RTFC Consolidation Moves Forward—Expect Member Service To Remain Unmatched

The consolidation of RTFC with National Cooperative Services Corporation (NCSC) is progressing, with an expected closing date in December. Information about the closing details and timeline was sent to members in early August.

“We are on track to consolidate with NCSC and create a $1.5 billion organization to continue meeting the financial needs of the rural telecommunications industry,” Senior Vice President and Chief Banking Officer Joel Allen said. “While the RTFC name may be changing, the organization will continue to deliver the same responsive service and hassle-free loan process that our members have experienced over the last 35 years.”

The consolidation was given the green light earlier this year when it was approved by RTFC members at a special meeting in April and by the NCSC membership in June. Like RTFC, NCSC is an affiliate of the National Rural Utilities Cooperative Finance Corporation. NCSC was started in 1981 to serve the financing needs of rural utilities and their for-profit subsidiaries.

Active RTFC borrowers and investors will be automatically migrated to NCSC membership. RTFC voting members that are not active borrowers or investors were invited to submit an election form regarding the choice to become members of NCSC.

“If we don’t hear from our non-active borrowers and investors by September 29, we will issue them a full refund of their membership fee and terminate their membership,” Allen said. “Of course, should their needs change, they are always welcome to reach out to their RTFC account manager and apply for NCSC membership.”

RTFC members that hold Subordinated Capital Certificates in connection with a loan will see those certificates redeemed at face value before the closing. This payout is tentatively scheduled to be sent in late December. In January, RTFC will retire previously allocated but unretired patronage capital at a discounted value. Both of those payments will be sent via check or ACH (if the member has previously signed up for ACH deposits). Members who want to sign up for ACH deposits, which deliver payments faster and more securely, should call the Member Center at 800-424-2955.

“While there are quite a few big changes happening for RTFC members, the most important things remain the same. We will still deliver the same level of service members expect from RTFC, and all of our current staff will continue in their roles after the consolidation is complete,” Allen said. “We still have the deep knowledge of the rural telecom industry that makes working with RTFC so easy.”