Important Information Regarding Your Special Patronage Dividend.
posted: 01/03/2012
Eligibility for the Special Patronage Dividend required that a member be active and in good standing as of 12/31/2011. You were an active member if you had activity on your account in 2011 (e.g., deposit, withdrawal, payment) or had $1,000 or more in total deposits on 12/31/2011.
You were in good standing if you had $5 or more in a regular savings account as of 12/31/2011, had no negative balance except if you used overdraft services on your checking account within permissible limits, had no loans over 30 days past due as of 12/31/2011, and never caused a loan loss for the credit union.
Here is how the Special Patronage Dividend was calculated:
- $5 for an active debit card (last debit or ATM transaction between 12/1/2011 and 12/31/2011)
- $5 for eStatements (enrolled as of close of business 12/31/2011)
- $5 for active bill payment (at least one payment made or scheduled to be made after 11/15/2011, as of 12/15/2011)
- $10 for an active credit card (payment made between 11/20/2011 and before 5:30 p.m. on 12/29/2011)
- $40 for each first mortgage (your balance was greater than $0 and payable to MECU)
- 2.15% of the total dividends paid to you in 2011
- 2.15% of the total interest you paid on loans in 2011, excluding all mortgages, credit cards and student loans
Calculations for dividends paid on savings and for interest paid on loans (excluding Visa, first mortgages and student loans) were as of 12/31/2011.
The Special Patronage Dividend is reportable on IRS Form 1099-INT for 2011 and, for some members, a Form 1099-MISC for 2011. All share dividends earned in excess of $10 (dividends earned from share account balances) will be reported on IRS Form 1099-INT and non-share dividends (those earned from first mortgages, debit and credit cards, bill payment, and eStatement relationships) will be reported on IRS Form-MISC if $600 or more is accumulated for the year. Please consult your tax advisor regarding any duty to report non-share dividends paid.
The Special Patronage Dividend was paid to primary members only. Joint owners did not receive separate dividends.
If you requested to not receive dividends on your account, you did not receive the Special Patronage Dividend.
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