Overview of Patronage Capital
What is it?
“Patronage Capital”, as defined in Sawnee's Bylaws, is revenue in excess of operating costs and expenses. Patronage capital is assigned to each member of record at the end of each fiscal year. The retirement of patronage capital is controlled by the Bylaws of the Corporation and by certain lender restrictions. Generally, the Board of Directors may approve a retirement of patronage capital when it will not impair the Corporation’s financial condition.
Why does it occur?
Georgia Law and SEMC’s lenders require that Sawnee EMC collect revenue in excess of its operating costs and expenses ("patronage capital"). The Bylaws of Sawnee EMC require that each member who provides patronage capital have an account in the books and records of the Corporation that tracks how much patronage capital is assigned to that member.
Types of Patronage Capital Retirement
There are two (2) types of patronage capital retirements:
2) A retirement to the estates of deceased members
What is it?
This is when the Board of Directors of the Corporation has determined that it is in the overall best interest of the Corporation to retire the assigned patronage capital for a specific year to the members that provided it. This action is called a “general retirement” of patronage capital, which affects all members of record for a specific year. The Board has made the decision that a patronage capital retirement is to occur and that it will be refunded on a "first-in, first-out" methodology and only those members that provided this capital will receive these funds.
Estates of Deceased Members
What is it?
The Bylaws and Policies of Sawnee EMC provide that the Board of Directors of the Corporation may consider and retire, on a discounted basis, patronage capital to the estates of deceased members. These occur at the request of an executor of a deceased member's estate, and are accomplished by a petition from the executor requesting that the retirement occur.
Who does it apply to?
This aspect of patronage capital retirement "only" applies to the estates of deceased members of Sawnee EMC.
How to make a claim?
Executors (and administrators) of an estate of a deceased Sawnee EMC member may voluntarily petition the Board of Directors of the Corporation to settle (close out) that member’s patronage capital account early instead of waiting on a Board approved general retirement to occur. Executors are not required to take this action, and the decision to petition the Corporation for this type of refund is solely at the discretion of the executor of the former member’s estate.
How do I apply?
Listed below is a hyperlink to the petition form to be completed and submitted to the staff of Sawnee EMC for a deceased member's patronage capital refund. Upon receipt of the necessary documents, SEMC’s Board of Directors will consider the request for an early retirement, on a discounted basis, of a deceased former member’s patronage capital account. SEMC Policy 303, Retirement of Capital Credits to Estates of Deceased Members on a Discounted Basis, shown below, provides additional information about this process.
Patronage Capital Frequently Asked Questions (FAQs) - The staff of Sawnee EMC has developed a general list of frequently asked questions (FAQs) to aid current and former members of Sawnee EMC in understanding the various attributes of patronage capital and patronage capital refunds.
Unclaimed Patronage Capital - Help Us Find Our Former/Lost Members
Who we are looking for?
Sawnee EMC's retirement of patronage capital process has been very successful for decades, but sometimes it is difficult to find "former" members of Sawnee who have moved away or did not provide a valid forwarding address with the Cooperative. In short, when a patronage capital retirement occurs, Sawnee simply cannot find these former members in order to give them the money that belongs to them.
To assist in this search effort, Sawnee recently adopted an enhanced outreach program to hopefully address this issue called "Lost Members". Please click the "Lost Members" link, http://www.sawnee.com/lostmembers, for further assistance.
Listed below are a series of documents that are provided in support of Sawnee EMC’s patronage capital retirement program. These forms and documents can be downloaded by selecting the hyperlinks below.
Standard Claim Form – This form is to be used by former members of Sawnee EMC to request consideration for previous unclaimed or otherwise abandoned patronage capital.
Estates of Deceased Member Application Form – This petition is to be used by the executor (or administrator) of an estate of a deceased member of Sawnee EMC to request a distribution of that member’s patronage capital, on a discounted basis.
SEMC Bylaws – The current Bylaws of the Corporation can be found here.
SEMC Patronage Capital Policies – SEMC has three (3) Corporate policies that relate to the administration of patronage capital and they are listed below.
Overview of the GA Unclaimed Property Laws - The State of Georgia has established laws governing unclaimed property. Visiting this site, you can access the GA Department of Revenue’s Unclaimed Property web site. Funds that are unclaimed after a period of time, as defined by Georgia law (e.g. 5 years), are considered to be abandoned and either turned over to the State or allowed to be distributed under guidelines defined by the State of Georgia.
If you have questions about Sawnee EMC’s patronage capital program, please feel free to send us an email (firstname.lastname@example.org) or call our Customer Service Center (770-887-2363).