One of the advantages of the Northern Partners merger was the ability to offer programs that one of the original cooperatives had to patrons of the other original cooperatives. Utica Elevator utilized a debenture note program that allowed its patrons to invest funds with the cooperative on a short term basis.
Northern Partners is continuing this debenture program for its patrons. This first year we are starting on January 1st and it will go through March 1, 2011, our fiscal year end. The program allows for a patron of the company to take out a debenture note for up to a maximum of $10,000. Northern Partners will pay the patron a simple interest rate of 3% through March 1, 2011.
The interest would be paid on March 1, 2011. The note cannot be redeemed early unless closing an estate or other legal matter. This would require Board of director approval. Ownership of the note can be transferred only with Board of director approval.
The total amount of the debentures allowed is limited. The program will be on a first come basis until the limit is reached.
The debenture program is designed to allow patrons to receive a slightly higher interest rate than simple deposits and at the same time allow the company to borrow money slightly less than at their lender’s rates.
If you have any questions regarding the program please call us at (866) 773-6772.
Debenture policies:
•Interest rate is 3%
•Interest is paid on March 1, 2011
•Debenture note matures on March 1, 2011
•Debenture note cannot be redeemed before March 1, 2011
•In the case of closing an estate a request can be made to the board of directors for early redemption
•A request can be made for transfer of ownership which will need board of director approval
•Debenture note holders must be patrons of Northern Partners Cooperative and reside in Illinois
•Debenture note holder does not gain additional voting privileges
•Debenture notes are subordinated to all other indebtedness of the company
•An offer to extend the debenture program past the March 1, 2011 maturity date can be offered up to two months prior to maturity
•Debentures notes have a limit of $10,000 per patron
