What does it mean that Lone Star Ag Credit is cooperatively owned?
Lone Star Ag Credit is a cooperative. Therefore, everyone who obtains a loan through the Lone Star Ag Credit becomes an owner of the association through the purchase of stock equal to two percent of their loan amount or $1,000.00, whichever is less. Funds for the stock can be included in the loan. Ownership of this stock gives you the right to participate in the business affairs of the association, including election of the board of directors. Traditionally, borrowers receive patronage refunds and/or dividends, which are paid into their interest-bearing Funds-Held Account. The Funds-Held Account is typically applied to the loan balance, thus further reducing the cost of borrowing for customers.