|
Financial Information
 Payment Terms
A member, regardless of when he/she signs
their first contract, will have an anniversary date of December 1st for
the bred heifer, bred cow or cow/calf pair program. All required payments
must be made on or before December 1st. For the heifer calf program, the
payment is due one year from the contract date. The member will be charged
a late payment fee of $1.00 per head per day for payments made after the
deadline. Any shortfalls in repayments are the sole responsibility of the
member.
The repayment of loans are 20% of the original
principal plus interest for each year over a five year period. Full
repayment of the original principal plus interest for the heifer calf
program are due one year from the date on the contract.
A member may choose a financing rate suitable
to them, ie. A "floating rate" is equal to prime plus 1/2 of one percent
and a "fixed rate" is equal to prime plus two percent for all five years
or prime plus one percent which is set on December 1st of every year using
the current prime (+1%). Note: Floating rate will fluctuate with the
increase or decrease of prime. For the heifer calf program, the only
interest rate available is the floating rate of prime plus 3/4 of one
percent.
Members who choose a "floating rate" may make
a prepayment at any time without penalty.
Members with a "fixed rate" will have their
funds put in an interest bearing account by the Association until December
1st.
Financing Qualifications
A member must supply the Fort Cow Calf Co-op
Association with a certificate after pregnancy testing their heifers.
The Association finances the current fair
market value of the animals.
Security Deposit
Before a contract is signed, a member
must have a security deposit with the Association of not less than 10% of
the total loan. This deposit is held in trust and does not become part of
payment on the loan. A non-active member can withdraw his security deposit
90 days after year end provided the Association has no members with
overdue accounts. If a member's account is overdue, his/her security
deposit is applied against the overdue account before a pro rata levy is
assigned to the security deposits of other members.
Length of Contract
Members have up to five years from December
1st of their first contract to repay their loans to the Association,
although members must make the required yearly payment as set out
on their Sales Contract. (Example: 20% of the original principle, plus
interest each year for five years). No extensions. Members who have
financed heifer calves must repay their loans one year from the date of
their contract. No extensions.
|
