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Consecrated oil used for anointing the newly baptized person with the sign of the cross at baptism. At this consignation, the bishop or priest says to each newly baptized person that "you are sealed by the Holy Spirit in baptism and marked as Christ's own for ever" (BCP, p. 308). Chrism must be consecrated by a bishop. It may be consecrated immediately prior to the baptism. It may also be consecrated by the bishop on an episcopal visitation when there is no baptism, or at a diocesan service such as the Reaffirmation of Ordination Vows of the diocesan clergy. The BOS provides a form for the consecration of chrism apart from baptism. Chrism is olive oil mixed with a fragrant ointment, usually balsam. 

Glossary definitions provided courtesy of Church Publishing Incorporated, New York, NY,(All Rights reserved) from "An Episcopal Dictionary of the Church, A User Friendly Reference for Episcopalians," Don S. Armentrout and Robert Boak Slocum, editors.
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