Capital credit
A capital credit is a bookkeeping credit to a member's account for patronage allocated but not paid in cash; chapter 308B names capital credits as a form of distribution but does not define them.
Chapter 308B lists "capital credits" among the forms in which a cooperative may distribute net income to patron members § 308B.725, subd. 5 P1. Section 308B.005 does not define the term P1. In general cooperative usage a capital credit records a member's share of retained patronage, but the terms of any credit, including whether and when it is paid out, are set by the bylaws and the board's decisions.
See Allocated patronage equity and Raise member equity and capital.
Statute sections referenced
- § 308B.005 DEFINITIONS.
- § 308B.725 ALLOCATIONS AND DISTRIBUTIONS TO PATRON MEMBERS.
Related
Sources
- P1 Minnesota Statutes, Chapter 308B (Cooperative Associations), Office of the Revisor of Statutes, State of Minnesota. revisor.mn.gov (primary; accessed October 15, 2026)