What does it mean to say, “Capital Credits are allocated to the members?”

An allocation is a determination of each member’s share of NCTC’s profits for a given year. These profits are allocated or assigned to members in proportion to the total amount of goods and services purchased by the member for that calendar year. NCTC keeps a permanent record of these allocations on what is called a capital credit account for each member, which is where the allocated amount remains until it is paid to the member. This process is called a “retirement of capital credits”.