Linn County REC is a member owned, not-for-profit cooperative under Iowa law. When there are profits that exceed the amount needed to operate the cooperative, they go back to the members in the form of capital credit payments.
The board of directors approves the allocation of capital credits. They also determine what amount is to be paid annually. Each year you will be notified of your share of the margins for the previous year.
Capital credits cannot be paid back to the members until the cooperative's loan indebtedness is sufficiently reduced and the financial condition of the cooperative will permit. At that time, your board of directors, in accordance with Iowa law, may begin refunding your capital credits to you. Capital credit payments appear as a separate line item on the September bill statement.
Previous members that have an unpaid debt to the cooperative will have their future capital credits reduced by that amount.