Capital Credits At a Glance
TeleMedia is a member-owned cooperative. What does this mean exactly? It means that when you become a member, you are investing in the company as an owner.So what are capital credits? Capital credits are the money or margin that is left over after all bills associated with doing business have been paid. Each member is entitled to these capital credits, or a share of the refund based on certain circumstances.
When you become a member, you will technically have two accounts – a billing account and a capital credit account. Your capital credit account is specific to the name(s) on the account and will stay with you regardless of if you move. Please keep in mind that you will need to communicate all residential address changes to the cooperative. At the end of each year, the company will asses their funds marginally and if able, allocate funds back to the members. Your share is deposited in your capital credits account for that year.
Even though members may receive capital credits each year, this does not mean the money is paid out immediately. These funds are used over a span of several years to serve the following purposes:
to increase equity giving the cooperative more borrowing power
to avoid borrowing money as much as possible
to reserve in the event of an unforeseen circumstance or emergency.
The Board of Directors assess the cooperative’s financial standing and will decide whether to retire the capital credits.
When the Board of Directors make the decision to retire capital credits, members will be notified. The amount due to members at that time will be mailed in the form of a check.
In the event that an account holder is deceased, capital credits may be retired with the proper documentation present. At this time, the spouse or heir would need to contact the cooperative regarding next steps.