Ownership Interest in Jackson County Capital Credits

Sale of Ownership interest in Jackson County REMC Capital Credits due to it for the years 1984 through 2016 (the “Asset”). As a member of Jackson County REMC (“REMC”), an energy cooperative, seller is periodically entitled to “capital credit” refunds. REMC tracks the amount of electricity used, and the amount paid, by members each year. At the end of each year REMC determines if they have received excess revenues, or “margins.” If so, REMC allocates the margins to members as capital credits based upon their electricity use and, when the cooperative’s financial conditions permit, REMC’s Board of Directors or Trustees “retires” or refunds the capital credits to members. For example, in the fall of 2016 REMC declared that the capital credits allocated to members for the years 1978 through 1983 were eligible for refund to REMC members who had service during those years. Seller was entitled to a capital credit refund of $15,142.61. Debtor will be eligible for capital credit refunds for the years 1984 through 2016 if and when REMC decides to retire the capital credits for those years.