Title
Resolution - Approval of PEC’s Annual Contribution to CFC’s Integrity Fund - T Golden
Other Info
Submitted By: Tracy Golden, CPA
Department: Financial Services
Financial Impact and Cost/Benefit Considerations: Contribution of the lesser of 5% or $10,000 from PEC’s CFC Patronage Capital refund of Cooperative funds.
Discussion
The National Rural Utilities Cooperative Finance Corporation (“CFC”) has asked Pedernales Electric Cooperative, Inc. (“PEC”) to consider participation in the Cooperative System Integrity Fund (“Fund”) by annually contributing the lesser of five percent (“5%”) or $10,000 of our CFC Patronage Capital refund.
The Fund serves as a resource to the rural electric program to support the efforts of cooperatives to resist threats to the integrity of their service territory, to protect the right of rural electric systems to provide non-electric energy services, and to assist cooperatives that are facing regulatory, judicial and legislative challenges that threaten a cooperative’s existence under the cooperative business model.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE that the Agreement to Participate in CFC’s Cooperative System Integrity Fund authorizing the payment of the lesser of 5% or $10,000 from PEC’s CFC Patronage Capital refund to “The CFC Cooperative System Integrity Fund for All Purposes” is hereby approved on an annual basis until such time as the Board may direct; and
BE IT FURTHER RESOLVED, that the Chief Financial Officer is authorized to take all such actions as needed to implement this resolution.