What Is A Patronage Refund?

As an agricultural credit cooperative, Mississippi Land Bank is owned by the member-borrowers who purchase stock/participation certificates in the cooperative. At the end of each fiscal year, the board of directors may choose to either retain the association's net income to strengthen its capital position or distribute some or all of the net income to members by declaring a dividend on stock, or a patronage refund.

A patronage refund is distributed to members in proportion to their use of the cooperative or the amount of interest earned on their loan by the association.

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