Capital Credits

Capital credits or patronage capital is a customer’s assigned portion of excess revenues. Instead of making a profit, CEC returns excess revenues back to its customers. On an annual basis, customers are notified via postcard of their share of excess revenue. These amounts are kept by the cooperative to maintain and invest in equipment providing better service to Cordova.

The Board of Directors reviews finances and loan agreements to decide if the revenues can be paid back without having a negative effect on the cooperative. In 2018 and for the first time in CEC history, the Board voted to return funds back to customers.

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If a member passes away their capital credits can sometimes be paid out early at a discounted rate to their estate. If a member left any debt with the cooperative their capital credit payment will be applied to the debt before being issued. CEC will also retain payments less than $20 until their pay out exceeds this amount.

Capital credit checks will be sent to the last known address of the member. Members are responsible for providing CEC with a current address. Checks that are uncashed or checks for members with unknown or invalid addresses will ultimately be reverted to CEC. You can help CEC find members by viewing the list on this page and directing members to contact us.

Reference the guide below if claiming capital credits due to name change, divorce, on behalf of a deceased member, or business. Please note that insufficient or incomplete information may not be conclusive to establishing ownership. Contact CEC if you have any questions or need help filling out forms.

If claiming due to divorce or cohabitation, provide the following:

• Provide a copy of the court order assigning ownership of the capital credits to the individual (certified copy if claim is $5,000 and more), and
• Proof of social security number

or,

• Executed copy of CEC form, “Certification of Ownership of Capital Credits After Divorce or Name Change” completed by the other party to the marriage consenting to the transfer of the capital credits to the individual

If claiming due to a name change, provide the following:

• Provide a copy of the court order reflecting the name change, and
• Executed copy of CEC form, “Certification of Ownership of Capital Credits After Divorce or Name Change”

If claiming as an executor of a member’s estate, provide the following:

• Death certificate (certified copy if claim is $5,000 and more), and
• Court documents appointing the individual as Administrator of the Estate

If claiming as an heir to a member, provide the following:

• Death certificate (certified copy if claim is $5,000 and more), and
• One of the following:
  • If the deceased owner left a probated will, provide a certified copy of the court order directing distribution of the estate;
  • If the deceased owner did not leave a will or the will was not probated, a notarized Affidavit for Collection of Personal Property.
• If the Estate has been closed, provide a certified copy of the court documents verifying final closing and distribution for the estate.

If business or entity no longer exists but was purchased or sold provide the following:

• Executed copy of the Buy/Sell Agreement

If business experienced a name change, merger, or has an assumed name (d.b.a.) provide the following:

• Certified Copy of corporate documents and state filing reflecting the name change or merger

If business is no longer in existence provide the following:

• Certified copy of the Articles of Dissolution filed with the State of Alaska, or
• Corporate Liquidation form filed with the Internal Revenue Service

Also provide one or more of the following:

• Corporate resolution or minutes from a meeting
• Partnership agreement
• Notarized affidavit signed by a financial officer
• Copy of biennial report
• IRS issued EIN Letter
• State Articles of Incorporation
• City of Cordova or State Business License

CEC will evaluate the information provided to ascertain whether it will be sufficient to allow payment of the entity’s capital credit.

Help us find people! CEC is looking for the people listed on this page. Contact CEC today!

Assignment of Capital Credits After Owner’s Death

Business Certification of Entitlement to Capital Credits

Certification of Ownership of Capital Credits After Divorce of Name Change