WHO IS ELIGIBLE?
Generally, customers whose loans are capitalized by stock are eligible for cash-back dividends. These loans include operating and agriculture real estate loans, as well as some consumer-purpose loans secured with real estate (see excluded products).
If a customer paid off a loan during the program year, he/she is eligible for patronage for the period the loan was outstanding, provided no exclusions to eligibility apply.
WHO IS INELIGIBLE?
PRODUCTS INELIGIBLE FOR CASH-BACK DIVIDENDS
- Non-accrual loans past due as of December 31.
- Forbearance or restructured loan agreements that include patronage waivers.
- Charge-offs (net), partial or full. All the customer’s loans are ineligible for seven years from the date of most recent charge-off, unless fully recovered, including any loans originated subsequent to the charge-offs.
- Filed bankruptcy, voluntary or involuntary. The customer will be ineligible for a period of seven years from the date of discharge from bankruptcy or a similar proceeding and concluding on December 31st of that seventh year.
- Sales contracts (Contracts for Deed) resulting from a loan restructure.
- Accelerated loans as of December 31. One accelerated loan makes all the customer’s loans ineligible.
- A loan made expressly on a non-patronage basis.
- Cash-back dividends of less than $50.
- Insurance products, as required by regulations prohibiting the distribution of insurance income directly to customers who generate it.
- Leases, as required by the lease agreement with our lease processor, Farm Credit Leasing.
- AgDirect equipment financing made after April 11, 2010.
- Young and Beginning Development Fund loans.
- Consumer-purpose loans secured by real estate except those previously issued with patronage pricing before April 15, 2018 and:
- Closed on or after January 1, 2018.
- With a completed loan servicing action on or after January 1, 2018, for the following(*):
- All interest rate conversions
- Maturity/Extension of Terms greater than 3 months
- Payment Extensions or Deferments or
- An additional advance closed on or after April 15, 2018.
(*Partial-year eligibility is based on servicing action date.)
- A loan participation or a multi-lender syndicated loan, unless the contract with the borrower specifically provides for the payment of patronage.