dec. 22, the date that settlement checks will be issued, the archdiocese will obtain short-term loans from a number of sources. According to the memo and previous statements by the archdiocesan spokesman, Father Christopher Coyne, money from insurance carriers and the sale of approximately 28 acres of archdiocesan property, including the former cardinal's residence, will be used to repay the loans.

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