Existing American AgCredit stockholders
now have the option to buy preferred
stock issued by the Association through a
Preferred Harvest Stock Account.
Stockholders interested in buying
Preferred Harvest Stock will be provided
a Disclosure Statement that thoroughly
describes the Stock. The following
describes the main characteristics.
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
Board 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 has over $270 million in
unallocated surplus and exceeds all
minimum capital requirements.
The Dividend
Rate is variable and may change
quarterly.
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. American AgCredit, 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 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.
The Association reserves the right to
limit the number of Harvest Stock
Accounts or restrict the maximum
dollar amount in the Harvest Stock
Account. The Stock is nonvoting.
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 initial subscription must be for a
minimum of 5,000 shares ($5,000).
Cash purchases of shares must be for a
whole number of shares.
Your Loan Officer can supply you
with a full Disclosure document and
Subscription Agreement.
** H Stock is an “at risk” investment.
