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MORE IMPORTANT INFORMATION
Death Loss
All deads must be reported to the Supervisor immediately so the head count can be taken out of our inventory. Member is still responsible for the total dollars borrowed on all loans, but can replace the dead cow/ewe/doe with one from his own herd and brand/tag it with the Co-op brand or tag.
Insurance
We do not offer insurance on the livestock, which means it is the responsibility of the member to acquire his own insurance if so desired. It is still the responsibility of the member to ensure the loan is paid in full by the due date of the loan, or it will be consider in default and the member will be suspended.
Members are encouraged to take advantage of Cattle Price Insurance Program (CPIP) through AFSC for risk management on their calves.
Although the Co-op does not finance breeding bulls, rams, bucks, members can purchase insurance on them by contacting Hartford or other sources directly.
Repayment
Annual principal payment amounts will be in equal installments over the term of the loan (ie: on a five-year loan, annual payments will be one-fifth or 20% of the original principal amount) until the loan is paid in full, with interest, annual fees and insurance being paid with each annual payment. The first annual payment on a new loan will be due the first payment date after the member is expected to have a calf crop to sell.
Annual Payments must be principal plus interest & annual fees, and will be applied firstly to principal, secondly to interest & fees, with any excess being paid back to the member.
If a member wishes to retain ownership of the calves and not brand with the Coop brand, then see the
Prepayment would include principal payment, Co-op fees, insurance and interest. Interest will be applied for the amount due as of the date of the payment, and the balance that is due on the normal annual payment date, will be applied on the due date, with any overage (due to loan being paid down from principal payments), being applied to the principal of the loan.
If the payments are not paid by the Due Date, the loan will be considered defaulted, and the member will be suspended.
When a member sells part or all of his calves and the proceeds are not enough to pay the full annual payment, proceeds will be applied to the upcoming annual payment firstly to Principal, secondly to Interest, thirdly to annual and any other fees, and lastly to overage. Should the member choose to make an unscheduled partial payment from other sources during the year, the payment will be applied to the principal.
If the sale of all calves does not generate enough money to cover the annual payment, the member is required to pay the shortfall to the Co-op by the annual payment date or the loan will be deemed in default.
The member will receive a proceeds cheque for any amount by which sale proceeds from calves exceeds the total annual payment amount.
Proceeds from the sale of cull cows, ewes or does, under contract during the year, will be applied to the principal of the oldest loan. When calves, lambs or kids are sold it will be applied towards the annual payment.
Loan Payout
To pay out the loan in full, the member must pay the outstanding principal balance, accrued interest to date of the loan payout, any outstanding search or other fees. There will be no Co-op fees deducted on loan payouts. There is also no prepayment penalty for paying out a loan early.
Annual Payment due dates:
Spring born calves, lambs, kids – annual payment due Dec 1 of the same year or June 1 for early payment to brand calves with your own brand or tag lambs & kids with your own tags.
Fall born calves, lambs, kids – annual payment due June 1 of the following year, or Dec. 1 the year of birth for early payment to brand calves with your own brand or tag lambs & kids with your own tags.
The annual payment at the time of the loan advance, will continue to be the annual payment amount throughout the term of the loan,regardless of any paydowns from sales and annual payments.