Patronage Program

AIM

Minnedosa Credit Union is owned by our members. If you're a member, you share in the Credit Union's success!

HOW DOES THE PATRONAGE PROGRAM WORK?

 After satisfying requirements for reserves, the Board of Directors may set aside a portion of earnings for members who have borrowed or saved at MCU. The amount any one member receives is based on utilization of Credit Union deposit and loan services, effectively this either lowers your interest rate on borrowing or increases your interest rate in savings!

HOW MUCH WILL EACH MEMBER BE ALLOCATED?

Savings and borrowing members are allocated a portion of the interest they earned and they paid during the year. This allocation will be credited to each member’s Surplus Share account (each membership number has a separate Surplus Share account). The allocation rate may vary from year to year and is dependent on the amount of earnings at year-end. The rate may also vary between interest earned as compared to interest paid, depending on the contribution to earnings they made.

WILL ALLOCATIONS BE MADE EACH YEAR?

The MCU Board will decide each year if the earnings of the Credit Union warrant their approval for patronage refund after December 31st each year.

CAN A MEMBER WITHDRAW THESE FUNDS?

Generally, the Surplus Shares cannot be redeemed. Like the $5 membership share, the Member Patronage Program is your vested interest in the operation of the Credit Union. On an annual basis the Board of Directors may declare a cash redemption of a portion of surplus shares.

UNDER WHAT CIRCUMSTANCES CAN A MEMBER WITHDRAW THE FUNDS FROM THE MEMBER PATRONAGE PLAN?

There are special circumstances under which consideration will be given to a complete redemption of the Surplus Shares in the Member Patronage Program:

  1. Upon reaching age 70 (in the case of a joint account – when the younger Member reaches age 70)
  2. Members having less than $100 in Surplus Shares may be paid out upon the closing of all other deposit, loan and membership accounts individually or jointly held.
  3. 100% of balance of shares if surplus is over $20,000 (personal membership)
  4. 100% of balance of shares if surplus is over $5,000 (business/agriculture membership)
  5. Death, bankruptcy or legal claims of government.
  6. If a member has more than one account with Surplus Shares and wishes to close one or more of them but continue to deal with Minnedosa Credit Union, all Surplus Share balances in the accounts being closed will be transferred to the (or one of the) remaining Surplus Share account(s).

WRITTEN APPLICATION FOR DEFERRED PAYOUT:

  1. Members who do not qualify for payout of their surplus shares must sign an application for withdrawal of their surplus shares upon closing all memberships individually or jointly held. Their surplus shares will be eligible for redemption after a 5 year waiting period from the date the final membership is closed. Should the member reopen a membership prior to the end of the 5 year waiting period the shares will be credited to the surplus share account of the new membership.

Where a corporate membership has been closed and the corporation is being dissolved the surplus shares being held for redemption may be held in the name of the shareholders for the 5 year waiting period.

  1. b) Charities and non-profit organizations may apply for withdrawal of their surplus shares without closing out their membership. Such redemption would exclude the membership from receiving a patronage refund the following year. 

 

 

As of June 2017, The Minnedosa Credit Union has paid our members $6.6 Million in Patronage Refunds! Our members have received $4.5 Million in cash!

Another example of how MCU is community owned, community minded!!
 

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