Your ownership of stock or participation certificates is an investment that allows you to share in the association's earnings
through patronage refunds and/or dividends, but which is also subject to certain risks that could result in a partial or complete loss of the investment. It is not a compensating balance. The ultimate value of the stock is dependent on the future financial performance and condition of the association over time. Therefore, you cannot assume that stock will be redeemed on demand or upon a certain date or upon the happening of any event, such as a repayment of the loan (as could be the case if the investment were considered a compensating balance). You are responsible for the full amount of your loan, including the amount borrowed to pay for your stock or certificates, regardless of their book value. Members are advised to review the financial reports
of Alabama Farm Credit, the association's capitalization bylaws and other available information about the Farm Credit System, copies of which are available from the association upon request.