Capital Credits definition

Capital Credits means the amounts allocated to a Patron and contributed by the Patron to the Cooperative as capital. Consistent with this Bylaw, the allocation of Capital Credits is in the discretion of the Board and the Board must determine the manner, method, and timing of allocating Capital Credits. The Cooperative may use or invest unretired Capital Credits as determined by the Board. To secure a Patron’s obligation to pay amounts owed to the Cooperative, including any compounded interest and late payment fee, and in return for the Cooperative providing a Cooperative Service to the Patron, the Cooperative has a security interest in Capital Credits allocated to the Patron. Through a security agreement signed or authenticated by a Patron, the Patron may grant the Cooperative a security interest in Capital Credits allocated to the Patron and authorize the Cooperative to perfect the security interest.

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Capital Credits means equity interests in the Association, other than capital stock, that are allocated and issued to individual equityholders. Capital Credits are further defined and described in the Articles.

Capital Credits means equity interests in the Association, other than capital stock, that are allocated and distributed to individual equity holders, and may include, without limitation patronage certificates, written notices of allocation, Per-Unit Retain Certificates or other similar equity interests authorized by the Board of Directors from time to time. Capital Credits are further defined and described in the Articles.

Examples of Capital Credits in a sentence

Consistent with this Bylaw, the allocation of Capital Credits is in the discretion of the Board and the Board must determine the manner, method, and timing of allocating Capital Credits.
The Cooperative may use or invest unretired Capital Credits as determined by the Board.
The Cooperative may retire and pay Capital Credits only if the Board determines that the retirement and payment will not adversely impact the Cooperative’s financial condition.
The Cooperative shall allocate Capital Credits as provided in this Bylaw.
The manner, method, and timing of retiring and paying Capital Credits may be determined only by the Board.
The Cooperative may regularly impose a reasonable dormancy or service charge for each year a Patron or former Patron fails to claim Capital Credits retired and paid to the Patron or former Patron.
As reasonable and fair, the Cooperative may allocate Capital Credits to classes of similarly situated Patrons under different manners, methods, and timing, provided the Cooperative allocates Capital Credits to similarly situated Patrons under the same manner, method, and timing.
As determined by the Board, before the time the Cooperative anticipates normally retiring and paying Capital Credits, the Cooperative may retire some or all Capital Credits and pay the net present value of the retired Capital Credits.
Although a Board Committee may recommend, a Board Committee may not act, to: (1) retire and pay Capital Credits; (2) approve the Cooperative’s dissolution or merger, or the sale, pledge, or Transfer of all, or substantially all, Cooperative Assets; (3) elect, appoint, disqualify, or remove a Director, or fill a Board or Board Committee vacancy; or (4) adopt, amend, or repeal Bylaws.
Consistent with this Bylaw, the retirement and payment of Capital Credits are in the sole discretion of the Board and are not affected by previous retirements and payments.

More Definitions of Capital Credits

Capital Credits means the amounts allocated to and contributed by the Patron to the Cooperative as capital.