President of the US Tobacco Cooperative, Tommy Bunn explains that the US Tobacco Cooperative is redeeming select year certificates:
“The Board of Directors of US Tobacco Cooperative, has decided to redeem certificates that were issued in 1977 for the ‘67 and ‘68 crop years. The reason they are trying to do this is to go ahead and get those certificates redeemed for those people who want to do so. It is a voluntary redemption.”
Bunn goes on to explain the reasoning behind the issuance of the certificates:
“They were issued to try to retain monies in the Cooperative so if the program was discontinued they could have money to continue operations until they could decide which direction the cooperative should move in. That actually occurred in 2005, and the program has been operating as a private entity, as a cooperative, since that time. The money was used to operate the cooperative, and now that profits have been made, the Board has decided to go back and redeem these certificates and pay them off.”
Bunn speculates the number of certificates that are eligible for redemption and their value:
“There are thousands, possibly a hundred thousand, each valued at approximately forty dollars.”
According to Bunn, if a producer or his survivors have certificates, they don’t have to redeem them at this time:
“The certificate was issued along with the dividend. Part of the dividend was paid in cash, which the farmer received, and part was in a certificate of equity. There is a certificate of interest and that is what we are redeeming. The farmer paid taxes at the time the dividend was declared so there is no tax on the redemption of these. If the farmer decides not to redeem, they can maintain ownership and redeem it at a later call.”
If the actual certificate isn’t available, Bunn says the certificate can be researched:
“If they don’t have the information available, but think they are eligible, they can call in and use a social security number to trace it. We can also use the address of the person who bought the certificate. “
To learn more about redeeming Certificates of Interest in the US Tobacco Cooperative call toll free 877-277-7422 or go to tobaccocheck.com .
The deadline to redeem these certificates is June 30, 2012.