Existing AgCarolina Farm Credit stockholders have the option to buy preferred stock issued by the Association through the Preferred Stock Program. Stockholders interested in buying Preferred Stock will be provided a Disclosure Statement that thoroughly describes the stock.
Dividends will accrue daily at the Dividend Rate on the par value of the stock from the date of issuance to the date of retirement. The AgCarolina Farm Credit Board of Directors intends to declare dividends on a quarterly basis and pay dividends on the last day of each quarter. Dividends may only be declared and paid out of the unallocated surplus of the Association, and then only if, after such declaration or payment, the Association will meet minimum capital adequacy requirements established by regulation. The Association currently exceeds all minimum capital requirements.
The Dividend Rate is variable and may change quarterly. The current Dividend Rate is 0.50% for the 2020 4th quarter.
Automatic Reinvestment of Dividends
Any dividend paid will be paid in shares of stock at par value. Holders of the stock will not receive any cash distributions until the stock is retired. Instead, any dividend paid on the stock will increase the number of shares held by each holder.
A holder may request a redemption at any time. When retired, shares of stock will be retired at their par value, plus accrued but unpaid dividends. Retirement is contingent on the Association meeting certain regulatory capital standards. AgCarolina Farm Credit, ACA presently exceeds its minimum capital standards and knows of no reason why it will not meet applicable standards at any future time. At present, the AgCarolina Farm Credit Board of Directors intends to allow management to approve a particular redemption request under certain conditions. However, the board may elect, in its sole discretion, not to retire any shares of the stock tendered for retirement. Such retirement may also require the approval of the FCA.
A purchase of the Preferred Stock is an "at risk" contribution to the capital of AgCarolina Farm Credit by the holder thereof (each, a "holder"). Neither the return of the purchaser's investment, in whole or in part, nor the receipt of any dividends thereon is guaranteed by the Association or any affiliate thereof, the Farm Credit System Insurance Corporation, or any other federal or state government or agency or any third party. Subject only to the Preferred Stock's preferences over Common Equity of AgCarolina Farm Credit, the purchaser's investment will be subject to the risks of the business of AgCarolina Farm Credit as a lending institution serving agricultural and rural borrowers in its chartered territory. The Preferred Stock has no fixed maturity or redemption date, and a holder of Preferred Stock possesses no rights to have Preferred Stock redeemed upon the Holder's request or at any particular time.
How to Subscribe
Any Association stockholder may purchase shares of the stock by completing a Subscription Agreement and providing either a check for the purchase price of the shares or transferring amounts from an existing Funds Held Account. Each Preferred Stock share has a par value of $5.00. Each initial subscription must be for a minimum of 100 shares ($500). Cash purchases of shares must be for a whole number of shares. Each subsequent purchase must also be for a minimum of 100 shares ($500). Your loan officer can provide you with a full disclosure document and Subscription Agreement.
** Preferred Stock is an "at risk" investment.