Capital Credit Frequently Asked Questions

You have 2,013,533  reasons to be a customer/member of NCTC. This year beginning 8/25/21 the company will issue payments to some of our customer/members  in the total amount of Two Million Thirteen Thousand Five Hundred Thirty-Three Dollars ($2,013,533).  The payment that will be received  is a capital credit payment.  So you have some questions. 

WHAT ARE CAPITAL CREDITS?

For a telephone cooperative, Capital Credits are the amount of money left over at the end of a business year once all the operating expenses have been paid (generally referred to as profits in a private company). This remaining money is allocated separately to each member of the cooperative in proportion to the total amount of goods and services purchased by the member for that year. In other words, members get a percentage of the profits credited to them and the more services and goods that they have purchased means a greater share of the capital credits. Members begin accumulating capital credits with their first purchase of services and goods from NCTC .

Capital Credits are just one of the many benefits of your NCTC membership because private telephone and internet companies do not make capital credit payments to their customers.  

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”.

WHAT IS A RETIREMENT OF CAPITAL CREDITS?

A retirement of capital credits occurs when NCTC pays a member a certain portion of that member’s capital credit account. The Board of Directors annually reviews the financial criteria of NCTC and various legal requirements and determines if it is appropriate to retire capital credits.  Likewise, the Board must determine the years for which capital credits  are being retired as well as the amount of capital credits to be retired.  These decisions are also based upon various financial criteria that measures the financial soundness of NCTC. 

WHAT CAPITAL CREDITS ARE BEING PAID IN 2021?

NCTC is retiring and paying capital credit allocations for portions of 1988 and all of 1989. Capital credit payments were issued for half of 1988 in 2006. If you were a member during that time period, you will receive a check payment unless your amount of capital credits at that time falls below the minimum distribution amount.  NCTC will distribute the funds totaling $2,013,533.03 beginning 8/25/2021.  

Capital Credit checks will be issued for amounts greater than or equal to $25.00.  Any member who holds an unretired amount less than $25.00 will be paid out upon the next distribution of capital credit payments if they meet the minimum threshold.

WHAT HAPPENS TO MY CAPITAL CREDITS ALLOCATED AFTER 1989?

General retirement of capital credits is paid in chronological order.  Capital Credits allocated after 1989 will remain in the members’ capital credit accounts.  Each year that the Board determines that it is financially sound for capital credits to be paid, those payments will be made for the next calendar year which would be 1990. 

HOW DO I APPLY FOR THE CAPITAL CREDITS OF A DECEASED MEMBER?

The administrator of the estate should report the death to the business office by calling 615-666-2151. Likewise, they should provide contact information including a good mailing address for future capital credit payments.  In case of a joint membership where a spouse has passed, a change in the membership name by the surviving spouse must be made to ensure future capital credits can be paid to the surviving spouse/member.

HOW CAN I CHECK TO SEE IF I HAVE UNCLAIMED CAPITAL CREDITS?

If you have moved out of the NCTC service area or NCTC does not have on file your current address, it is likely that a check was not mailed to you, and you would have an unclaimed capital credit.  Capital credits that are unclaimed are paid to the State of Tennessee by law as unclaimed property.  NCTC wants all of its members to receive their payments.  Please click link to view published list of unclaimed capital creditsIf you have an unclaimed capital credit please notify NCTC with a current mailing address. 

If you have questions about Capital Credits, please contact us at any time!

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