+ Loan Accounts

**

The SPC Loan Account is a program where you can participate in financing the operations of your business by loaning money to the Co-op in order to reduce the amount the Co-op might have to borrow from a bank. We much prefer to pay interest to our owners than to pay interest to a bank! Any funds you put in the Loan Account are considered “on demand” money, meaning you can withdraw all or any part of your money whenever you like and we will either send you a check or ACH your money directly into your bank account. Interest is paid monthly and any funds deposited by the 10th of the month will earn interest from the 1st. Funds deposited after the 10th of the month do not earn interest for that month. Withdrawals may be made at any time but will not earn interest for the month in which they are withdrawn.

*Note: Funds deposited in the Loan Account are not insured.

Only funds from SPC advances, second advances and final settlements are accepted into the Loan Account. During the period coinciding with the IFQ season opening, through October 31, there is no maximum limit on the Loan Account. Outside of that time period the maximum limit for Loan Account balances is $50,000. Funds contributed over the $50,000 level during the period coinciding with the IFQ season opening through October 31 must be generated during that same time period. Any funds in your account that exceed the November 1 maximum limit will be returned to you by November 10 of each year.

*Note: This limit can be waived or increased in the year with board approval.

+ Gear Accounts

The SPC Gear Account allows you to purchase items at a wide variety of fisheries related stores, oftentimes with a discount for SPC owners. The store will call for a purchase order and send the invoice to SPC’s Bellingham office where it will be charged to your individual Gear Account.

Interest is charged monthly on Gear Account balances that are not paid by the next calendar month after the charge is made. Any owner with a pending settlement may charge up to ½ of the amount they have in their Capital Investment account.

Unpaid Gear Account balances of former members will continue to accrue interest at the current rate until paid. Annual Capital Investment will be applied to the unpaid Gear Account balance until the account is paid off.

+ Financial Responsibility / Capital Investment

The total capital investment will be set by the Board of Directors and changed as deemed necessary by the Board. By-law Section 10.5(a). Effective fiscal year 2021, the capital investment of $15,400 will be adjusted for the new fiscal year, each March 1, by adjusting according to the Consumer Price Index and rounded to the nearest $100.

Yearly retains for members will be at the rate of 10% of their gross fish ticket proceeds (both pool and cash) not to exceed 10% of the current maximum capital investment. Capital investment requirements will be retained as follows:

• Cash Deliveries: 10% of the gross fish ticket proceeds will be retained at the time of delivery until the maximum investment requirement for the year is met.
• Pool Deliveries: Any capital investment retains from cash deliveries as noted above will be applied to the total capital investment amount due for the year. Half the remaining balance will be collected from second advance and half from final settlement.

Cash/Pool Selling
Owners can sell for cash or pool during the summer troll season. Winter and spring kings must be sold for cash.

NOTE: Winter and spring troll fisheries, and any directed rockfish fisheries, remain excluded from the capital contribution policy. Capital deduction from cash deliveries will only be done in fisheries where SPC offers pool option.

One Pool Details
Pool production is settled on a percentage of dock method. All pooled fish will end up with the same percentage of the dock price that is listed on your ticket when you deliver. For instance, if the settlement price for the pool works out to 10% over dock then everyone in the pool will end up with 10% over the dock price on their fish ticket. Below is a hypothetical price scenario to demonstrate this:

Date of Delivery - March 20
Dock Price - $5.00
% Over Dock - 10%
Final Price - $5.50
Amount Over Dock $.50

Date of Delivery - April 30
Dock Price - $6.00
% Over Dock - 10%
Final Price - $6.60
Amount Over Dock $.60

+ Production Responsiblity / Minimum Delivery

All members are required to deliver 7,500 pounds of pooled product each year (2,500 pounds if only participating in the California fisheries). Members who fail to do so will be assessed a minimum-delivery fee of $0.50/lb on the number of pounds short of the minimum requirement and will lose their status as members in good standing for the following year. Allowed Exemptions:

• Members who are approved as "Inactive" for the year.
• Members who have achieved Golden Halibut Award status.
• Members who pooled fish with a dock value of $18,000 or more.
• Members who demonstrate that they delivered at least 90% of their Alaskan production to SPC.
• Any member who has delivered over 50,000 pounds of pool IFQ product over the past 3 years and owns over 75,000 pounds of IFQs. It was noted that this was 50,000 pounds cumulative over the three years, not 50,000 pounds each year.

If a member has no deliveries for 3 years it will result in a forced resignation of their membership, except for Golden Halibut recipients.

Delivery Restrictions:

• Members shall not deliver SPC fish to any port other than those specified by the President/GM.
• No member shall act as a packer or buyer and deliver another’s fish to SPC in his or her own name.
• Split trips are not permissible. Separation of a trip by grade, species, or size constitutes a split trip.
• Dressed, halibut and black cod deliveries shall be subject to a 2% ice and slime deduction. These deductions are based upon the results of actual tests and independent studies. Mtn 45-91.

+ Advance Info

When you deliver and pool you receive 80% of the dock price.

Second advances will be 90% of expected final settlement.