Republi

cofthePhi
li
ppi
nes
Congre
ssofthePhi
li
ppi
nes
Me t
roManil
a

Fourt
eenthCongr
ess
Se
c ondRegul
arSes
sion

Be
gunandhe
ldi
nMe
troMani
la,onMonday
,thet
went
y-e
ight
hdayofJ
uly
,twot
hous
ande
ight
.

Re
publ
icAc
tNo.9520      F
ebr
uar
y17,2009

ANACTAMENDI
NGTHECOOPERATI
VECODEOFTHEPHILI
PPI
NESTOBEKNOWNASTHE
"PHI
LIPPI
NECOOPERATI
VECODEOF2008"

Bei
tenac
tedbyt
heSenat
eandHous
eofRepr
esent
ati
vesoft
hePhi
li
ppi
nesi
nCongr
essas
sembl
ed:
:

SECTI
ON1.  Ar
tic
les1,2,3,4and5ofChapter1onGener
alConcept
sandPrinc
ipl
esofRe
publi
cAct
No.6938,otherwis
eknownast he"Cooper
ativ
eCodeofthePhi
li
ppine
s,"ar
ehe r
ebyamende
dt o
readasfol
lows:

CHAPTERI
GENERALCONCEPTSANDPRI
NCI
PLES

"ARTI
CLE1.
 Ti
tl
e.-Thi
sAc
tshal
lbeknownast
he"Phi
  li
ppi
neCooper
ati
veCodeof2008".

"ART.2.Dec
  l
arati
onofPol ic
y.-I ti
st hedec
laredpoli
cyoft heStat
et of
ostert hecreati
onand
growthofcoope rati
ve sasapr acti
calvehi
cl
ef orpr
omot i
ngs elf
-rel
ianc
eandhar nessi
ng
peopl
epowe rtowardst heattainme ntofeconomicdevelopme ntandsocialjust
ice.TheSt
ate
shal
lencouragethepr ivates
e ctortounde r
taketheactualformationandor ganizati
onof
cooper
ativesands hallcr e
ateanat mospherethati
sconduc iv
et othegrowthand
devel
opme ntofthe sec ooperat i
ves.

"Towar dthisend,t heGov ernme ntandalli

tsbranches,subdivi
sions,i
nstrume nt
ali
tie
sand
agenciesshallensur etheprovis
ionoftechnic
alguidance,financi
alas s
ist
anceandot her
serv
icestoe nables aidcooperat
ivestodevel
opintov i
ableandr esponsiveeconomic
enterpri
sesandt he rebybringaboutas t
rongcooperati
v emov eme ntthatisfre
efrom any
conditi
onst hatmi ghtinfri
ngeupont heautonomyoror ganizat
ionalintegri
tyofcooperat
ive
s.

"Further
,theStaterecogni
zest
hepri
ncipleofs
ubsidiari
tyunderwhic
ht hecooperati
vesec
tor
willi
nit
iateandr e
gulatewit
hinit
sownr ankst
hepr omot i
onandorganizat
ion,t
raini
ngand
re
se r
ach,auditandsupportser
vic
esr
elati
vetocooper at
ive
swithgover
nme ntassi
stance
whe r
ene ces
sary.

"ART.3.Gener
  alConcepts.-Ac oope rativei
sanaut onomousanddul yregis
teredass
ociation
ofpers
ons,withac ommonbondofi nt er
est,whohav evol
untari
lyjoinedtogethertoachie v
e
thei
rsoci
al,ec
onomi c,andc ul
tur alnee dsandas pirat
ionsbymaki nge quit
ablecontr
ibutions
tothecapit
alrequi
red,patronizingt heirproductsands ervi
cesandac cepti
ngaf ai
rshareof
theri
sksandbe nef
itsoftheunde rtakinginac c
or dancewithuniversall
yacceptedcooperative
pr
inc
ipl
es.

"ART.4.Cooper
  ati
vePr i
nci
ples.-Eve
rycooperat
iveshallc
onductit
saff
airsi
nac
cordance
withFi
lipinoc
ulture,goodvaluesandex
pe ri
enceandt heuni
v e
rsal
lyac
cepte
dpri
ncipl
esof
cooper
ationwhichinc l
ude,butarenotl
imitedto,thefoll
owing:

"(1)Vol
  untaryandOpenMember shi
p -Cooper
ati
vesarevoluntar
yorganizat
ions,
opent oallpersonsabl
etouset
heirs
ervi
cesandwill
ingtoaccepttherespons
ibil
it
ies
ofme mbe rship,wit
houtge
nder
,soci
al,r
aci
al,c
ult
ural,pol
it
icalorrel
igi
ous
disc
rimination.

"(2)Democ
  rativeMemberCont rol
 -Coope r
ativ
esaredemoc raticorganiz
ati
onsthat
arecontr
oll
edbyt hei
rme mbe rswhoac ti
velypart
ici
pateinsettingtheirpol
ici
esand
makingde c
isions.Me nandwome nservi
ngase lec
tedreprese
nt ati
ves,dir
ect
orsor
offi
cer
sareac count abletotheme mbe r
ship.Inpri
mar ycooperativ
e s
,me mbershave
equalvot
ingr ightsofone -membe r,one-
vote.Cooperati
vesatot herlevel
sare
organi
zedint hes amede moc rat
icmanne r.

"(3)MemberEc
  onomi cPartici
pation -Me mberscontr
ibuteequitablyto,and
democ rati
call
yc ontrol,thecapitaloftheircooperat
ives
.Atleastpar tofthatc api
tali
s
thecommonpr oper tyofthec ooperativ
e.Theyshallre
ceiveli
mi t
edc ompe ns
at i
onor
li
mitedi nter
est,ifany ,oncapitalsubscribedandpaidasac onditi
onofme mbe rs
hip.
Me mbe rsall
ocates urplusesforanyoral lofthefoll
owingpur poses:developingthe
cooperativebys ett
ingupr es
e rv
es,partofwhi chshouldatleastbeindi vi
sibl
e;
benefi
ttingme mbe rsinpropor ti
ont othe i
rpart
onageofthec ooperat i
ve'sbubs i
ness
;
and,suppor t
ingot he racti
vit
iesappr ovedbytheme mbe rs
hip.

"(4)Aut
  onomyandI ndependence 
-Coope rati
vesareautonomous,sel
f-hel
p
organi
z ati
onscontrol
ledbytheirme mbe r
s.Iftheyenteri
ntoaggree
me ntswithot
her
organi
z ati
ons,i
ncludi
nggov er
nme nt,orraisecapit
alfr
om exte
rnalsources
,theys
hall
dos oont ermsthatensuredemoc r
aticcontrolofthei
rme mbersandmai nt
ainthe
ir
cooperativeaut
onomy .

"(5)Educ
  ati
on,Tr ai
ningandInfor
mation 
-Cooperat
ive
sshallprovideeducati
onand
tr
ainingfort heirme mbers,e
lec
tedandappointedre
present
atives
,manage rs
,and
employ e
es ,s
ot hattheycancontri
but
ee ff
ect
ive
lyandeffi
cie
ntlytot hedev
e l
opment
oftheircoope r
at i
ves.

"(6)Cooper
  at
ionAmongCooper ativ
es -Cooper
ati
vesse
rvet
heirmembersmost
eff
e c
tiv
elyandstre
ngthenthecooperativ
emov ementbyworki
ngtoge
the
rthrough
local
,nati
onal,r
egionalandi
nternati
onalstr
uctur
es.

(
7)Conc
  ernf
orCommuni t
y -Cooper
ati
veswor
kforthes
ust
ainabl
ede
vel
opme
ntof
t
hei
rcommunit
iest
hroughpoli
cie
sapprove
dbythei
rmembers.

"ART.5.
 Def
ini
ti
onofTer
ms.–Thef
oll
owi
ngt
ermss
hal
lme
an:

"(1) Member incl
udesaper
sonei
the
rnatur
alorjur
idi
calwhoadheri
ngtot
he
princi
plesse
tf ort
hinthi
sCodeandi
ntheArti
cl
esofCooper
ati
ve,hasbe
enadmi
tte
d
byt hecooperati
veasmembe r
;
"(2) GeneralAssembly  
shal lmeant hef ullme mbershi
poft hecooperat
iveduly
assembledf orthepur pos eofe xerc
isingal lt
her i
ghtsandpe rf
ormingallthe
obligat
ionspe rt
ainingtoc ooperati
ves ,asprovidedbyt hi
sCode,it
sarti
clesof
coope r
ationandby laws :Pr ovi
ded,Thatf orcooperat
iveswithnume r
ousand
disperse
dme mbe rshi
p,t hege neralass emblymaybec omposedofde l
egatesel
ect
ed
bye achse c
tor,chapterordi s
tri
ctoft hec ooperati
veinaccordancewiththerul
esand
regulati
onsoft heCoope rativ
eDe velopme ntAuthori
ty;

"(
3)Boar
  dofDi
rec
tor
s s
hallmeanthatbodye
ntr
ustedwiththemanage
mentoft
he
af
fai
rsoft
hecoope
rat
iveunderit
sarti
cl
esofc
ooper
ationandbyl
aws;

"(4) Committee 
shal
lref
ert
oanybodyentr
ust
edwit
hspec
ifi
cfunct
ionsand
responsi
bil
it
iesundertheby
lawsorr
esol
uti
onoft
hegene
ralasse
mbl yortheboar
d
ofdirect
ors;

"(5)
 Ar
tic
lesofCooperat
ion me
ansthear
tic
lesofcoope
rat
ionr
egi
ste
redunde
rthi
s
Codeandincl
udesar e
giste
redamendmentthere
of;

"(6)
 By
laws meanst
heby
lawsr
egi
ste
redunde
rthi
sCodeandi
ncl
ude
sanyr
egi
ste
red
amendme ntthe
reof
;

"(7)Regi
  s
trat
ion 
meanstheope
rat
iveactgrant
ingjuri
dic
alpe
rsonal
it
ytoapr
opos
ed
cooperat
iveandisev
ide
ncedbyacert
if
icateofregi
str
ati
on;

"(8)Cooper
  ati
veDevel
opmentAuthori
ty 
refe
rstot
hegove
rnmentagencyi
nchar
ge
oftheregi
strat
ionandregul
ati
onofcooperat
ive
sassuc
hhere
inaf
terr
e f
err
edtosthe
Authori
ty;

"(9)
 Univ
ersal
lyAcc
ept
edPri
nci
ples 
me anst
hatbodyofc
oope
rat
ivepr
inc
ipl
es
adhere
dt oworldwi
debyc
ooperati
ves;

"(10)Repr
  esentati
veAssembly 
meanstheful
lme mbe r
shipofabodyof
repre
sentati
vese l
ectedbyeachoft
hes ec
tors
,chapterordist
rictothecooper
ati
ve
dulyasse
mbl edfort hepur
poseofexerc
isi
ngsuchpowe rslawfull
ydele
gatedunto
them bythege neralass
emblyinac
cordancewithit
sby l
aws ;

"(11)Of
  fic
ersoft
heCooper at
ive 
shallinc l
udetheme mbersoftheboardofdi
rect
ors
,
me mbe r
softhedi
ffer
e ntcommi t
teecre atedbyt hegener
alassembly,ge
neral
manage rorchi
efexe
cut i
veoff
icer,s
e c
re tary,t
reasure
randme mbersholdi
ngothe
r
posit
ionsasmaybepr ovidedf
orint heirby l
aws ;

"(12) SocialAudit 
isaprocedurewhe reinthecoope rati
veasses
se si
tssoci
alimpac t
ande thicalperfor
manc ev i
s-à-v
isitsstatedmi s
sion,v i
si
on,goalsandcodeofs oc
ial
responsibili
tyforcooperati
ve st
obee s
t abli
shedbyt heAut hor
ityinconsult
ationwi t
h
thecoope rativesec
tor.I
te nablesthecoope rati
vet ode v
elopapr oce
sswhe rebyitcan
accountf oritssoci
alperformanc eande val
uateitsimpac ti
nthec ommuni tyandbe
accountabl eforit
sdecis
ionsandac ti
onst oitsregularme mbers;

"(13)Per
  formance 
Audi
tshallre
fertoanauditontheeffic
iencyandeffe
cti
vene
ssof
thecooper
ati
veasawhole;it
smanage mentandoff
icers;anditsvar
iousres
ponsi
bil
it
y
cente
rsasbasi
sfori
mprovingindiv
idualt
eam orov
e r
allperfor
manc eandfor
 obj
ect
ive
lyi
nfor
mingt
hege
ner
alme
mbe
rshi
pons
uchpe
rfor
manc
e;

"(14)
 ASi
ngl
e-Li
ne orSi
  ngl
e-Pur
poseCooperat
iveshal
linc
ludecoope
rat
ive
undert
aki
ngacti
vit
ieswhicharerel
ate
dtoitsmai nli
neofbusines
sorpurpos
e;

"(15) Serv
iceCooperat
ives 
arethosewhichprovideanytypeofser
vic
et oitsme mber
s,
incl
udi ngbutnotli
mi t
edto,transpor
t,i
nformationandc ommunicat
ion,insuranc
e,
housing,elect
ric
,healt
hs e
rvic
e s
,educat
ion,banking,andsav
ingsandcredit;

"(16)Subs
  idiar
yCooper ati
ve 
referstot
hreeormoreprimarycoope r
ati
v es
,doingthe
samelineofbus iness,organiz
edatt hemunici
pal
,prov
inci
al,ci
ty,speci
al
me t
ropoli
tanpol it
icalsubdivi
sion,orec
onomiczonescr
eatedbyl aw,regis
ter
edwi th
theAuthoritytounde rtakebusinessact
ivi
ti
esi
nsupportofitsme mber-cooper
ativ
e s
."

SEC.2.
 Ar
tic
les6,7,9,10,11,12,13,14,16,17,18,20,21,23,24and25ofChapterI
Ion
Organi
zati
onandRe gist
rati
onofthes ameCodear eherebyame nde
dtoreadasfol
lows:

CHAPTERI
I
ORGANI
ZATI
ONANDREGISTRATI
ON

"ART.6.
 Pur
posesofCooperat
ives
.–Ac
oope
rat
ivemaybeor
gani
zedandr
egi
ste
redf
orany
oral
lofthefol
lowingpurpose
s:

"(
1)Toe
ncour
aget
hri
ftands
avi
ngsmobi
li
zat
ionamongt
heme
mbe
rs;

"(
2)Togener
atef
undsande
xte
ndc
redi
ttot
heme
mbe
rsf
orpr
oduc
tiv
eand
pr
ovi
dentpur
pose
s;

"(
3)Toe
ncour
ageamongme
mbe
rss
yst
emat
icpr
oduc
tionandmar
ket
ing;

"(
4)Topr
ovi
degoodsands
erv
ice
sandot
herr
equi
reme
ntst
otheme
mbe
rs;

"(
5)Tode
vel
ope
xpe
rti
seands
kil
lsamongi
tsme
mbe
rs;

"(
6)Toac
qui
rel
andsandpr
ovi
dehous
ingbe
nef
it
sfort
heme
mbe
rs;

"(
7)Toi
nsur
eagai
nstl
oss
esoft
heme
mbe
rs;

"(
8)Topromot
eandadv
anc
ethee
conomi
c,s
oci
alande
duc
ati
onals
tat
usoft
he
member
s;

"(9)Toestabl
ish,own,le
aseorope
ratecooperati
vebanks,c
ooperati
vewholes
aleand
retai
lcomplex
es ,i
nsur
anceandagr
icul
tural
/industr
ialpr
ocess
ingenter
pri
ses
,and
publicmarket
s;

"(
10)Toc
oor
dinat
eandf
aci
li
tat
etheac
tiv
iti
esofc
oope
rat
ive
s;

"(
11)Toadv
ocat
efort
hec
aus
eoft
hec
oope
rat
ivemov
eme
nts
;

"(
12)Toe
nsur
ethev
iabi
li
tyofc
oope
rat
ive
sthr
ought
heut
il
iz
ati
onofne
w
 t
echnol
ogi
es;

"(
13)Toencour
ageandpr
omoteself
-hel
porsel
f-e
mpl
oyme
ntasane
ngi
nef
or
ec
onomicgr
owthandpover
tyal
lev
iati
on;and

"(14)Tounder
takeanyandallot
herac
tiv
iti
esf
ort
hee
ffe
cti
veande
ffi
ci
ent
implement
ati
onoftheprovi
si
onsofthi
sCode.

"ART.7.
 Obj
ecti
vesandGoalsofaCooperat
ive.–Thepri
maryobje
ctiveofe
veryc
ooper
ativ
e
ist
ohe l
pimprovethequal
it
yoflif
eofitsme mbers
.Towardst
hisend,thec
ooper
ati
veshal
l
aimto:

"(a)Provi
degoodsands ervi
cestoi t
sme mberstoe nablethemt oatt
aini
ncre
ased
income,savi
ngs
,invest
me nts,producti
vit
y,andpur chasi
ngpowe r,andpr
omot e
amongt hemsel
vesequitabl
edi s
tributi
onofne ts
ur plusthroughmax i
mum uti
li
zat
ion
ofe c
onomiesofscal
e,cost-
sharingandr i
sk-s
haring;

"(
b)Pr
ovi
deopt
imum s
oci
alande
conomi
cbe
nef
it
stoi
tsme
mbe
rs;

"(
c)Te
acht
heme
ffi
ci
entway
sofdoi
ngt
hingsi
nac
oope
rat
ivemanne
r;

"(
d)Pr
opagat
ecoope
rat
ivepr
act
ice
sandne
wide
asi
nbus
ine
ssandmanage
ment
;

"(e)Al
lowtheloweri
ncomeandl
esspr
ivi
lege
dgr
oupst
oinc
reas
ethe
irowne
rshi
pin
thewealt
hofthenati
on;and

"(
f)Cooper
atewi
ththegove
rnme nt
,othe
rcooper
ati
vesandpeopl
e-or
iented
or
ganiz
ati
onstof
urt
hertheatt
ainmentofanyoft
heforegoi
ngobj
ecti
ves.

"ART.8.
 Cooperati
vesNotinRestraintofTr
ade.–Noc ooperat
iveormethodoractt
he r
eof
whichcomplieswiththi
sCodes hallbedeemedac ons
pirac
yorc ombi
nationinr
estr
aintof
tr
adeorani l
legalmonopoly,oranat te
mpttoless
e nc
ompe tit
ionorf
ixpric
esar
bitr
aril
yin
vi
olat
ionofanyl awsofthePhili
ppines.

"ART.9.Cooper
ati
vePower
sandCapac
iti
es.–Ac oope
rat
iver
egi
ste
redunde
rthi
sCodes
hal
l
havethefol
lowi
ngpowers
,right
sandc
apacit
ies
:

"(
1)Tot
hee
xcl
usi
veus
eofi
tsr
egi
ste
redname
,tos
ueandbes
ued;

"(
2)Ofs
ucc
ess
ion;

"(3)Toame
ndi
tsar
tic
lesofc
oope
rat
ioni
nac
cor
danc
ewi
tht
hepr
ovi
si
onsoft
his
Code;

"(4)Toadoptby
lawsnotcontr
arytolaw,mor al
sorpubl
icpol
ic
y,andt
oame
ndand
re
pe alt
hesameinacc
ordancewiththisCode
;

"(5)Topur chase
,r e
ce ive
,takeorgrant,hold,c
onv e
y,sel
l,l
eas
e,pledge,mortgage,
andot he
rwi sedealwi thsuchrealandpersonalproper
tyasthetr
ans ac
tionofthe
lawfulaff
airsofthec oope r
ati
vemayr easonabl
yandne cess
ari
lyre
qui r
e,subj
e ctt
o
thelimit
ationsprescribedbylawandt heCons ti
tuti
on;
 "(
6)Toe
nte
rint
odi
vis
ion,me
rge
rorc
ons
oli
dat
ion,aspr
ovi
dedi
nthi
sCode
;

"(7)Tof
orms
ubs
idi
aryc
oope
rat
ive
sandj
oinf
ede
rat
ionsoruni
ons
,aspr
ovi
dedi
n
thi
sCode;

"(8)Toav ai
lofloans ,beentitl
edtocreditandt oacceptandr ec
e i
vegrants
,donat i
ons
andas si
stancefrom f orei
gnanddome sti
csour ces
,subjectt
ot heconditi
onsofs ai
d
loans,credits
,grants,donat i
onsorassi
stancet hatwil
lnotunde rminetheaut onomy
ofthec oope r
ati
v e.TheAut hori
ty,uponwr itt
enr equest
,shallprovi
dene c
essary
assi
stancei nthedoc ume ntaryrequi
reme ntsfortheloans,cr
e di
t,grant
s,donations
andot herf i
nancialsupport;

"(9)Toav ai
lofpref
erenti
alrightsgrant e
dt ocooperative
sunde rRepubli
cAc tNo.
7160,otherwis
eknownast heL ocalGov ernmentCode ,andot he
rlaws,parti
cularl
y
thoseinthegrantoffr
anchisest oestabli
sh,constr
uct,ope r
ateandmai ntai
nf er
ries
,
whar v
es,marketsorsl
aught e
rhous esandt oleasepublicutil
it
ies,i
ncl
udingac c
essto
extensi
onandon- si
teres
earchs ervi
ce sandfacil
it
iesrelat
edt oagri
cul
tureandf is
hery
acti
vit
ies;

"(
10)Toorgani
zeandoperates
choolsi
naccordanc
ewithRepubli
cAc tNo.9155,
Gove
rnanc
eofBasicEduc
ationActof2001andotherpe
rti
nentlaws;and

"(11)Toexerc
ises
uchothe
rpowersgr
antedbythisCodeorne
ces
sar
ytoc
arr
youti
ts
purposeorpurpos
esass
tatedi
nit
sArt
icl
esofcooperat
ion.

"ART.10.Or
  ganiz
ingaPr i
mar yCooperat
ive.–Fi
ft
een(15)ormor enaturalpersonswhoar e
Fi
li
pinoc i
ti
zens
,oflegalage,havi
ngac ommonbondofi nter
estandar eactual
lyr e
sidi
ngor
workingintheinte
nde dareaofoperati
on,mayorgani
zeapr i
maryc ooperati
veunde rthi
s
Code:Pr
  ovi
ded,Thataprospecti
veme mbe rofapri
marycooperat
ivemus thavec omplete
da
Pre-
Me mbe r
shi
pEduc ati
onSe minar(PMES).

"Anyne wl
yor ganiz
e dpri
mar ycooperati
vemayber egi
stere
dasmul tipurposecooperati
ve
onlyaft
ercompl i
anc ewit
ht hemi ni
mum r equi
r e
me ntsformultipur
pos ecooperati
vestobe
setbytheAuthority.Asi
ngle-purposecooperat
ivemayt ransfor
mi ntoamul tipurposeormay
cr
e at
esubsi
diariesonlyaft
eratleasttwo( 2)yearsofoperati
ons.

"ART.11. Economi cSurv ey.-Ev e

r ygroupofi ndivi
dual sorcooper at
ivesintendingtoforma
cooperati
veunde rt hi
sCodes halls ubmittotheAut horit
yage nerals t
ateme ntdescr
ibi
ng,
amongot he rsthestructureandpur pose
soft hepr oposedcoope rati
v e:
 Pr
ov i
ded,Thatthe
str
uctureandac t
uals t
affingpat ternofthec oope r
at i
veshal
linc l
udea
bookkeepe r
; Provi
ded, f
ur ther,Thatt heyshallnotbeal lowedt oope ratewi t
houtthe
necess
arype rsonnelands hallals
os ubmitane conomi csurv
e y,i
ndi cati
ngthe rei
ntheareaof
operati
on,thes iz
eofme mbe rship,andot herpe r
tinentdatainaf or
matpr ovidedbythe
Authorit
y.

"ART.12.
 Li
abi
li
ty.–Ac
oope
rat
ivedul
yre
gis
ter
edunde
rthi
sCodes
hal
lhav
eli
mit
edl
iabi
li
ty.

"ART.13.Ter
  m.–Ac oope rat
iveshallex
istforape riodnotexc
eedingfif
ty(50)y earsf
rom the
dateofregist
rat
ionunl esssoonerdissol
veorunl es
ss ai
dper
iodisexte
nde d.Thec oope
rati
ve
ter
m,asor igi
nall
ys t
atedi nthearti
c l
esofc ooperati
on,maybee xte
ndedf orperiodsnot
excee
dingfift
y(50)y earsinanys i
ngleinstanc ebyaname ndmentofthear ti
cle
sof
cooperat
ion,inaccordancewi ththisCode:Pr
  ovi
ded,Thatnoextensi
onc anbemadee arl
ier
t
hanfive(5)year
spriort
otheor
igi
nalors
ubse
quente
xpirydat
e/dat
esunl
esst
herear
e
j
ust
if
iablereas
onsforanear
li
erext
ensi
onasmaybedete
rminedbytheAut
hori
ty.

"ART.14.Ar
  t
icl
esofCooperati
on.–( 1)Allcooper
ati
vesappl
yingforregis
trati
onshallf
il
e
withtheAuthori
tytheart
icl
esofc ooperat
ionwhichshal
lbesignedbye achoftheorganiz
ers
andacknowledgedbythemi fnaturalpers
ons,andbythechai
r pe
rsonsors ec
retar
ies
,if
jur
idi
calpers
ons,befor
eanot arypublic
.

"(
2)Thear
tic
lesofc
oope
rat
ions
hal
lse
tfor
th:

"(
a)Thenameoft
hec
oope
rat
ivewhi
chs
hal
linc
ludet
hewor
dcoope
rat
ive
;

"(b)Thepurpos
eorpur
pos
esands
copeofbus
ine
ssf
orwhi
cht
hec
oope
rat
ivei
stobe
re
giste
red;

"(
c)Thet
erm ofe
xis
tenc
eoft
hec
oope
rat
ive
;

"(
d)Thear
eaofope
rat
ionandt
hepos
taladdr
ess
esofi
tspr
inc
ipalof
fi
ce;

"(
e)Thename
s,nat
ional
it
y,andt
hepos
taladdr
ess
esoft
her
egi
str
ant
s;

"(
f)Thec
ommonbondofme
mbe
rshi
p;

"(
g)Thel
is
tofname
soft
hedi
rec
tor
swhos
hal
lmanaget
hec
oope
rat
ive
;and

"(
h)Theamountofit
ssharecapi
tal
,thenamesandresi
dencesofi
tscont
ribut
orsand
astat
ementofwhe
therthecoope
rati
veispr
imary,s
econdar
yort e
rti
aryi
n
ac
cordanc
ewithAr
tic
le23hereof
.

"(3)Thear
tic
lesofcoope
rat
ionmayal
soc
ont
ainanyot
herpr
ovi
si
onsnoti
ncons
ist
entwi
th
thi
sCodeoranyr e
latedl
aw.

"(4)Four(4)copi
ese
achofthepropos
edart
icl
esofc
oope
rat
ion,byl
aws,andthegener
al
st
ateme ntr
equire
dunderAr
tic
le11ofthi
sCodeshal
lbes
ubmitte
dtotheAuthori
ty.

"(5)Noc oope rati

ve,othert hanac ooper ati
veuni onasde sc
r i
be dunde rArtic
le25he reof,
shallber egi s
tere
dunl essthear t
icl
e sofc ooperationi
sac compani edwi ththebondsoft he
account ableof f
icer
sandas wor nstateme nt
soft hetreasurerelect
e dbyt hesubscri
bers
showi ngt hatatleasttwe nty-fi
veperc
  ent um (25%)oft heaut horizedsharec api
talhasbe e
n
subscribedandatl easttwe nty-
fiv
e perc entum( 25%)oft het otalsubscri
ptionhasbe en
paid:Pr
  ovided,Thatinnoc aseshallthepai d-ups har
ec apit
albel essthanF if
teenthous and
pesos( P15, 000.
00).

"TheAuthorit
ys hal
lper
iodi
cal
lyasses
stherequire
dpaid-
upsharecapit
alandmayincr
eas
eit
ever
yfi
ve( 5)yearswhennecess
aryuponc onsul
tat
ionwit
hthecooperati
vesec
torandt
he
Nati
onalEconomi candDevel
opme ntAuthori
ty(NEDA)
.

"ART.15.
 Byl
aws.–(1)Eac
hcooperat
ivet
oberegi
ste
redundert
hisCodeshal
ladoptby
laws
notinc
onsis
tentwit
htheprov
isi
onsofthi
sCode
.Thebylawss
hallbefi
ledatt
hesametimeas
theart
icl
esofcoope
rati
on.
"(
2)Theby
lawsofe
achc
oope
rat
ives
hal
lpr
ovi
de:

"(a)Thequal
if
icat
ionsforadmis
siontome mbe
rshi
pandthepaymentt
obemadeor
inte
restt
obeacquiredasacondit
ionsfort
heexer
cis
eoft
herightofmembe
rshi
p;

"(
b)Ther
ight
sandl
iabi
li
ti
esofme
mbe
rshi
p;

"(
c)Thec
irc
ums
tanc
esunde
rwhi
chme
mbe
rshi
pisac
qui
red,mai
ntai
nedandl
ost
;

"(
d)Thepr
oce
dur
etobef
oll
owe
dinc
ase
soft
ermi
nat
ionofme
mbe
rshi
p;

"(e)Thecondi
ti
onsunde
rwhi
cht
het
rans
ferofas
har
eori
nte
res
toft
heme
mbe
rs
shallbeper
mitt
ed;

"(f)Therulesandpr oc
eduresont heagenda,ti
me ,plac
eandmannerofcal
li
ng,
convening,conduct
ingme e
tings,quorum requi
reme nts
,vot
ingsy
ste
ms,andother
mat t
ersrelati
vetothebusi
ne s
saffair
softhege ne
r alas
sembly
,boar
dofdir
ector
s,
andc ommi tt
ees;

"(g)Thegeneralconductoftheaffair
softhecooper
ati
ve,i
ncl
udi
ngthepowersand
duti
esofthege neralass
embly,theboardofdire
ctor
s,c
ommi t
tee
sandtheof
fi
c e
rs,
andtheirqual
ific
ationsanddisquali
fi
cat
ions;

"(h)Themanneri
nwhi
cht
hec
api
tal
,mayber
ais
edandt
hepur
pos
esf
orwhi
chi
t
canbeuti
li
zed;

"(
i)Themodeofc
ust
odyandofi
nve
stme
ntofne
tsur
plus
;

"(
j)Theac
count
ingandaudi
ti
ngs
yst
ems
;

"(
k)Themanne
rofl
oani
ngandbor
rowi
ngi
ncl
udi
ngt
hel
imi
tat
ionst
her
eof
;

"(
l)Theme
thodofdi
str
ibut
ionofne
tsur
plus
;

"(
m)Themanne
rofadopt
ing,ame
ndi
ng,r
epe
ali
ng,andabr
ogat
ingby
laws
;

"(n)Ac
onc
il
iat
ionorme di
ati
onme chani
smf
ortheamic
abl
eset
tle
me ntofdi
sputes
amongmembers,di
rec
tors
,off
ice
rsandcommit
teemember
softhecooper
ati
ve;and

"(
o)Ot
hermat
ter
sinc
ide
ntt
othepur
pos
esandac
tiv
iti
esoft
hec
oope
rat
ive
.

"ART.16. Regi
  st
rati
on.¬–Ac oope r
at i
vefor me dandor ganizedunde rthi
sCodeac quires
jur
idicalpe rs
onalityfrom thedat etheAut horityissuesac erti
fic
ateofr egi
str
ationunde rits
off
ici
als e al.Allappli
cationsforregistr
ations hallbef i
nallydisposedofbyt heAut hori
ty
withi
nape ri
odofs ix
ty( 60)daysf r
om t hef i
li
ngt he r
eof,otherwiset heappli
cationisdeeme d
approve d,unl essthecaus eofthede layisat t
ributabletot heapplicant:Pr
  ovi
ded,Thatinc ase
ofade ni aloft heapplicati
onf orregist
ration,anappe alshalll
iewi ththeOf f
iceofthe
Presi
de ntwi thinninety(90)day sfrom rece i
ptofnot iceofsuc hde nial
:Pr
  ovi
ded, f
urther,
Thatfailur eoft heOfficeofthePr esidentt oactont heappe alwi thinninety(90)daysfrom
thefil
ingt hereofshallme anappr ovalofs aidapplicati
on.
"ART.17.Cer
  tifi
cateofRegi
str
ation.–Ac e
rtif
icateofr
e gi
str
ati
onissuedbytheAuthori
ty
underit
soffi
cialse
alshal
lbeconc l
usi
veevidencethatthecooperat
ivether
einme nt
ione
dis
dul
yr e
gist
eredunlessiti
sprovedthattheregi
strati
onthereofhasbeencancel
led.

"ART.18. AmendmentofArtic
lesofCooperat
ionandBy laws.–Unle s
sot her
wiseprescri
bed
bythisCodeandf orle
git
imatepurposes
,anyprovi
sionormat t
erstatedinthearti
cle
sof
cooperat
ionandbyl awsmaybeame ndedbytwo-thir
ds( 2/3)vot
eofal lthemembe rswith
voti
ngr i
ghts,wi
thoutprej
udicetotheri
ghtofthedissenti
ngme mbe rstoe x
erc
isetheirri
ght
towithdrawt he
irme mbers
hipunde rAr
tic
le30.

Botht heor igi

nalandame nde dar ti
clesand/ orby lawss hallcontainallpr ovi
sionsr equire
dby
lawt obes e
touti nthearticl
e sofc ooper ationandbyl aws .Ame ndme ntsshal
lbei ndic
atedby
unde rscori
ngorot he r
wiseappr opriatel
yi ndi cat
ingt hec hangeorc hange smadeandac opyof
theame nde dart
icle
sorame nde dby l
awsdul yc ertif
iedunde roathbyt hecoope rative
secr
e t
ar yandamaj orit
yoft hedi rectorss tatingthef actthats aidame ndme ntor
ame ndme ntstothear t
icl
esofc oope r
ationand/ orby l
awshav ebe endul yappr ovedbyt he
requiredv oteoftheme mber s.Allame ndme ntstot hear ti
cleofc oope rati
onand/ orbylaws
shallbes ubmi t
tedtot heAut hor i
ty.Theame ndme ntsshallt akeeffectuponi tsappr ovalby
theaut horityorwi t
hinthirty( 30)day sfr om t hedat eoff i
lingthe r
e ofifnotac te
duponby
theAut hor i
tyforac ausenotat tributablet ot hec ooper ati
ve.

"ART.19.Cont
  ractsExecut
edPr iort
oRegis
trati
onandEffec t
sTher eof.–Contr
ac t
sexecut
ed
betweenprivat
epe rsonsandc ooper
ati
vespri
ortotheregistrati
onoft hecooperati
veshal
l
remainvali
dandbi ndingbet weenthepart
iesanduponre gistr
ationofthecoope r
ativ
e.A
for
malwr it
tenc ontr
actshallbeadoptedandmadei nt
hec ooperative
’snameoroni t
sbehal
f
pri
ortoitsregi
strati
on.

"ART.20. Div
isi
onofCooper atives.–Anyr egiste
redcooperativ
emay ,byar e
soluti
on
approvedbyav oteofthree-four t
hs(3/4)ofal ltheme mberswi t
hvotingri
ghts,presentand
consti
tut
ingaquor um,r es
olvet odivi
deitselfintothetwo( 2)ormor ecooperati
ves.The
procedureforsuchdivi
sionshal lbepresc
ribedi ntheregul
at i
onsoftheAuthor i
ty:
 Provided,
Thatallt
her equir
eme ntssetfor t
hinthisCodehav ebeencompl i
edwi t
hbyt hene w
cooperat
ives:
 Prov
ided,f
 ur
ther ,Thatnodivisionofac oope
r ati
veinfraudofcredit
or sshallbe
vali
d.

"ART.21.Mer
  gerandConsoli
dati
onofCooperat
ives
.–(1)Two(
2)ormor ec
ooper
ati
vesmay
me r
geintoasingl
ecooperat
ivewhic
hshalle
itherbeoneoft
hecons
tit
uentc
oope
rati
vesor
theconsol
idat
edcooperat
ive
.

"(2)Nome rge
rorc onsol
idati
ons hal
lbevalidunle
s sapprovedbyathree-
fourt
hs(3/4)vote
ofalltheme mbe rswi t
hv ot
ingrights
,presentandc onst
ituti
ngaquorum ofeachofthe
consti
tuentcoope rati
vesatseparategener
alassembl ymee ti
ngs
.Thedis
senti
ngme mbers
shal
lhav etherightt oexerc
isetheirr
ighttowithdrawt heirmembers
hippursuanttoArti
cl
e
30.

"(3)TheAuthorit
yshallis
suetheguideli
nesgoverni
ngthepr
oce dur
eofme r
geror
consol
idat
ionofcooperati
ves.I
nanyc ase,t
heme rgerorc
ons
olidati
onofcooper
ative
s.I
nany
case,t
heme rge
rorcons ol
idati
onshallbeeffe
cti
veuponthei
ssuanceofthecer
tif
icat
eof
me r
gerorconsoli
dati
onbyt heAuthority
.

"ART.22.
 Eff
ect
sofMergerandCons
oli
dat
ion.–Themer
gerorc
ons
oli
dat
ionofc
oope
rat
ive
s
shal
lhavethefol
lowi
ngeffec
ts:
 "(1)Thec onsti
tuentcooperat
ive
sshal
lbecomeas i
ngl
ecoope
rati
vewhi c
h,incas
eof
me r
ger,shallbethesurviv
ingcooper
ati
ve,and,i
ncaseofc
onsol
idat
ion,shal
lbethe
consol
idatedcoope r
ativ
e;

"(2)Thesepar
ateex
ist
enceofthecons
tit
uentcoope
rat
ive
sshal
lce
ase
,ex
ceptt
hatof
thesurv
ivi
ngortheconsol
idat
edcooper
ativ
e;

"(
3)Thes ur
viv
ingortheconsol
idat
edcoope
rat
iveshallposs
essaltheass
ets
,right
s,
pr
ivi
lege
s,immuniti
esandfranc
hisesofe
achoftheconsti
tuentcooper
ati
ves;

"(
4)Thes ur
viv
ingortheconsol
idat
edcoope
rat
iveshallposs
essallt
heass
ets
,ri
ghts
,
pr
ivi
lege
s,immuniti
esandfranc
hisesofe
achoftheconsti
tuentcooper
ati
ves
;and

"(5)Thes urvi
vingort hecons oli
datedcooperativeshallber esponsiblef
orallthe
li
abili
tie
sandobl i
gationofe ac hofthecons t
ituentcoope rati
ve sinthesamemanne r
asifsuchsurvivi
ngorc onsol
idatedcooperativehadi tsel
fincur re
ds uchli
abil
it
iesor
obli
gations.Anyclai
m,ac t
ionorpr ocee
dingpe ndingbyoragai nstanysuch
consti
tuentcooperati
v esmaybepr osec
ut edbyoragai nstt hesur vi
vingor
consoli
datedcoope r
ative,asthec asemaybe .Ne itherther i
ghtsofc redi
tor
snorany
li
enupont hepropertyofanys uchconsti
tuentc ooperati
ve sshallbeimpairedbysuch
me rgerorconsoli
dation.

"ART.23.Ty
  peandCat
egori
esofCooperati
ves
.–(
1)Ty
pesofCoope
rat
ive
s–Coope
rat
ive
s
mayfallunderanyoft
hefol
lowingtype
s :

"(a)Cr
  editCooperat
ive 
isonethatpromotesandundert
akessavi
ngsandlending
serv
icesamongi tsmembe rs
.Itgenerat
esac ommonpooloffundsinordertoprovi
de
fi
nancialassi
stancet
oi t
sme mbersforproducti
veandpr
ovidentpurpos
es;

"(
b) Consumer
sCooperati
ve 
isoneofthepri
marypur
poseofwhi
chi
stopr
ocur
eand
di
str
ibutecommodi
tiestomembe rsandnon-me
mbe r
s;

"(c)
 Produc ersCooperative 
isonethatunde rt
akesjointpr oduc t
ionwhe ther
agri
culturalori ndust
rial.I
tisforme dandope r
atedbyi tsme mbe r
st ounde r
takethe
productionandpr oce
ssingofr awmat er
ial
sorgoodspr oduc edbyi tsme mbe r
sinto
fi
nishe
dorpr ocess
edpr oductsforsalebythecooperativet oitsme mbe rsandnon-
me mbe rs.Anye ndproduc toritsderivat
iveari
si
ngf r
om t her awmat eri
alsproduced
byitsme mbe rs
,soldinthenameandf ortheaccountoft hec ooperativ
e,shallbe
deemedapr oductofthec ooperati
veandi tsmembe rs;

"(d)
 Marketi
ngCooper
ati
ve 
isonewhichengage
sint
hes
uppl
yofpr
oduc
tioni
nput
s
tome mbersandmarket
sthe
irproduc
ts;

"(e)Ser
  v
iceCooperati
ve 
isonewhiche ngagesinme dic
alanddentalcare
,
hospit
ali
zati
on,trans
portat
ion,i
nsurance,housing,l
abor,el
ect
ricl
ightandpowe
r,
communi cat
ion,prof
essi
onalandotherse r
vic
es;

"(
f)Mul
  ti
purpos
eCooperat
ive 
isonewhichcombi
nest
wo(
2)ormor
eoft
hebus
ine
ss
ac
tiv
iti
esoft
hesedi
ff
erenttype
sofc oope
rat
ive
s;

"(
g)Adv
  ocac
yCooper
ati
ve 
isapr
imar
ycoope
rat
ivewhi
chpr
omot
esandadv
ocat
es
c
ooperat
ivi
sm amongi tsme mber
sandt hepubl
ict
hroughsoci
all
y-or
iente
dpr oj
ect
s,
e
ducat
ionandt r
aining,re
searchandcommuni c
ati
on,andothersi
milaract
ivi
tie
sto
r
eachouttoit
sintendedbe nef
ici
ari
es;

"(h)Agr
  ari
anReform Cooperati
ve 
isoneorgani
zedbymar gi
nalfar
me rsmaj
orit
yof
whichareagrar
ianreform benefi
ci
arie
sforthepurposeofdevel
opinganappropri
ate
sy
s t
em oflandt
e nur
e,landde v
elopment,l
andconsoli
dati
onorlandmanage mentin
areascove
redbyagrarianref
orm;

"(i)
 Cooperat
iveBank 
isoneorgani
zedforthepri
marypur
poseofpr
ovi
dingawi
de
rangeoffinanci
alser
vic
estocooperat
ivesandthe
irmembers
;

"(
j)Dai
  ryCooper
ati
ve i
sonewhos
eme mber
sar
ee ngagedintheproduc
tionoff
res
h
mil
kwhichmaybepr oce
sse
dand/ormar
ket
edasdairyproduct
s;

"(k)
 Educat
ionCooperati
ve 
isoneorganiz
edfort
hepr i
marypurposeofowningand
operat
ingli
cens
ede ducat
ionali
nsti
tuti
onsnotwi
ths
tandingtheprovi
si
onsof
Republi
cActNo.9155,otherwiseknownastheGovernanceofBasi
cEducat
ionActof
2001;

"(l)
 El
ectri
cCooperati
ve 
isoneorgani
zedforthepr
imar ypurpos
edofunde rt
aki
ng
powe rgenerat
ions
,util
izi
ngrene
wabl eener
gysourc
es,incl
udinghybri
ds ys
tems,
acquisi
ti
onandope rati
onofsubtrans
missi
onordist
ributi
ont oi
tshousehold
me mbe r
s;

"(m) Financ
ialServi
ceCooperat
ive 
isoneorgani
zedfort
hepri
mar ypur
pos
eof
engaginginsavingsandcredi
tservi
cesandotherfi
nanci
als
erv
ice
s;

"(
n)Fi
  s
hermenCooper
ati
ve 
isoneorganiz
edbymargi
nali
zedfi
sherme
ninl
ocal
it
ies
whos
epr oduc
tsar
emarket
ede i
the
rasf r
eshorpr
oces
sedproduct
s;

"(
o)Heal
  t
hSer
vic
esCooper
ati
ve i
soneorgani
zedfort
hepr
imar
ypur
pos
eof
pr
ovi
dingmedi
cal
,dent
alandotherheal
thser
vic
es;

"(p)
 Housi
ngCooperati
ve 
isoneorgani
zedtoas
sis
torprovi
deac
cesstohousi
ngfor
thebenef
itofi
tsregul
arme mberswhoacti
vel
yparti
ci
patei
nthesavi
ngsprogram f
or
housi
ng.I
tisco-ownedandc ont
rol
ledbyit
sme mbers
;

"(q)I
 ns
ur anceCooper
ativ
e i
soneengage
dint
hebus
ine
ssofi
nsur
ingl
if
eandpov
ert
y
ofcooperativ
esandtheirmembers
;

"(r
) Tr
ansportCooperati
ve i
sonewhi c
hincl
udesl
andandse
atr
anspor
tati
on,li
mit
ed
tosmallves
sels
,asdefinedorclas
sif
iedundert
hePhi
li
ppi
nemari
ti
mel aws,or
gani
zed
undertheprovis
ionsofthisCode;

"(s
) WaterSer
vic
eCooperat
ive 
isoneorgani
zedtoown,ope
r at
eandmanagewater
s
sys
temsfortheprov
isi
onanddistri
but
ionofpotabl
ewaterforit
smembersandt
heir
househol
ds;

"(
t)Wor
  ker
sCooper
ati
ve 
isoneorgani
zedbywor
kers,i
ncl
udi
ngthese
lf-
employe
d,
whoareats
ametimetheme mber
sandowne r
softheente
rpr
ise
.It
spri
ncipal
 pur
posei
stoprov
ideempl
oymentandbusines
sopportuni
ti
est
oit
sme
mbe
rsand
managei
tinac
cordanc
ewit
hcooperat
ivepri
nci
ple
s;and

"(
u)Ot
hert
ype
sofc
oope
rat
iveasmaybede
ter
mine
dbyt
heAut
hor
ity
.

"(2)
 Cat
egoriesofCooperat
ive 
–Cooperat
ive
sshal
lbec
ate
gor
ize
dac
cor
dingt
ome
mbe
rshi
p
andterr
itor
ialconsi
derat
ionsasfol
lows
:

"(
a)I
nte
rmsofme
mbe
rshi
p,c
oope
rat
ives
hal
lbec
ate
gor
ize
dint
o:

"(
i)Pr
  i
mar
y –Theme
mbe
rsofwhi
char
enat
uralpe
rsons
;

"(
ii
)Sec
  ondar
y –Theme
mbe
rsofwhi
char
epr
imar
ies
;and

"(
ii
i)
 Ter
tiar
y –Theme
mbe
rsofwhi
char
ese
condar
ycoope
rat
ive
s;and

"(b)Inter
msofte
rri
tor
y,c
oope
rat
ivess
hal
lbecategor
izedac
cor
dingtoareasof
operat
ionswhi
chmayormaynotcoi
nci
dewit
ht hepoli
ti
cals
ubdiv
isi
onsofthe
country
.

"ART.24.
 Func
tionsofaFeder
ationofCooper
ati
ves
.–Af
ede
rat
ionofc
oope
rat
ive
sshal
l
undert
akethefoll
owingfunct
ions:

"(a)Toc arr
yonanyc ooperati
veent
erpri
seauthori
zedunderArti
cl
e6that
compl ementsaugments,orsuppl
ementsbutdoesnotconfl
ict
,comple
tewit
h,nor
supplantthebusine
ssore c
onomicacti
vit
iesofit
sme mbers
;

"(
b)Tocarryon,encourage
,andas
sis
teduc
ati
onalandadv
isor
ywor
kre
lat
ingt
oit
s
membercooperat
ive
s ;

"(c)Torenderser
vic
esdes
ignedtoencouragesi
mpl i
ci
ty,ef
fi
cie
nc y
,andeconomyin
theconductofthebusi
nes
sofitsmembe rcooperat
ivesandtofaci
li
tat
ethe
implementat
ionofthei
rbookkeepi
ng,accounti
ng,andothersyst
emsandpr oc
edur
es;

"(d)Topr
int,publ
is
h,andci
rcul
ateanynewspaperorot
herpubl
ic
ati
oni
nthe
int
eres
tofit
sme mbercoope
rati
vesandent
erpri
ses;

"(
e)Toc
oor
dinat
eandf
aci
li
tat
etheac
tiv
iti
esofi
tsme
mbe
rcoope
rat
ive
s;

"(f)Toent
eri nt
ojoi
ntvent
ureswi
thnati
onalorint
ernat
ionalcooper
ati
vesofot
her
countri
esi
nt hemanufac
tureands
aleofproduc
tsand/orser
vic
e si
nthePhil
ippi
nes
andabroad;and

"(
g)Tope
rfor
msuc
hot
herf
unc
tionsasmaybene
ces
sar
ytoat
tai
nit
sobj
ect
ive
s.

"Afeder
ati
onofcoope
rat
ivesmayber
egi
ste
redbyc
arr
yingoutt
hef
ormal
it
iesf
or
re
gis
trat
ionofac
ooperat
ive
.

"Regis
ter
edcooper
ati
vesmayorgani
zeaf
ede
rat
ionac
cor
dingt
othet
ypeofbus
ine
ssac
tiv
ity
engagedinbythec
ooperat
ive
s.
 "ART.25. Cooperati
veUnions.–Re gis
ter
edc ooper
ati
vesandfederati
onsattheappropri
ate
le
v e
lsmayor gani
zeorjoi
nc ooperati
veunionstorepre
sentt
hei nt
e r
estandwe l
far
eofall
typesofcoope rat
ive
satthepr ovi
ncial
,ci
ty,regi
onal
,andnati
onallevels
.Cooperat
iveunions
mayhav et hefoll
owingpurpos e
s:

"(
a)Tor
epr
ese
nti
tsme
mbe
ror
gani
zat
ions
;

"(b)Toacqui
re,anal
yze
,anddis
seminat
e,e
conomic,s
tati
sti
cal,andot
her
inf
ormationr
elati
ngtoitsme
mbe r
sandtoallt
ype
sofc ooperati
veswi
thi
nit
sar
eaof
operat
ion;

"(c)Tosponsorst
udie
sinthee
conomic
,legal
,fi
nanc
ial
,soc
ialandot
herphas
esof
cooperat
ion,andpubl
isht
heres
ult
sther
eof;

"(
d)Topr
omot
etheknowl
edgeofc
oope
rat
ivepr
inc
ipl
esandpr
act
ice
s;

"(
e)Tode
vel
opt
hec
oope
rat
ivemov
eme
nti
nthe
irr
espe
cti
vej
uri
sdi
cti
ons
;

"(
f)Toadv
iset
heappr
opr
iat
eaut
hor
iti
esonal
lque
sti
onsr
elat
ingt
ocoope
rat
ive
s;

"(g)Torai
sefundsthroughmember
shipf
ees
,duesandcont
ribut
ions
,donat
ions
,and
subsi
die
sfrom l
ocalandfore
igns
ourc
eswhethe
rpriv
ateorgover
nme nt
;and

"(
h)Todoandpe
rfor
ms uc
hothe
rnon-
bus
ine
ssac
tiv
iti
esasmaybene
ces
sar
yto
at
tai
nthef
ore
goi
ngobje
cti
ves
.

"Cooper
ati
veunionsmayas
sistt
henat
ionalandlocalgov
ernme
ntsi
nthel
att
er’
s
devel
opmentac
tivi
ti
esi
ntheirre
spe
cti
vejuri
sdi
ctions.
"

SEC.3. 
Arti
cl
es26,27,28,29,30,31and32ofChapt
erI
IIonMe
mbe
rshi
poft
hes
ameCodear
e
herebyrenumberedandame ndedtoread,asf
oll
ows
:

CHAPTERII
I
MEMBERSHI
P

"ART.26.Ki
  ndsofMembershi
p.–Acoope
rat
ivemayhav
etwo(
2)ki
ndsofme
mbe
rs,t
owi
t:
(1)r
egularme mbersand(
2)assoc
iat
emembers.

"Aregularme mberisonewhohasc ompliedwithalltheme mbe r s

hiprequir
e mentsand
enti
tle
dt oallther
ightsandpr i
vil
egesofme mbers
hip.Anas sociateme mberisonewhohas
norightt ovot
enorbev oteduponands hallbeent
itledonlytos uchr i
ghtsandpr i
vil
egesas
thebylawsmaypr ovide:
 Pr
ovided,Thatanassoc
iat
ewhome etst heminimum r equir
eme nt
s
ofregularme mber
ship,conti
nuestopatronizet
hec ooperat
ivefort wo( 2)years
,ands i
gnif
ies
his
/heri nte
ntiont
or emainame mbershal
lbeconsideredare gularme mbe r
.

"Ac ooperat
iveor
gani
zedbymi norsshal
lbec onsi
dere
dalaborat
orycoope
rat
iveandmustbe
aff
ili
atedwitharegi
ste
redcooperati
ve.Alaborator
ycoope
rati
veshal
lbegover
nedbyspe
c i
al
guideli
nestobepromulgat
edbyt heAuthorit
y .

"ART.27.
 Gover
nmentOff
icer
sandEmpl oyees.–(1)Anyof
fi
cerore
mploye
eoft heAuthori
ty
shal
lbedisqual
if
iedt
obeelec
tedorappointedtoanyposi
ti
oninacoope
rat
ive
: Prov
ided,
Thatthedisqual
if
icat
iondoesnote
xte
ndt
oac
oope
rat
iveor
gani
zedbyt
heof
fi
cer
sor
employeesoftheAuthori
ty.

"(2)Allel
ecti
veoff
ici
alsoftheGovernme ntshallbeinel
igibletobecomeof f
ice
rsand
di
r e
ctorsofcoope
rati
ves:
 Pr
ovided,Thatthedisquali
fic
ationdoe snote x
tendtoapart
yli
st
re
pr es
entati
vebei
nganof fi
cerofac oope
r at
iveheors her epre
sents;and

"(3)Anygov er
nme ntemploy
eeoroffic
ialmay,i
nt hedischargeofisdut i
esasame mbe rin
thecooperati
ve,beall
owedbytheendofof fi
ceconcernedtous eoffi
cialti
mef orattendance
atthegeneralassembly
,boar
dandc ommi tt
eeme eti
ngsofc ooperat
ivesaswe llascooperati
ve
seminars
,conference
s,works
hops,t
e c
hnicalmeeti
ngs,andt rai
ningcour s
eslocall
yorabr oad:
Provi
ded,Thattheope r
ati
onsoft
heof fi
ceconce
rne darenotadv ers
elyaffect
ed.

"ART.28.  Applicati
on.–Anappl i
cantf orme mbe r
ships hallbede e
me dame mbe rafter
approv alofhi sme mbe rshipbyt heboar dofdi rectorsands hallexercisetherightsofme mbe r
afte
rhav i
ngmades uchpay me ntstot hec ooperativeinr espectt ome mbe rshiporac quir
e d
inte
re stinthec oope r
at i
veasmaybepr es
c r
ibedi ntheby laws .Inc aseme mbe rshipisrefused
orde niedbyt heboar dofdi r
e ct
ors,anappe almaybemadet ot hege ne r
alassembl yandt he
lat
ter’sde ci
si
ons hal
lbef inal.Forthispur pose,thege ne r
alas sembl ymayoptt oc reat
ean
appealandgr ievancec ommi ttee,t
heme mbe rsofwhi chs hallse r
vef orape ri
odofone( 1)
yearands hallde c
ideappe alsonme mbe rshipappl ic
ationwi t
hi nthirty(30)day suponr ecei
pt
thereof.Ifthec ommi tteefailstode ci
dewi t
hint hepr escr
ibe dpe ri
od,t heappe alisdeeme d
approv edinf avoroft heappl ic
ant.

"ART.29.
 Li
abi
li
tyofMembers
.–Ame mbe
rs hal
lbeli
abl
eforthedebt
soft
hec
oope
rat
ivet
o
theext
entofhi
scontr
ibut
iont
othes
harecapit
aloft
hecooper
ativ
e.

"ART.30. TerminationofMember ship.–( 1)Ame mbe rofacooperat

ivemay ,f
oranyv al
id
reas
on,wi thdrawhi sme mbershipfrom t hec ooperati
vebygivi
ngas i
xty(60)daynoticeto
theboardofdi rectors
.Subjec
ttot heby lawsoft hec ooperat
ive
,thewithdrawingme mber
shal
lbee ntit
ledtoar efundofhi ssharec apitalcontri
buti
onandallotherintere
stsi
nt he
cooperat
ive:Pr
  ovided,Thatsuchf unds hallnotbemadei fuponsuchpayme ntthevalueof
theasset
soft hecoope rat
ivewoul dbel essthant heaggregateamountofitsdebtsand
li
abil
it
iese xc
lusi
veofhi ssharecapitalcontribution.

"(2)Thedeat horinsanit
yofame mbe rinaprimarycooper
ative,andtheinsol
vencyor
diss
oluti
onofame mbe rinas e
condaryort
e r
tiaryc
ooperat
ivemaybec ons
ideredvali
d
groundsforterminationofme mbershi
p:Provi
ded,Thatincaseofdeathorinsanit
yofan
agrari
anreform benefic
iary
-me mberofacoope r
ati
ve,t
hene xt-
of-ki
nmayas sumet hedut
ies
andr es
ponsibil
it
iesoftheorigi
nalme mber

"(
3)Member
shi
pinthec
ooper
ati
vemaybet er
minate
dbyav ot
eofthemaj
ori
tyofal
lthe
membe
rsoft
heboar
dofdir
ect
orsforanyoft
hefol
lowingc
auses:

"(a)Whe namembe rhasnotpat

roni
zedanyofthes
ervi
cesoft
hecooper
ati
vef
oran
unreasonabl
epe
riodofti
measmaybepr evi
ousl
ydeter
minedbytheboar
dof
di
r e
ctors;

"(
b)Whe
name
mbe
rhasc
ont
inuous
lyf
ail
edt
ocompl
ywi
thhi
sobl
igat
ions
;

"(c)Whename mbe
rhasac
tedi
nvi
olat
ionoft
heby
lawsandt
her
ule
soft
he
cooper
ati
ve;and
 "(d)Foranyactoromi
ssi
oni
njur
iousorpr
ejudi
ci
alt
othei
nte
res
tort
hewe
lfar
eof
thecooperat
ive
.

"Ame mberwhos eme mbershipt heboar dofdirectorsmaywi sht ot e

rminat eshallbe
inf
or me dofs uchint endedac t
ioni nwr iti
ngands hallbegi venanoppor t
unityt obehe ar
d
beforet hesaidboar dmake sit
sde ci
sion.Thede ci
sionoft heboar ds hallbeinwr it
ingand
shallbec ommuni catedinpe rsonorbyr egist
eredmai ltos aidme mbe rands hallbe
appe alabl
ewi thint hirt
y(30)day sfr
om r ecei
ptther e
oft ot hege ne ralassembl ywhos e
decisionshallbef inal.Thegene ralassembl ymayc reat eanappe alandgr ievanc ecommi t
tee
whos eme mbe rsshallserveforape ri
odofone( 1)y earands halldec i
deappe al
son
me mbe r
shiptermi nation.Thec ommi tt
eeisgiventhir ty(30)day sf rom receiptthereofto
decideont heappe al.Fail
uretode ci
dewi thinthepr escribe dperiod,theappe alisdeemed
approv edinfav oroft heme mbe r.Pendingade cis
ionbyt hege ne ralassembl y,the
me mbe r
shipremai nsi nforce.

"ART.31.Ref
  undofInter es
ts.–Allsumscomputedinacc
ordancewiththebyl
awstobedue
from acooperat
ivetoaf orme rmembe rs
hallbepaidt
ohime i
therbythecooper
ati
veorby
theapprovedtransf
ere
e ,asthec as
emaybe ,inacc
ordanc
ewiththisCode.
"

SEC.4.
 Art
icl
es33,34,35,36,37,38,39,40,42,42,43,44,45,46,47,48,49,50and51ofChapt
erI
V
onAdmi ni
str
ati
onoft hesameCodear ehe r
ebyrenumbe redandame ndedtor e
ad,asf
oll
ows:

CHAPTERIV
ADMINI
STRATION

"ART.32.Compos
  iti
onoftheGener
alAss
embly
.–Thege ne
ralass
emblys
hallbecompos
edof
suchme mber
swhoar ee
ntit
ledt
ovoteunde
rthear
tic
lesofcooper
ati
onandbylawsoft
he
cooper
ativ
e.

"ART.32.Power
  softheGener
alAss
embly
.–Thegeneralass
embl ys
hal
lbecompos
edofs
uch
me mberswhoaree
ntit
ledtovot
eunde
rthear
tic
lesofcooperat
ionandbyl
awsoft
he
cooper
ativ
e.

"ART.33.Power
  softheGeneralAs
sembl
y.–Thege neralass
embl yshal
lbethehighe
stpol
icy
-
makingbodyoft hec
oope r
ati
veandshal
lex
e rc
isesuchpowe rsasarest
atedint
hisCode,i
n
thearti
cl
esofcooper
ationandinthebyl
awsoft hecooperat
ive.Thegener
alass
emblyshal
l
havethefoll
owingexcl
usiv
epowe r
swhichcannotbede l
egate:

"(
1)Tode
ter
mineandappr
oveame
ndme
ntst
othear
tic
lesofc
oope
rat
ionand
by
laws
;

"(2)Toe l
ectorappointtheme mbe r
soft heboardofdi
rect
or s
,andtoremovethe
m
forcause
.Howe v
er,i
nt hecaseoftheelectr
iccooper
ati
vesregi
ste
redundert
hisCode
,
elec
tionoftheme mbe r
soft heboardshallbehe l
dinacc
ordancewithi
tsbyl
awsor
elec
tionguidel
ineofsuchelectr
iccooperati
ve;and

"(
3)Toappr
ovede
vel
opme
ntalpl
ansoft
hec
oope
rat
ive
.

"Subje
cttos
uchotherprovi
si
onsofthisCodeandonlyforpurposesofpromptandinte
lli
gent
deci
si
on-maki
ng,thegener
alass
emblymaybeat hree
-fourt
hs(3/4)voteofalli
tsmembers
withvoti
ngri
ght
s,pres
entandconst
ituti
ngaquor um,dele
gatesomeofi tspowerst
oa
s
mall
erbodyoft
hec
oope
rat
ive
.The
sepowe
rss
hal
lbee
nume
rat
edunde
rtheby
lawsoft
he
c
ooper
ati
ve.

"ART.34.
 Meet
ings.–(1)Ar egul
arme e
tingshallbeheldannuall
ybyt hege neralas
semblyon
adatefi
xedinthebylaws,orifnots
of i
xed,onanydat edwithinni
ne t
y( 90)day saf
terthe
cl
oseofeachfi
scalyear
:Pr
  ovi
ded,Thatnoti
ceofr egul
arme eti
ngsshallbese ntinwrit
ing,by
post
ingorpubli
cati
on,orthroughotherelec
tronicmeanstoallme mbe rsofr e
cord.

"(2)Whe nevernecessary,as peci

alme et
ingofthege neralas se
mbl ymaybec al
ledatany
ti
mebyamaj orit
yv oteoft heboardofdi rect
orsoraspr ovidedf orinthebylaws:Pr
  ovided,
Thatanotic
einwr it
ingshal lbesentone( 1)weekpr i
ort otheme eti
ngtoallme mbe rswho
areent
itl
edtov ote.Howe v
e r,aspeci
alme eti
ngshallbec al
ledbyt heboar
dofdi rectorsaft
er
compli
ancewi thther equirednoticewithinfrom atleas
tt e
n  percentum (10%)oft hetotal
me mber
swhor ee nti
tledtov otetotransactspe
cifi
cbusines scoveredbythec al
l.

"Ift
heboardfail
stoc allaregularoras pe
cialme e
tingwithinthegiv
e nperiod,theAuthori
ty,
uponpet
iti
onoft en percentum  (
10%)ofal ltheme mbersofthecoope r
ativ
ewhoar e
enti
tl
edtovote,andf orgoodc auseshown,s hal
lis
sueanor dertothepe t
iti
one r
sdire
cting
themtocal
lame et
ingoft hege neralas
sembl ybygivi
ngpropernoticeasrequiredinthis
Codeori
nt heby l
aws ;

"(3)Int
hecaseofanewlyapprovedcoope
rati
ve,aspec
ialgener
alas
sembl
yshal
lbec
all
ed,as
faraspr
act
icabl
e,wi
thi
nninety(90)daysfr
om suchapproval
;

"(4)TheAut
hori
tymaycal
laspec
ialmeet
ingoft
hecoope
rat
ivefort
hepur
poseofr
eport
ing
tothememberst
heres
ultofanyexami
nati
onorothe
rinv
est
igat
ionoft
hecoope
rat
iveaf
fai
rs;
and

"(
5)Not
iceofanyme
eti
ngmaybewai
ved,e
xpr
ess
lyori
mpl
iedl
y,byanyme
mbe
r.

"ART.35.
 Quorum.–Aquor um shallconsi
stofatl
easttwenty
-fi
vepercentum (25%)ofall
themembe r
sentit
ledtovot
e.Inthec aseofcooper
ati
vebanks,thequorum shallbeas
prov
idedinArti
cl
e99oft hi
sCode .I
nt hecaseofel
ect
riccooper
ati
vesregi
steredunderthi
s
Code,aquorum,unles
sotherwis
epr ovidedinthebyl
aws,shal
lconsi
stoffi
ve percent
um (5%)
ofal
ltheme mbersent
itl
edtovote .

"ART.36.
 Voti
ngSystem.–Eac
hme mbe rofapri
mar ycooperat
iveshal
lhaveonl
yone( 1)
vot
e.Inthecaseofme mber
sofsec
ondar yort
ert
iar
yc ooper
ativ
e s
,theyshal
lhaveone(1)
basi
cvoteandasmanyi nc
enti
vevotesasprov
ide
dfori nthebylawsbutnotexce
e dfi
ve(5)
vot
es.Thevotescas
tbythedel
egate
ss hal
lbedeemedasv ot
escastbytheme mbersther
eof.

"However
,thebylawsofacooper
ati
veotherthanaprimarymaypr
ovidef
orvoti
ngbyprox
y.
Voti
ngbyproxyme ansal
lowi
ngadelegateofacoope
rati
vetore
pre
sentorvot
einbehal
fof
anot
herdele
gateofthesamecooper
ative
.

"ART.37. Composit
ionandTer m oftheBoardofDirect
ors.–Unlessother
wi s
epr ovi
dedin
thebylaws,thedire
ctionandmanage me ntoftheaff
air
sofac ooperati
veshal
lbev est
edina
boardofdi r
ect
orswhi chshal
lbec omposedofnotlessthatfi
ve(5)normor ethanf i
ft
een(15)
me mbe r
se l
ect
edbyt hegeneralasse
mblyf orater
m oftwo( 2)yearsandshallholdoff
ice
unti
ltheirsucce
ssorsaredulyelec
tedanqual i
fi
ed,oruntildul
yremov edf
orc aused.
"ART.38.
 Power
softheBoar
dofDirector
s.–Theboardofdi
rec
tor
sshallbere
sponsi
blef
or
thest
rate
gicpl
anni
ng,di
rect
ion-
set
tingandpoli
cy-
for
mulati
onact
ivi
ti
esofthecooper
ati
ves
.

"ART.39.
 Dir
ectors
.–(1)Anyme mberofacooper
ativewhounde rtheby l
awsofthe
cooper
ati
ve,hastheri
ghttovot
eandwhopos ses
sesallt
hequalif
icati
onsandnoneofthe
dis
quali
fi
cati
onsprovi
dedinthelawsorbyl
awsshallbeeli
gibl
eforelect
ionasdir
ect
or.

"(2)Thec ooperati
v emay ,byresoluti
onofitsboardofdi r
ector
s,admitasdi rect
ors,or
commi tteeme mbe roneappoi ntedbyanyf i
nancinginsti
tuti
onf r
om whi chthec ooperat
ive
receiv
edf i
nancialassis
tancesolel
yt oprov
idetechnicalknowledgenotav ai
lablewi thi
nits
me mbe rs
hip.Suchdi rect
ororc ommi tt
eeme mbe rnotbeame mbe rofthec ooperativ
eand
shallhavenopowe rs,ri
ghts,norresponsi
bil
iti
esexcepttoprovidedtechnicalassi
stanceas
requiredbythec oope r
ative.

"(3)Themember
softheboar
dofdi
rec
tor
sshallnotholdanyothe
rpos
iti
ondi
rec
tlyi
nvol
ved
inthedayt
odayope
rati
onandmanagementofthecooperat
ive
.

"(4)Anypers
onengagedi
nabusine
sssi
milart
othatoft
hecooper
ati
veorwhoinanyway
hasaconfl
ic
tofi
nteres
twithi
t,i
sdis
qual
if
iedfr
om el
ect
ionasadi
rect
orofs
aidcoope
rat
ive
.

"ART.40.
 Meet
ingoft
heBoardandQuorum Requi
rement.–(1)I
nt hec
aseofpri
mar
y
cooper
ati
ves
,regul
armee
tingsoft
heboardofdir
ector
sshal
lbeheldatl
eastonc
eamont
h.

"(2)Spec
ialmeeti
ngsoftheboardofdirec
tor
smaybehe ldatanytimeupont hecal
lofthe
chai
rpers
onoramaj ori
tyoftheme mbersoftheboard:Pr
  ov
ided,Thatwrit
tennotic
esofthe
me et
ingspec
ify
ingtheagendaofthespeci
alme et
ingshal
lbegiventoallmembe r
softhe
boardatleas
tone(1)we e
kbe f
orethesai
dme e
ting.

"(3)Amajor
ityofthemembe
rsoft
heBoar
ds hal
lcons
tit
uteaquor
um ort
hec
onduc
tof
busi
nes
s,unl
essthebyl
awspr
ovedothe
rwi
se.

"(
4)Di
rec
tor
scannotat
tendorv
otebypr
oxyatboar
dme
eti
ngs
.

"ART.41. Vacanc yintheBoar dofDirect

ors.–Anyv ac
ancyintheboardofdi r
ectors,ot
her
thanbye xpirationofte r
m,maybef i
lle
dbyt hevoteofatleas
tamaj ori
tyofther emaini
ng
direc
tors
,ifst i
llconsti
tutingaquorum;ot herwi
se,t
hev ac
ancymustbef il
ledbyt hegeneral
assemblyinar e gularorspeci
almee t
ingcalle
dforthepurpose.Adir
e c
torsoe l
ectedtofil
la
vacancyshallser v
eonl ytheunexpi
redt er
m ofhispredece
ssorinof
fi
c e.

"ART.42. Of
  fi
cersoftheCooper ative.–Theboar dofdi rectorss hallelectfrom among
thems el
v e
sthec hairpersonandv ice-chairperson,ande l
e ctorappoi ntot herof fi
c er
soft he
coope r
ativefrom out si
deoftheboar di naccordanc ewi tht heirby l
aws .Al loffic
e rsshal
ls e
rve
duringgoodbe haviorands hallnotber emov e
de xceptforc aus eafterduehe aring.Lossof
confidenceshallnotbeav ali
dgr oundf orremov alunl essev i
de ncedbyac tsoromi s
sion
causinglossofc onfidenceinthehone styandi ntegrityofs uchof f
icer.Not wo( 2)ormor e
personswi threlati
ons hi
psupt ot hethi rdci
vilde greeofc ons angui nityoraf fini
t ynorshall
anype rsone ngagedi nabus i
ne s
ss i
mi lartothatoft hec oope r ativ
enorwhoi nanyot her
manne rhasi nterestsinconfl
ictwi t
ht hec oope r
at i
ves hallserv easanappoi ntiveoffice
r.

"ART.43.
 Commit
teesofCooper
ati
ves
.–(1)Thebyl
awsmaycre
ateanexec
uti
vecommit
tee
tobeappoint
edbytheboardofdir
ect
orswi
thsuchpowe
rsandduti
esasmaybedel
egat
edto
i
tint
heby
lawsorbyamaj
ori
tyv
oteofal
ltheme
mbe
rsoft
heboar
dofdi
rec
tor
s.

"(2)Theby lawss hallprovidefort hec reat

ionofanaudi t
,e l
ecti
on,me diati
onand
concil
iat
ion,ethics,ands uchot herc ommi tte
esasmaybene c e
ssaryfort heconductofthe
aff
airsofthec oope r
ative.Theme mbe r
sofbot htheauditande lect
ionc ommi tt
eeshallbe
elec
tedbyt hege neralas s
embl yandt her e
stshallbeappointedbyt heboar d.Theaudit
commi tt
ees hallbedi r
ec t
lyaccount ableandr esponsi
bletothege neralas s
embly.I
ts hal
lhav
e
thepowe randdut ytoc ontinuouslymoni t
ortheade quacyande ff
ec t
ivenessofthe
cooperati
ve’smanage me ntcontrols yst
em andaudi ttheperformanc eoft hecooperati
veand
it
svariousre s
pons i
bili
tyc enter
s .

"Unlessother
wi s
eprovi
dedinthebyl
aws,theboar
d,i
nc aseofav acancyi
nthecommi t
tee
s,
mayc allanel
ecti
ontofil
lthevac
ancyorappoi
ntapersontofil
lthes amesubj
ecttot
he
prov
isionthatthepe
r s
one l
ect
edorappoint
edshal
lse
rv eonl
yfort heunexpi
redport
ionof
theterm.

"ART.44.Func
  t
ions
,Responsibi
li
tiesandTrai
ningRequirementsofDir
ect
ors,Off
icersand
Commi t
teeMember s
.–t hefuncti
onsandr es
ponsibi
li
tie
sofdirect
ors
,off
icer
sandc ommitte
e
me mbers
,aswe l
lasthei
rtraini
ngr equi
rements,s
hallbeinacc
ordancewiththerulesand
regul
ati
onsiss
uedbyt heAuthori
ty.

"ART.45. Li
  abi
li
tyofDirector
s,Offi
cersandCommi tteeMember s.–Dir
ectors,off
icersand
commi tt
e eme mbe r
s,whoar ewill
full
yandknowi nglyvotefororass
enttopat ent
lyunl awful
actsorwhoar eguil
tyofgrossnegli
genceorbadf ai
thindirecti
ngtheaff
airsofthe
cooperativeoracquireanypersonalorpecuni
aryinteres
tinc onf
li
ctwit
ht hei
rdut yassuc h
dir
e c
tors,offi
cersorcommi tt
eeme mbe r
sshallbeli
ablejointl
yandsever
allyforalldamage s
orprofit
sr esul
ti
ngt here
from tothecooperat
ive,membe rs,andothe
rpersons.

"Whe nadirec
tor,of
fic
erorc ommi t
teeme mbe rattemptstoacquireoracqui
res,i
nviol
ati
on
ofhisduty
,anyinter
estorequityadverset
ot hec ooperat
ivei
nr e
s pectt
oanymat t
erwhich
hasbeenreposedinhiminc onfi
dence,heshall,asatrusteef
orthec ooper
ati
ve,beli
abl
efor
damagesandshallbeaccountablef
ordoublet hepr of
itswhic
hot herwisewouldhaveac
crued
tothecooper
ati
v e
.

"ART.46. Compens
  ati
on.–( 1)I ntheabs enceofanypr ov i
s i
onsint hebylawsf i
xingthei
r
compe nsati
on,thedi r
e ctor sshallnotr ecei
veanycompe ns ati
one xceptforreasonabl
e per
 
diems :Pr
  ov i
ded howev er,Thatt hedi r
ectorsandoffi
c e
rss hallnotbee ntitl
edt oanyper
 
diem  whe n,inthepr e
c edingc alendaryear,thecoope r
ativer eportedane tlossorhada
dividendr atelessthant heof fic i
alinfl
ati
onr atef
ort hes amey e
ar .Anycompe nsati
onot her
than perdi ems  
maybegr antedt odi rec
torsbyamaj orityv oteoft heme mbe rswithvoting
rightsatar egularors pec ialge neralasse
mbl yme et
ings pe ci
fic
allycall
edforthe
pur pose:
 Provided,Thatnoaddi ti
onalcompe nsat
ionot he rthan perdiems  
shallbepaid
dur i
ngt hef i
rstyearofe xis t
enc eofanyc oope r
ati
ve.

"(2)Thecompensati
onofof
fi
c e
rsofthecoope
rat
iveaswellastheme mber
softhe
commi t
teeaswel
lasthemembe rsofthecommit
teesc
reat
e dpursuantt
othisCodeori
ts
bylawsmaybefix
e dint
hebylaws.

"(
3)Unle
ssal
readyf
ixe
dint hebylaws,t
hec
ompe
nsat
ionofal
lot
here
mpl
oye
eshal
lbe
det
ermi
nedbytheboardofdire
ctors.

"ART.47.
 Deal
ingsofDi
rec
tor
s,Of
fi
cer
s,orCommi
tteeMember
s.–Ac
ont
rac
tent
ere
dint
o
bythec
ooperat
ivewithone(1)ormoreofi
tsdir
ectors
,off
icer
s,andcommitt
eeme mbersi
s
voi
dabl
e,att
heoptionofthecoope
rat
ive
,unle
ssallthefol
lowingcondi
ti
onsarepr
esent
.

"(
1)Thatt
hepres
enc
eofsuchdir
ect
orintheboardmeeti
ngwhe
rei
ncont
rac
twasappr
ove
d
wasnotne
ces
sar
ytocons
tit
uteaquorum f
orsuchmee
ting;

"(
2)Thatt
hev
oteofs
uchdi
rec
torwasnotne
ces
sar
yfort
heappr
ovaloft
hec
ont
rac
t;

"(
3)Thatt
hec
ont
rac
tisf
airandr
eas
onabl
eunde
rthec
irc
ums
tanc
es;and

"(4)Thatinthecas
eofanoff
ice
rorcommitt
eeme mbe
r ,t
hecontr
actwit
htheoff
ice
ror
commi t
teeme mberhasbe
enprevi
ousl
yaut
hori
zedbythegener
alasse
mblyorbytheboar
d
ofdir
ectors
.

"Whe reanyofthef i
rsttwoconditi
onss etforthinthepre c
e dingparagr
aphisabsent,inthe
caseofacontrac
twi thadirect
or,suchc ontractmayber ati
fiedbyat hree-
fourt
hs( 3/4)vote
ofallt
heme mberswithvoti
ngr i
ghts,presentandc onst
itutingaquor um i
name eti
ngc al
led
forthepurpose:
 Prov
ided,Thatful
ldisclosureoftheadve rs
ei nter
estofthedir
ectorsinvolv
ed
ismadeats uchme et
ing,andthatthec ontractisf
airandr easonableunderthecirc
ums tances
.

"ART.48. Di
  s
loyal
tyofaDi rect
or.–Adi r
e ctorwho,byv irtueofhi soff
ice,ac
quire
sfor
hims el
fanoppor t
unitywhichs houldbe l
ongt othecoope r
at iveshal
lbeliabl
efordamages
andmus tacc
ountf ordoublethepr of
itsthatot herwis
ewoul dhaveaccr
ue dtothe
coope r
ativ
ebyr ef
undingthes ame ,unles
shi sacthasbeenr ati
fi
edbyat hree-
fourt
hs(3/4)
voteofalltheme mbe rswit
hv otingright
s ,pr es
entandc ons ti
tuti
ngaquor um.Thisprov
isi
on
shallbeappli
cable,notwit
hstandingthef actt hatthedir
e c
t orus edhi
sownf undsinthe
venture.

"ART.49.I
 l
legalUseofConfi
dentialInformat
ion.–( 1)Adirec
tororoffi
cer
,oranas s
ociat
eof
adirect
ororof f
icer
,who,forhisbe nefi
toradvantageorthatofanassoci
ate,makesuseof
confi
denti
alinformati
onthat,i
fge nerall
yknown,mi ghtreas
onablybeexpectedtoadvers
ely
aff
ecttheope r
ati
onandv i
abili
tyoft hecooper
ativ
e ,shal
lbeheld:

"(a)Li
abl
etocompensatethecooperati
vef
orthedi
rec
tlos
sess
uff
ere
dbyt
he
coope
rati
veasare
sultoftheil
legaluseofi
nfor
mati
on;and

"(
b)Acc
ountabl
etot
hecooperat
iveforanydir
ectbenef
itoradvantagere
cei
vedor
ye
ttobere
ceive
dbyhim orhi
sassoc
iate,asar
esultoft
hetrans
ac t
ion.

"(2)Thecooperat
ives
hal
ltaket
hene
ces
sar
yst
epst
oenf
orc
ethel
iabi
li
ti
esde
scr
ibe
din
subsec
tion(a)

"ART.50.Remov
  al.–Allcompl aintsfortheremov alofanyelec
tedoff
icershal lbefi
ledwith
theboardofdirectors
.Suc hof f
icershallbegiv
e ntheopportuni
tytobehe ard.Maj ori
tyofthe
boardofdire
ctorsmaypl ac etheof f
icerconcernedunderpreventi
vesuspensionpe ndingthe
res
oluti
onoft heinvesti
gation.Uponf i
ndingofapr imafaci
ee v
idenc
eofgui lt,theboardshall
pres
entitsre
comme ndationf orremov altothegene r
alass
embl y.

"Ane l
ect
iveoffic
ermayber e
mov edbythr
eefour
ths(3/4)vot
esofther
egularme mbers
pres
entandc onsti
tut
ingaquorum,inaregul
arorspe
c i
alge
neralass
emblyme e
tingcal
led
fort
hepur pose.Theoff
ice
rconce
rnedshal
lbegiv
enanoppor t
unityt
obeheardats ai
d
 as
sembl
y.

SEC.5.
 Art
icl
es52,53,54,55,56,57,58,59,60,61,62and63ofChapte
rVonRes
pons
ibi
li
ties
,Right
s
andPri
v i
lege
sofCoope r
ati
vesofthesameCodear eher
ebyre
numbe r
edandame
ndedtoread,as
fol
lows:

CHAPTERV
RESPONSI
BIL
ITI
ES,RI
GHTSANDPRIVIL
EGESOFCOOPERATI
VE

"ART.51.Addr
  es
s.–Everycooper
ati
veshal
lhaveanof
fi
ci
alpos
taladdresstowhi
chal
l
noti
cesandcommunicationsshal
lbese
nt.Suc
haddres
sandever
yc hangether
eofs
hal
lbe
regi
ste
redwiththeAuthorit
y.

"ART.52.Bookst
  obeKeptOpen.–(1)Eve
rycooperat
iveshal
lhav
ethefoll
owingdocume
nts
readyandacces
sibl
etoi t
smember
sandrepres
entati
vesoftheAut
hori
tyforins
pect
ion
duringre
asonableoff
icehour
sati
tsof
fi
ci
aladdress
:

"(
a)Ac
opyoft
hisCodeandal
lot
herl
awspe
rtai
ningt
ocoope
rat
ive
s;

"(
b)Ac
opyoft
her
egul
ati
onsoft
heAut
hor
ity
;

"(
c)Ac
opyoft
hear
tic
lesofc
oope
rat
ionandby
lawsoft
hec
oope
rat
ive
;

"(
d)Ar
egi
ste
rofme
mbe
rs;

"(
e)Thebooksoft
hemi nut
esoft
heme
eti
ngsoft
hege
ner
alas
sembl
y,boar
dof
di
rec
tor
sandcommi t
tee
;

"(
f)Shar
ebooks
,whe
reappl
ic
abl
e;

"(
g)F
inanc
ials
tat
eme
nt;and

"(
h)Suc
hot
herdoc
ume
ntsasmaybepr
esc
ribe
dbyl
awsort
heby
laws
.

"(
2)Theaccount
antort hebookkee
pe rofthec
ooperati
veshal
lberes
ponsi
bleforthe
maint
enanceoft
hec ooperat
ivei
naccordancewit
hge ner
all
yacce
ptedacc
ountingpract
ice
s.
Heshal
lals
oberesponsibl
efortheproducti
onofthesameatthetimeofauditori
nspecti
on.

"Theauditcommittees
hallberesponsi
blef
ort hecont
inuousandperi
odicr
evi
ewofthe
booksandrecor
dsofaccounttoe nsur
ethattheseareinaccor
dancewit
hgener
all
yacce
pted
acc
ountingprac
tic
es.Heshallal
sober es
ponsiblef
ortheproduct
ionofthes
ameatthetime
ofaudi
torinspect
ion.

"(3)Eac hcooperati
ves hallmaintainrec or
dsofac count
ssuchthatt
het rueandcorr
ect
conditi
onandt her esultsoftheope rati
onoft hec ooper
ati
vemaybeas cert
ainedthe
refrom at
anyt i
me .Thefinanci
als tate
me nt
s ,auditedaccordingtogener
all
yacceptedaudit
ing
standards,pri
ncipl
esandpr act
ice
s ,shallbepublishedannual
lyandshallbekeptposte
di na
conspicuousplaceint hepr i
nci
palof fi
ceoft hecooperat
ive
.

"(
4)Subje
cttot
hepert
inentpr
ovi
si
onsoftheNat
ionalI
nternalRe
venueCodeandotherl
aws
,
acoope
rati
vemaydi
sposebywayofbur
ningorot
he rmethodofcomplet
edest
ruct
ionany
document,recordorbookpe rtai
ningtoitsfi
nanc ialandnonf i
nanc i
alope rati
onswhichar
e
alr
eadymor ethanfive(5)yearsoldexceptthoser elatingtotransactionswhi charethe
subje
ctofcivi
l,cr
iminalandadmi nis
trati
vepr oceedings .Aninventoryoft heaudited
documents,recor
dsandbookst obedisposedofs hallbedr awnupandc e
rt i
fi
edtobythe
boardsecr
etaryandthec hair
manoft heaudi tcommi t
teeandpr esent e
dt otheboardof
dir
ector
swhi chmayt hereuponapprovet hedispos i
tionofs ai
dr ecords.

"ART.53. Repor
  t
s.–( 1)Ev e
r ycoope rati
ves halldrawupr egularreportsofi tsprogram of
acti
vit
ies,includingt hoseinpur suanceoft he i
rs oci
o-ci
vicunde rtaki
ngs ,showi ngtheir
progressandac hieveme ntsatt hee ndofe ve ryfisc
alyear.Ther eportsshallbemade
access
ibletoi tsme mbe rs,andc opiesthereofs hallbefurnishedt oalli
tsme mbe rsorrecord.
Theserepor tsshallbef i
ledwi t
ht heAut horitywi thinonehundr edtwe nty( 120)day sfr
om
theendoft hec alendary ear.Thef orm andc ontentsofther eportsshallbeaspr esc
ribedby
therulesoft heAut hori
ty.Failuret ofil
ether equiredreportsshallsubjecttheac countable
offi
cer/stof i
ne sandpe nalt
iesasmaybepr escribedbyt heAut horit
y,ands hal lbeaground
forthere v
oc ationofaut hor i
tyoft hec ooper ativ
et ooperateass uch.Thef iscalyearofevery
cooperativ
es hal lbethec alendary eare xc
eptasmaybeot herwi s
epr ovi
de di ntheby l
aws .

"(2)Ifac ooperat
ivefai
lstomake ,publ
ishandf i
lethereportsrequiredherein,orfailsto
incl
udet herei
nanymat t
e rr
equir
e dbytheCode ,t
heAut hori
tys hall
,withi
nf if
teen( 15)days
from thee xpi
rati
onofthepr es
cri
be dperi
od,sends uc
hc ooperativeawr i
tte
nnot ice,stati
ng
itsnon-complianceandt hecomme nsur
atefinesandpe nalt
iesthatwi l
lbeimpos edunt ilsuc
h
timethatt hecooperati
vehascompl i
edwi t
ht herequir
eme nts.

"ART.54.Regi
  sterofMembersasPrimaFaci
eEvi
dence.–Anyregi
ste
rorli
stofmember
s
shar
eskeptbyanyr egi
ste
redcoope
rati
veshal
lbepri
maf ac
iee
videnceoft
hefol
lowi
ng
part
icul
arsent
eredtherei
n:

"(
1)Thedateonwhi
cht
henameofanype
rsonwase
nte
redi
nsuc
hre
gis
terorl
is
tof
member;and

"(
2)Thedat
eonwhi
chanys
uchpe
rsonc
eas
edt
obeame
mbe
r.

"ART.55.Pr
  obati
veValueofCerti
fi
edCopi esofEntr
ies
.–(1)Acopyofanye nt
r yinanybook,
regi
sterorli
stre
gularl
ykeptinthecourseofbus i
nessi
ntheposses
sionofacooperati
veshal
l,
ifdulycer
tif
iedi
nac c
ordancewiththerulesofevide
nce,beadmiss
ibleasev
idenceofthe
exis
tenceofentr
yandpr i
maf ac
ieevide
nc eofthemat t
ersandtr
ansacti
onsthe
r ei
nrecor
ded.

"(2)Nope r
sonorac ooperati
veisposse
ssionofthebooksofsuchc
ooperat
iveshal
l,i
nany
le
galproceedi
ngstowhic hthecooperat
iveisnotaparty
,becompelle
dtoproduceanyoft he
booksofthecooperat
ive,theconte
ntsofwhi chcanbeprovedandthematter
s,tr
ansact
ions
andaccountsthe
reinrecorded,unl
essbyor de
rofac ompet
entcourt
.

"ART.56. BondingofAc countableOffic
ers.–Ever
ydire
ctor,off
ice
r ,ande mployeehandling
funds,sec
ur i
ti
esorpr opertyonbe halfofanycooper
ati
veshallbec overe
dbyas uret
ybondt o
beiss
ue dforadul yregis
teredinsuranceorbondingcompanyf orthef ai
thfulperf
ormanc eof
thei
rr e
spe c
tiv
edut i
esandobl igati
ons.Theboardofdirec
torsshalldeter
mi netheade quacyof
suchbonds .

"Upont
hef i
li
ngoftheappli
cati
onforregis
trat
ionofac oope
rat
ive,thebondsoft
he
acc
ount
ableoffi
cer
sshal
lberequir
edbyt heAuthori
ty.Suchbondsshallbere
newed
manual
lyandtheAuthor
ityshal
laccor
dinglybeinf
orme dofsuchrenewal.
"ART.57.Pr
  eferenceofClai
ms.–( 1)Notwithst
andingthepr ovi
sionsofexist
ingl aws,rule
s
andregulat
ionst othecontr
ary,butsubjec
ttothepr i
orclaim oftheAuthority,anyde btdue
tothecooperati
v efrom t
heme mbe rshal
lconst
ituteafir
stlienuponanyr awmat e
rials
,
producti
on,inputs,andproductsproduce
d;oranyl and,buil
ding,faci
li
ti
e s
,equi pment,goods
orservi
cesacquiredandhe l
d,bysuc hmembe rthroughthepr oce
e dsoftheloanorc r
edit
grante
dbyt hecoope rat
ivet
ohi mf orasl
ongast hesamei snotfullypai
d.

"(2)Nopropert
yorinte
restonpr opertywhichissubj
ectt
oalienunderparagr
aph( 1)shall
besoldnorconvey
edtothirdpartie
swi thoutthepri
orper
miss
ionofthecooperati
ve.Thelien
uponthepropert
yorinter
estshallconti
nuet oexi
tevenaf
tert
hesaleorconveyancethereof
unti
lsuchli
enhasbeendulyextinguished.

"(3)Notwi
ths
tandi
ngt
heprov
isi
onsofanylawtothecont
rar
y,anys
aleorc
onv
eyanc
emade
incont
rave
nti
onofpar
agr
aph(2)here
ofshallbev
oid.

"ART.58. I
nst
rumentf orSalar
yorWageDeduc ti
on.–( 1)Ame mberofac ooperat
ivemay,
notwit
hstandingtheprovis
ionsofexis
tinglawstothec ontrary,exec
ut eaninst
rume nti
n
fav
oroft hecooperat
iveauthoriz
inghisemployertode ductfrom his/hersal
aryorwages,
commut ati
onofl e
avec r
edit
sandanyot hermone tarybe nefi
tspayabletohim bythe
employerandr emits
uc hamountasmay bespec
ifi
e dins at
isf
actionofade btorother
demandduef rom theme mbe rtothecooperat
ive.

"(2)Upont heexecuti
onofs uchi nstrumentandasmayber e
quiredbythecoope rati
ve
containedinawr i
tte
nr equest,thee mployershal
lmakethede duc
tioni
nac cordancewi ththe
agreeme ntandde ductioninac c
or dancewiththeagree
me ntandremitfor
thwi ththeamount
sode ductedwi t
hinten( 10)daysaf tert
hee ndofthepayrol
lmontht ot
hec ooperative.The
empl oye
rs hallmaket hededuc t
ionf oraslongassuchdebtorotherdemandr emai nsunpaid
bythee mpl oyee.

"(3)Theter
m "employer"asusedinthisarti
cl
eshalli
ncludeallpri
vatefi
rmsandthe
nati
onalandloc
algovernmentsandgov er
nme nt-
ownedorc ontrol
ledcorpor
ati
onswhohave
underthei
remployerame mberofac ooperati
veandhaveagree dtocarr
youttheter
msof
theins
trumentmentionedinparagr
aphs( 1)and(2)ofthisar
ticl
e.

"(4)Thepr
ovisi
onsofthi
sart
icl
eshallappl
ytoallsi
mi l
aragree
mentsr
efe
rre
dtoi
n
paragr
aph(1)andwe r
eenfor
cedpriortotheapprovalofthi
sCode
.

"(5)Notwithstandingtheprovi
sionsofexi
sti
nglawstothec ontr
ary,ther
esponsi
bili
ti
e sof
thee mploy
erass tate
di npar
agraphs(1)and(2)ofthisart
icle
sshallbemandatory:Provide
d,
Thatinthec as
eofpr ivat
eemploy er
,theac
tualandreasonablecostdeduc
tingandremi tt
ing
may becoll
ected.

"ART.59.
 Pr
imaryLien.-Not
withs
tandi
ngtheprovisi
onofanyl awwiththec
ont
rar
y,a
cooper
ati
veshal
lhav epri
maryl
ienuponthecapit
al,depos
itsorint
ere
stofamemberf
orany
debtduetothecooperat
ivef
rom s
uchame mbe r
.

"ART.60.TaxTr
  eatmentofCooperat
ive.-Dulyregis
tere
dc oope r
ativ
esunde rt
hisCodewhi ch
donottransac
tanybus i
nesswit
hnon- me mbersorthege neralpubli
cshallnotbes ubj
ectto
anytaxesandfeesimposedundertheinter
nalrevenuelawsandot hertaxlaws.Cooperat
ives
notfal
li
ngunde rthi
sarti
cles
hallbegovernedbyt hesucceedingsect
ion.

"ART.
61.
 TaxandOt
herEx
empt
ions
.Coope
rat
ive
str
ans
act
ingbus
ine
sswi
thbot
hme
mbe
rs
andnon-me mbe rsshallnotbes ubject
edtot axont heirt
ransactionswithme mbers
.In
rel
ati
ontot hi
s,thet r
ansactionsofme mbe rswiththec ooperati
ves hal
lnotbesubjectt
oany
taxe
sandf ees
,includingnotl i
mi t
edt ofi
naltaxesonme mber s
’de posi
tsanddocume nt
aryt
ax.
Notwiths
tandingt heprovis
ionsofanyl aworr egulationtothec ontrar
y,suchcooper
ativ
es
deali
ngwithnonme mbe rsshallenjoythefoll
owingt axexempt i
ons :

"(1)Cooperati
veswithac cumul atedreser
vesandundi videdne tsav i
ngsofnotmor ethanTe n
mill
ionpesos(P10,000,000.00)s hal
lbee xemptf rom allnat i
onal,city,provinci
al,munic i
pal
orbarangaytaxesofwhat evernameandnat ure.Suc hcoope rati
vess hallbee x
e mptfrom
cust
omsdut ies
,advanc esalesorc ompensatingtax esont heirimpor tationofmac hineri
e s
,
equipmentands parepartsus edbyt hem andwhi charenotav ai
lablel ocal
lyac ert
if
iedbyt he
depart
me ntoftradeandi ndus t
ry( DTI
).Alltaxf r
eei mpor tati
onss hallnotbes oldnort he
benefi
ci
alowne rshi
pt hereofbet ransf
erredt oanype rs
onunt ilaft
e rfive(5)years,otherwise
,
thecooperati
veandt hetrans f
ereeoras s
ignees hallbesol i
daril
yliablet opayt wicethe
amountoft heimpos edtaxand/ordut i
es.

"(
2)Coope
rat
iveswit
hac cumulatedre
ser
vesanddi
vide
dne ts
avi
ngsofmoret
hanTe
n
mil
li
onpes
os(P10,
000,000.00)shal
lfe
ethefol
lowi
ngtaxe
sattheful
lrat
e:

"(a)I
ncomeTax-Ont heamountal locat
edforinter
estoncapital
s:Pr
ovide
d,Thatthe
sametaxisnotconsequentlyi
mpos edoninteres
tindiv
idual
lyrecei
vedbyme mbers
:
Provi
ded,fur
the
r ,Thatcooperat
ive
sr e
gardl
essofclass
ifi
cat
ion,areexemptinc
ome
taxfr
om thedat
eofr e
gist
rati
onwi t
ht heAuthori
ty;

"(b)Val ue -Adde dTax–Ont ransactionswi thnon- me mbe rs:

 Provided, howev er,That
coope rativ
e sdul yregi
ste re
dwi tht heAut hor it
y ;aree xe mptf rom t hepay mentof
value-adde dt ax ;subjecttoSe cti
on109,s ub- sectionsL ,M andNofRe publ i
cAc tNo.
9337,t heNat ionalI nternalRe venueCode ,asame nde d: Provided,Thatt heexempt
transactionunde rSe c
tion109( L)shallincludes alesmadebyc oope rativesduly
registe
r edwi tht heAut horityorganizedandope ratedbyi tsme mbe rtounde r
taket he
produc ti
onandpr ocessingofr awmat erialsorofgoodspr oduce dbyi tsme mbe rsinto
fi
ni s
he dorpr oc essproduc tsforsalebyt hec oope rativet oi t
sme mbe rsandnon-
me mbe r
s:Pr
  ov ided,f
 urther,Thatanypr oc essedpr oduc tori t
sde r
ivati
v earisi
ngf rom
ther awmat erialsproduc edbyi tsme mbe rs,soldi nt he nnameandf ort heaccountof
thec oope rati
v e: Provi
ded  ,
 fi
nall
y ,Thatatl eastt we nt y-fiv
e perc
  entum  (25%)oft he
ne ti
nc omeoft hec oope rati
vesisr et
urne dt ot heme mbe r
sint hef orm ofi nterest
and/ orpat ronager efunds ;

"(
c)Al
lot
hert
axe
sunl
essot
her
wis
epr
ovi
dedhe
rei
n;and

"(d)Donationst
ochar
itabl
e,re
sear
chande
ducati
onalins
tit
uti
onsandrei
nve
stme
nt
tosoci
oeconomicpr
oje
ctswithi
ntheare
aofoper
ationofthecoope
rat
ivemaybet
ax
deduct
ibl
e .

"(3)Al lcoope rati

ves,regardlessoftheamountofac cumul atedr e
servesandundi v
idedne t
savingsshal lbee xemptf rom pay me ntoflocaltaxesandt axesont ransact
ionswithbanksand
insurancec ompani es:Pr
  ov i
ded,Thatal lsalesors e
rvi
c esrenderedf ornon-me mbersshallbe
subjecttot heappl i
cablepe rcentaget axessale
smadebypr oduc ers
,mar ket
ingors er
vic
e
coope rat
ives :
 Provi
ded further,Thatnot hingint hi
sart i
cl
es hallprecl
udethee xaminati
onof
thebooksofac countsorot herac countingrecordsoft hecoope rati
vebydul yauthori
zed
int
e rnalreve nueoffice
rsf orinternalr e
v e
nuet axpurpos esonly,afterprevi
ousauthorizati
on
byt heAut hor it
y.
"(4)Inareaswhe rethe
rearenoav ai
lablenotar
iespubli
c,thejudge,ex
erci
si
nghi s
 ex
offi
cio 
capaci
tyasnot arypubl
ic,shallrenderserv
ice,f
reeofcharge,toanypersonorgroupof
personsrequiri
ngt headminis
trationofoat hortheacknowl e
dgme ntofart
icl
esof
coope r
ati
onandi nst
rumentsofloanf rom cooperat
ivesnotexceedi
ngF i
veHundredThousand
Pesos(P500,000.00).

"(5)Anyr e
gis
terofdee dsshallacc
eptforregis
trati
on,freeofcharge ,anyinst
rumentrelati
ve
toaloanmadeunde rthisCodewhi chdoesnote xceedTwoHundr edF if
tyThousandPesos
(P250,000.
00)orthede edsoft i
tl
eofanypr opertyacquire
dbyt hec ooperati
veoranypape r
ordocume ntdrawninc onne c
tionwithanyac t
ionbr oughtbythec oope r
ativ
eorwithany
courtjudgmentrenderedini t
sfavororanyinstrume ntrel
ati
vet oabondofanyac countabl
e
offi
cerofacooperati
vef orthefait
hfulper
formanc eofhisdutiesandobl igat
ions
.

"(6)Cooperativ
ess hallbeexemptf r
om thepay mentofallcourtandsher
iff
’sfe
espayabl
eto
thePhil
ippi
neGov ernme ntforandinconnectionwithallacti
onsbroughtunderthi
sCode,or
whe r
esuchac ti
onsi sbroughtbytheAut hor
itybeforet
hec ourt,toenf
orcethepaymentof
obli
gati
onsc ontrac
t edinfavorofthecooperati
ve.

"(7)Allcooperati
vesshallbee xe
mptf rom put
tingupabondf orbr i
nginganappe alagainst
thedecis
ionofani nferiorcourtorforseeki
ngt osetas
ideanythir
dpar tycl
aim:Pr
  ovided,
Thatac e
r t
if
icati
onoft heAut hori
tyshowingthatthenetasset
soft hecooperat
ivear ein
exces
soft heamountoft hebondr equire
dbyt hecourtinsi
milarcasesshal
lbeacc eptedby
thecourtasas uff
ici
entbond.

"(
8)Anyse
c ur
ityi
ssuedbycooperat
ive
sshallbeexemptf
rom t
hepr
ovi
si
onsoft
heSe
cur
iti
es
Ac
tprov
idedsuchsecuri
tys
hallnotbespec
ul at
ive
.

"ART.62.
 Priv
ilegesofCooperat
ives
.–Cooper
ativ
esregi
stere
dunderthi
sCode,
notwit
hstandingtheprovis
ionsofanyl
awt othecont
rary,beal
soac
cordedt
hefol
lowi
ng
pri
vil
eges
:

"(1)Coope r
ativ
esshallenj
oythepriv
ile
geofde posi
tingtheirs e
aledcashboxesor
containers,docume nt
soranyv al
uabl
epape rsi
nt hesafesoft hemuni c
ipalorci
ty
treasurersandot he
rgov er
nmentoffi
cesfre
eofc harge,andt hec us
todianofsuch
artic
lesshallis
suear ece
iptac
knowledgingtheartic
lesrecei
ve ddulywi tne
ssedby
anothe rperson;

"(2)Cooperati
vesor
gani
zedamonggover
nme nte mploy
ees,not
withst
andinganylaw
orregulat
iontothecont
rar
y,shal
lenj
oythef
re euseofanyavai
labl
espaceinthei
r
agency,whetherownedorrent
edbytheGovernme nt
;

"(3)Cooperati
ve srender
ingspecialtype
sofserv
ice
sandfaci
li
ti
essuchascol
dst
orage
,
ic
eplant,e
lec t
rici
ty,tr
ansport
ation,ands i
mil
arser
vic
esandfaci
li
ti
esshal
lse
cur
ea
fr
anchis
ethe refore
,ands uchcoope r
ativ
esshal
lopenthe
irmembe rs
hiptoal
lpe
rsons
quali
fi
edint heirareasofoperat
ion;

"(4)Inareaswhereappropriatecooper
ativ
ese xi
st,t
hepreferenti
alrighttosupply
governmentins
tit
uti
onsandage nci
esri
ce,cornandot hergrains
,fishandot her
marineproduct
s,me at,e
ggs,mi l
k,veget
ables
,tobaccoandot heragricult
ural
commodi ti
espr
oduce dbythe i
rme mbersshallbegrante
dt othec ooperati
ves
concerne
d;
"(5)Pref
erentialtreat
me nti
ntheallocat
ionoffer
til
iz
ers
,inc
ludingse
e dsandothe
r
agri
cul
turalinput sandimplements
,andi nri
cedis
tri
buti
onshallbegrantedto
cooper
ative
sbyt heappropri
ategovernmentagenci
es;

"(6)Pre
fe r
enti
alandequit
ablet
reat
me nti
ntheal
loc
at i
onorcontr
olofbot
tomr i
esof
comme rc
ialshi
ppingv
e s
selsi
nconnect
ionwit
htheshipmentofgoodsandproducts
ofcooperati
ves
;

"(7)Coope rativesandt he i
rfede rati
ons,suchasf arm andf is
herypr oduc e
rsand
supplier
s,mar ke tvendor sands uc hothercoope ratives,whichhav efort heirprimary
purposet hepr oduc t
ionand/ ort hemar ke t
ingofpr oductsfrom agricul
tur e,fis
heri
es
ands malle nt
r epreneurialindustriesandf ederationst here
of,shallhavepr ef e
renti
al
ri
ght si
nt hemanage mentofpubl icmarke t
sand/ orle as
eofpubl icmar ketf aci
li
ti
es,
stal
lsors paces:Pr
  ovided,Thatt he seri
ghtss hallonlybeut ili
zede xc
lusivelyby
coope r
atives:
 Provided,f
 urther,Thatnoc oope r
ativef ormingaj ointventur e,
partnershiporanyot hers i
mi l
arar rangeme ntwi thanon- cooperati
v eentitycan
util
izetheseright s
;

"( 8)Coope rati

vesengagedincreditser
vicesand/orfede
r ati
onss hallbeent
itl
edto
loanscr editli
nes,re
discount
ingoft hei
rloannot e
s,andot hereli
giblepaperswit
hthe
De vel
opme ntBankoft hePhili
ppines,t
heL andBankoft hePhi l
ippinesandother
financialinsti
tuti
onsexcepttheBangkoSe ntralngPil
ipi
nas( BSP);

"ThePhi l
ippineDe pos i
tIns
uranceCor poration(PDIC)andot hergovernment
agencie
s,gov ernme nt-ownedandc ontroll
e dcorporati
onsandgov ernmentf i
nancial
ins
titut
ionss hallprovidete
chnicalas si
stancetor egi
ster
e dnati
onalfeder
ationsand
unionsofc oope rat
iveswhichhav es i
gnific
ante ngageme ntinsavi
ngsandc redit
operati
onsi nor derforthesef
e derationsanduni onst oestabl
ishand/orstr
e ngthe
n
thei
rownaut onomousc ooperati
vede positinsur
ances y
s t
ems;

"(9)Apubl i
ctransportservi
cecooperat
ivemaybee ntitl
edtofinancingsupportfor
theacquis
iti
onand/ ormaintenanceofl
andands eat r
ansportequipme nt,f
acil
it
ies
andpartsthrought heprogram ofthegover
nme ntfinanci
alinst
ituti
ons.Itshal
lhave
theprefer
entialri
ghtt ot
hemanage mentandoperationofpublicterminalsandports
whe t
herlandors eat r
ansportwherethecooper
ativeope rat
esandons ec
uringa
franc
hiseforacti
veorpot enti
alroutesf
orthepublictransport
;

"(10)Coope r
ati
vestrans
acti
ngbus i
nesswi t
ht heGovernmentofthePhili
ppinesor
anyofitspoli
tic
alsubdiv
isi
onsoranyofi tsagenci
esorinstr
ume nt
ali
tie
s,incl
uding
government-ownedandc ontr
olle
dc orporati
onsshal
lbee xemptfrom
prequal
ifi
cati
onbiddingrequir
eme ntsnotwithst
andingtheprovi
si
onsofRe publi
cAct
No.9184,otherwis
eknownas ,theGov ernmentProcurementAct;

"(11)Cooperat
iveshalle
njoytheprivi
legeofbei
ngre
prese
ntedbythepr
ovi
nci
alor
ci
tyfis
calortheOffic
eoft heSol
ici
torGe ne
ral
,fre
eofchar
ge,ex
ceptwhent
he
advers
epartyistheRepublicoft
hePhilippi
nes;

"(12)Coope r
ati
ve sorganiz
edbyf ac
ultyme mbersande mployeesofeducati
onal
inst
itut
ionsshal
lhav ethepr e
fer
e nt
ialri
ghtinthemanage me ntofthecanteenand
otherservi
cesre
lat e
dt otheoperati
onoft heeducati
onali
ns t
itut
ionwhe retheyar
e
employed:Provi
de d,Thatsuchservi
cesareoperatedwithi
nt hepremisesofthesai
d
educati
onalinst
itution;and
 "(13)Theappr opriat
ehousingagenc i
esandgov e r
nme ntfinanci
alins
tituti
onsshal
l
cr
e at
eas pec i
alwi ndowforfinanci
nghous ingpr ojec
tsunde rt
akenbyc ooperati
ves
,
withintere
s tratesandtermse qualto,orbe t
terthant hosegivenforsocial
ize
d
housingprojects.Thisfi
nancingshallbeinthef orm ofblanketloansorlong-ter
m
whole s
aleloanst oquali
fie
dc ooperati
ves,withoutne edforindivi
dualpr oc
essi
ng.

"TheAut
hori
ty,i
nconsult
ati
onwiththeappropr
iat
egover
nmentagenc
iesand
conc
erne
dcooperat
ivese
ctor
,shal
lis
suerule
sandregul
ati
onsonal
lmatters
conc
erni
nghousi
ngcooperat
ive
s."

SEC.6.
 Art
icl
e64ofChapt
erVIonIns
olv
enc
yofCoope
rat
ive
soft
hes
ameCodei
she
rebyr
enumbe
red
andame ndedtor
ead,asf
oll
ows:

CHAPTERVI
I
NSOL
VENCYOFCOOPERATI
VES

"ART.63.Pr
  oc
eedi
ngUponInsolv
ency.-I
nc aseacooper
ati
veisunabl
etof
ulf
il
litsobl
igat
ions
tocr
editor
sduetoinsol
venc
y,suchcooperati
vemayapplyforsuc
hr e
medi
esasitmayde em
fi
tundertheprovi
si
onsofActNo.1956,asame nded,ot
herwis
eknownastheInsol
vencyLaw.

"Nothi
nginthi
sAr
tic
le,howe
ver
,pr
ecl
ude
scr
edi
tor
sfr
om s
eeki
ngpr
ote
cti
onf
rom s
aid
ins
olve
ncyl
aw."

SEC.7.
 Ar
tic
les65,66.67,68,69,70and71ofChapt
erVIIonDis
sol
uti
onofCoope
rat
ive
soft
hes
ame
Codeareherebyrenumbe r
edandame ndedt
or e
ad,asf
ollows
:

CHAPTERVI
I
DI
SSOL
UTI
ONOFCOOPERATI
VES

"ART.64. Vol
  untaryDissolutionWher enoCr editorsar eAf fect
ed.–I fthedissol
ut i
onofa
cooperativedoe snotpr ejudicet her i
ghtsofanyc reditorhav i
ngac laim againstit,the
dis
solutionmaybeaf fectedbyamaj orit
yv oteoft heboar dofdi rec
t ors,andbyar esolution
dulyadopt edbyt heaf fi
rmat ivev oteofatl eastthre e-
f ourths(3/4)ofal ltheme mbe rswi th
voti
ngr ights,presentandc onstituti
ngaquor um atame eti
ngt obehe lduponc alloft he
dir
ectors:Pr
  ov i
ded,Thatt henot iceoftime ,placeandobj ectoftheme etingshallbe
publis
he dfort hree(3)c ons e
c utivewe eksinane ws pape rpubl i
shedi nt heplacewhe rethe
pri
nc i
palof f
iceofs ai
dc oope rat i
veislocated,ori fnone ws paperispubl i
shedins uchpl ace,i
n
ane wspape rofge neralcirculationi nthePhi l
ippine s:
 Prov i
ded,f
 urther ,Thatthenot iceof
suchme eti
ngi ssenttoe achme mbe rofrecorde itherbyr egist
eredmai lorbype rsonal
deli
veryatl eastthirt
y( 30)day spriortosaidme eting.Ac opyoft her esoluti
onaut horizing
thedissoluti
ons hallbec ertif
ie dtobyamaj ori
tyoft heboar dofdi rec t
orsandc ount ersi
gne d
bytheboar ds e
cretary.TheAut horityshallthereuponi ssuet hecertifi
cateofdi s
solution.

"ART.65.  VoluntaryDi ssolut i

onWher eCreditorsAreAf f
ected.–Wher et hedis
sol ut
ionofa
coope rati
vemaypr ejudicether ightsofanyc redit
or,thepe ti
ti
onfordissolut
ions hallbefi
led
witht heAut hority.Thepe t
it i
ons hallbesi
gne dbyamaj ori
tyofitsboardordi r
ec tor
sorother
off
ic e
r smanagi ngi tsaffair
s ,veri
fiedbyitschairpers
onorboar dsecr
etaryoroneofi ts
dir
e ctorsands halls etforthal lcl
aimsandde mandsagai nstitandthatit
sdi s
solutionwas
resolveduponbyt heaf fi
rmat ivev oteofatl
e astthree-f
ourths(3/4)ofalltheme mbe rswi
th
votingr i
ghts,prese ntandc ons t
ituti
ngaquor um atame etingcal
ledforthatpur pose .

"I
fthepe
tit
ioni
ssuf
fi
ci
enti
nfor
m ands
ubs
tanc
e,t
heAut
hor
itys
hal
lis
sueanor
derr
eci
ti
ng
thepur pos eofthepetiti
onands hallfixadat ewhi chshal
lnotbel essthant hir
ty( 30)nor
mor ethans i
xty(60)daysaf t
erthee ntryoftheor der.Bef
oresuc hdate ,acopyoft heor der
shallbepubl ishedatleastonceawe ekforthr e
e( 3)consec
utivewe eksi nane wspape rof
gene ralc i
rculati
onpubl i
shedint hemuni cipali
tyorc i
tywhe r
et heprinc i
paloffi
ceoft he
coope rat i
veiss i
tuat
edori ntheabs enceofs uchlocalnewspape r,i
nane wspape rofge neral
cir
c ulationi nthePhili
ppines,andac opys hallli
kewisebepos t
edf orthr ee(3)cons e
cut i
ve
we eksi nt hree(3)publicplacesi
nt hemuni ci
pali
tyorc i
tywhe rethec ooperati
ve ’
sofficeis
located.

"Upone xpiryofthefive(5)daynoti
cet ofil
eobject
ions,theAut hori
tys
hallpr
oceedtohear
thepetiti
onandt ryanyissuerai
sedintheobj ec
tionfil
ed;andi ftheobj
ecti
oniss
uffic
ient
andthemat er
ialal
legati
onsofthepetiti
onar eproven,itshalli
ssueanordert
odissol
vethe
cooperati
veanddi re
c tt
hedisposi
ti
onofi tsasse
tsinac c
or dancewithex
isti
ngrul
esand
regul
ations.Theorderofdissol
uti
ons hallse
tforththerein:

"(
1)Theas
set
sandl
iabi
li
ti
esoft
hec
oope
rat
ive
;

"(
2)Thec
lai
m ofanyc
redi
tor
;

"(
3)Thenumbe
rofme
mbe
rs;and

"(
4)Thenat
ureande
xte
ndoft
hei
nte
res
tsoft
heme
mbe
rsoft
hec
oope
rat
ive
.

"ART.66.
 I
nvol
unt
aryDis
sol
uti
on.–Ac ooper
ati
vemaybedi
ssol
vedbyor
derofac
ompe
tent
cour
tafte
rdueheari
ngonthegroundsof:

"(
1)Vi
olat
ionofanyl
aw,r
egul
ati
onorpr
ovi
si
onsofi
tsby
laws
;or

"(
2)I
nsol
venc
y.

"ART.67.Di
  s
sol
utionbyOrderoftheAut
hori
ty.–TheAut
horit
ymays uspendorrev
oke ,af
ter
duenotic
eandhe ari
ng,t
hecert
ifi
cat
eofregi
str
ati
onofacooperat
iveonanyofthefol
lowing
grounds
:

"(
1)Hav
ingobt
aine
dit
sre
gis
trat
ionbyf
raud;

"(
2)Ex
ist
ingf
orani
ll
egalpur
pos
e;

"(3)Will
fulv
iol
ati
on,de
spi
tenot
icebyt
heAut
hor
ity
,oft
hepr
ovi
si
onsoft
hisCode
oritsby
laws;

"(
4)Wi
ll
fulf
ail
uret
oope
rat
eonac
oope
rat
ivebas
is;and

"(
5)F
ail
uret
ome
ett
her
equi
redmi
nimum numbe
rofme
mbe
rsi
nthec
oope
rat
ive
.

"ART.68. Di
  ssoluti
onbyFai luretoOrgani
zeandOper ate.-Ifac oope r
ativ
ehasnot
comme nc edbus inessandi tsoperati
onwithintwo( 2)ye arsaf t
e rt
hei ss
uanceofits
cer
tifi
cateofr egist
rationorhasnotc ar
rie
doni tsbus i
ne ssfort wo( 2)consec
utiv
ey ears,t
he
Authorityshallsendaf ormalnot i
cetothesaidcoope r
ativet os howc auseastoitsfail
ureto
operate.Fail
ureoft hec ooperati
vetopromptlyprovidejus t
ifiablecauseforitsf
ailureto
operateshallwar rantt heAut hori
tytodel
eteitsnamef rom t her osterofregi
ste
re d
 c
oope
rat
ive
sands
hal
lbede
eme
ddi
ssol
ved.

"ART.69. Li
  quidationofaCooper ati
ve.–Ev erycooperativ
ewhos ec harterexpir
esbyitsown
li
mitationorwhos eexis
tenceist
erminate dbyvoluntarydiss
olutionort hroughan
appropr i
atejudicialproceedi
ngshallneverthel
esscontinuetoe xi
stfort hree(3)year
safter
thetimei tisdissolved;nottoconti
nuet hebus i
nessforwhi c
hi twase stabl
ishedbutforthe
purposeofpr ose cuti
ngandde fendi
ngs uitsbyoragainstit;se
ttle
me ntandc l
osureofit
s
aff
airs;disposi
tion,conv ey
anceanddi s
tributi
onofi t
spr opert
iesandas sets.

"Atanyti
medur i
ngt hesai
dthree(3)year
s,t
hecooperati
veisauthori
zedandempowe re
dto
conveyal
lofit
sproperti
estot
rusteesf
orthebene
fitofit
sme mbe rs
,credi
tor
sandother
pers
onsininte
res
t.From andaft
eranys uc
hconvey
ance,alli
ntere
s t
swhi c
hthecooper
ati
ve
hadintheproper
tie
sar ete
rminate
d.

"Uponthewi ndingupofthecooperat
iveaf
fairs
,anyas
setdi
str
ibutabl
etoanycr
edit
or,
shar
eholderorme mberwhoi sunknownorc annotbef
oundshallbegive
ntothefe
derat
ion
oruniontowhi c
ht hec
ooperati
veisaff
il
iat
edwi th.

"Ac ooperat
iveshal
lonlydis
tri
buteitsass
etsorproper
tie
suponlawf
uldis
sol
utionandaft
er
payme ntofalli
tsdebtsandli
abil
it
ies,ex
ceptinthecaseofde
cre
aseofs
harecapit
aloft
he
cooperati
veandasot herwi
seall
owe dbythisCode.

"ART.70.Rul
  esandRegul
ati
onsonLi
qui
dati
on.–TheAuthori
tys
hal
lis
suet
heappr
opr
iat
e
impl
eme nti
ngguidel
inesf
ortheli
qui
dat
ionofcoope
rat
ive
s."

SEC.8.
 Ar
tic
les72,73,74,75,76,77,78,79and80ofChapte
rVII
IonCapit
al,Pr
ope
rty
,andF
undsof
thesameCodear eherebyrenumberedandame nde
dtoread,asf
oll
ows:

CHAPTERVII
I
CAPI
TAL
,PROPERTY,ANDF
UNDS

"ART.71.
 Capit
al.-Thecapi
tal
iz
ati
onofcooperat
ivesandtheac
counti
ngpr
oc e
duress
hal
lbe
gover
nedbyt heprovis
ionsoft
hisCodeandtheregulat
ionswhi
chshal
lbei
ssued.

"ART.72.
 Capi
talSour
ces.-Cooper
ati
vesre
gis
ter
edunde
rthi
sCodemayde
riv
ethe
irc
api
tal
fr
om anyorallofthefol
lowingsourc
es:

"(
1)Me
mbe
r’ss
har
ecapi
tal
;

"(
2)L
oansandbar
rowi
ngsi
ncl
udi
ngde
pos
its
;

"(3)Rev
olvi
ngcapi
talwhic
hc ons
ist
soft
hede
fer
redpay
mentofpat
ronager
efunds
,
orint
eres
tonsharecapi
tal
;and

"(4)Subsidies
,donat ions,legacies,grants,aidsandsuchotherassi
stancefrom any
localorf
or e
igni nst
ituti
onwhe therpubl i
corpr iv
ate:Pr
  ov
ided,Thatcapit
alcoming
from suc
hs ubsides,donat i
ons ,legacies
,gr ants
,aidsandotherassi
stanceshal
lnotbe
dividedi
ntoindi vi
duals harec apitalholdi
ngsatanyt i
mebuts hal
linste
adf or
m part
ofthedonat edcapitalorf undoft hecoope r
ati
ve.

"Upondi
ssol
uti
on,s
uchdonat
edc
api
tals
hal
lbes
ubj
ectt
oes
che
at.
"ART.73.Li
  mitati
ononShareCapi
talHol
dings
.-Nomemberofpri
mar yc
ooper
ati
veother
thancooperati
veitse
lfs
hal
lownorhol dmorethant
e perc
n  ent
um (10%)oft
heshar
ec api
tal
ofthecooperativ
e.

"Whe reame mbe rofc ooperati

vedi es,hishe i
rshallbee ntit
ledtot hesharesofthe
decede nt:
 Prov i
ded,Thatthet otalshar eholdingoft hehe i
rdoe snote xceedte per
n 
centum  (10%)oft hes harecapitaloft hec ooperat
ive; Provided,f
 urther,Thatthehei
rquali
fy
andi sadmi t
tedasme mbe r
soft hec oope r
at i
ve:
 Pr
ov idedf i
nally 
,Thatwhe ret
heheirfai
lst
o
qualifyasame mberorwhe rehistot alshareholdinge xc
e edsten percentum (10%)ofthe
sharec apital,theshareors haresex cesswi l
lrever
tt ot hec ooperativeuponpay menttothe
heiroft hev alueofsuchs hares.

"ART.74.
 As
signmentofShar
eCapi
talContr
ibut
ionorInterest
.-Subj
ecttotheprov
isi
onsof
thi
sCode,nome mbershal
ltr
ans
ferhisshar
esorint
ere
s tinthecooperat
iveoranypart
the
reofunle
ss.

"(
1)Hehashe
lds
uchs
har
ecapi
talc
ont
ribut
ionori
nte
res
tfornotl
esst
hanone(
1)
ye
ar.

"(2)Theass
ignmentismadetot
hec ooper
ati
veortoamemberoft
hecooperat
iveor
toape r
sonwhofall
swithi
nthefi
eldoftheme mbe
rshi
poft
hecooper
ati
ve;and

"(
3)Theboar
dofdi
rec
tor
shasappr
ove
dsuc
has
signme
nt.

"ART.
75.Capi
  t
alBuil
d-Up.-Teby l
awsofeveryc
ooperat
iveshallbepr ov
idedforareas
onabl
e
andreal
is
ticmembe rcapi
talbuil
d-upprogr
am toal
lowthec ontinuinggrowthofthe
membe r
s’inv
estmentintheircooper
ati
veasthei
reconomiccondi t
ionsconti
nuetoimprove
.

"ART.76.Shar
  es.
-Theterm "shar
e"r ef
erst
oaunitofcapi
tali
napr imarycoope rat
ivethepar
val
ueofwhi chmaybef i
xedtoanyf i
gurenotmorethanOnethousandpe s
os( P1,000.00)
.
Theshareofcapit
alofacooperat
iveisthemoneypaidorr
equiredtobepaidfort he
operati
onsofthecooper
ati
ve.Theme thodfort
heiss
uanceofsharecer
tif
icat
ess hall
pres
c r
ibedini
tsbylaws
.

"ART.77.Fi
  nes
.-Thebyl
awsofacooper
ati
vemaypresc
ribeafineonunpaidsubsc
ribe
dshar
e
capi
tal.Pr
ov i
ded,t
hats
uchfi
neisfai
randreas
onabl
eunde rt
hec i
rcums
tance
s .

"ART.
78.
 I
nves
tmentofCapi
tal
.-Ac
oope
rat
ivemayi
nve
sti
tsc
api
tali
nanyoft
hef
oll
owi
ng:

"(
a)I
nshar
esorde
bent
ure
sors
ecur
iti
esofanyot
herc
oope
rat
ive
;

"(
b)I
nanyr
eput
abl
ebanki
nthel
ocal
it
y,oranyc
oope
rat
ive
;

"(
c)I
nse
cur
iti
esi
ssue
dorguar
ant
eedbyt
heGov
ernme
nt;

"(
d)I
nre
als
tat
epr
imar
il
yfort
heus
eoft
hec
oope
rat
iveori
tsme
mbe
rs;or

"(
e)I
nanyot
hermanne
raut
hor
ize
dint
heby
laws
.

"ART.79.
 Revolv
ingCapi
tal
.–Thegeneralass
emblyofanyc
ooper
ati
vemayauthor
izethe
boardofdir
ectorst
orais
ear e
vol
vingc
apitaltos
trengt
heni
tsc
apit
alst
ruc
tur
ebyde f
erri
ng
 thepayme ntofpatronagerefundsandi ntere
stons harecapit
alorbyt heaut hor i
zed
deducti
onofape rcentagefrom t heproc
eedsofpr oductssol
dors er
v i
cesrende red,orperunit
ofproductorservi
ceshandl ed.Theboardofdi rec
torsshalli
ssuerevol
vingc apitalcer
tif
icat
es
withseri
alnumbe r,name ,amount ,andrateofinteres
tt obepaidands halldistinct
lyset
for
ththetimeofr etir
eme ntofs uchcert
ifi
catesandtheamount st
ober etur ned."

SEC.9.
 Ar
tic
les81,82,83,84and85ofChapt
erIXonAudi
t,Inqui
ryandMembe
rs’Ri
ghtt
oEx
ami
ne
ofthesameCodear eherebyr
enumberedandamende
dtor e
ad,asfol
lows
:

"ART.80.AnnualAudi
  t.–Cooper
ati
vesregist
eredundert
hisCodeshal
lbes
ubjectt
oan
annualfi
nanci
al,pe
rformanceandsocialaudit
.Thefi
nanci
alaudi
tshal
lbeconduct
edbyan
ext
ernalaudi
torwhos ati
sfi
esal
lthefoll
owingquali
fi
cati
ons:

"(1)Hei
sinde
pende
ntoft
hec
oope
rat
iveoranyofi
tss
ubs
idi
aryt
hathei
saudi
ti
ng;
and

"(2)Heisame mberi
ngoodst
andingoft
hePhi
li
ppineIns
tit
uteofCe
rti
fi
edPubli
c
Account
ants(
PICPA)andi
sac
credi
tedbybot
htheBoardandAccount
ancyandthe
Authori
ty.

"Thesoci
alaudi
tshal
lbec
onduc
tedbyani
nde
pende
nts
oci
alaudi
torac
cre
dit
edbyt
he
Author
ity
.

"Perf
ormanceandsoci
alauditr
eport
swhichc
ontai
nthefi
ndi
ngsandr
ecomme
ndat
ionsof
theaudi
tors
hallbesubmitt
edtotheboar
dofdir
ector
s.

"TheAuthori
ty,i
nc onsul
tat
ionwitht
hecooper
ati
ves
ect
or,s
hal
lpr
omul
gat
ether
ule
sand
st
andardsfort
hes oci
alauditofc
ooper
ati
ves
.

"ART.81.Audi
  tReport.–Theaudi tors
halls
ubmi tt
otheboar dofdi
rectorsandtotheaudit
commi t
teethefinanci
alauditreportwhichshal
lbeinaccordancewi
ththege nerall
yaccept
ed
audi
tingstandar
dsf orcooperat
ivesasj
ointl
ypromulgatedbythePhil
ippineInst
ituteof
Cert
if
iedPublicAccountants(PI
CPA)andt heAuthori
ty.

"Ther
eaft
er,t
heboardofdir
ect
orss
hal
lpr
ese
ntt
hec
ompl
eteaudi
tre
por
ttot
hege
ner
al
ass
emblyinit
snextmeet
ing.

"ART.82.Nonl
  i
abil
it
yforDefamati
ons.–Theaudit
orisnotl
iabl
etoanypers
oni nanac
tion
fordef
amat i
onbasedonanyact,done,oranyst
ate
me ntmadebyhimingoodfaithi
n
connec
tionwithanymatterheisauthori
zedorr
equir
edtodopursuantt
othisCode.

"ART.83.
 Ri
ghttoExamine.–Amembers hallhavetheri
ghtt
oe xaminetherecor
dsrequi
red
tobekeptbythecooper
ativeunderArti
cl
e52oft hi
sCodeduri
ngr eas
onablehourson
busi
nessday
sandhemayde mand,inwr i
ting,foracopyofex
cerptsfr
om saidrec
ords
wit
houtchargeexc
eptthecostofproducti
on.

"Anyof fic
eroft hecooper
ati
vewhos hallrefusetoall
owanyme mberofthec oope
rativeto
exami neandc opyexcerpt
sfrom i
tsrec ordsshallbeli
ablet
os uc
hme mbe rfordamage sand
shallbeguilt
yofanof f
ensewhichshallbepuni s
hableunderArti
cl
e140oft his
Code :
 Provi
ded,Thatifsuchref
usalispur suanttoar es
oluti
onororderoftheboar dof
dire
c t
ors,theliabi
li
tyunderthi
sarticleshallbei mposeduponthedir
ectorswhov otedfor
 suchref
usal:Pr
  ovi
ded,f
 ur
ther,Thatitshallbeade fens
etoanyac t
ionunderthi
sarti
clethat
theme mberde mandingtoexami neandc opye xc
erptsfr
om thecooperat
iver
ecordshas
improperl
yus edanyinfor
mations ecur
edt hroughanypr i
orexaminati
onoftherecordsof
suchcooperati
veorwasnotac ti
ngi ngoodf ait
horf oralegi
ti
matepurposeinmakinghis
demand.

"ART.84. Saf
etyofRecor
ds.–Ever
ycooperativ
es hal
l,atit
spri
ncipalof
fic
e,ke e
pand
caref
ullypres
ervetherec
ordsre
quire
dbyt hisCodet obeprepare
dandmai ntai
ned.I
tshal
l
takeallneces
saryprec
auti
ontopreventi
tsloss,dest
ructi
onorfalsi
fi
cat
ion."

SEC.10.
 Ar
tic
les86and87ofChapt
erXonAl
loc
ationandDis
tri
but
ionofNe
tSur
plusoft
hes
ame
Codeareherebyrenumbe
redandamende
dtoread,asf
oll
ows:

CHAPTERX
AL
LOCATI
ONANDDISTRI
BUTI
ONOFNETSURPL
US

"ART.85. NetSurplus.–Notwit
hstandi
ngtheprovisi
onsofexi
stinglaws,thenetsurpl
usof
cooperati
vesshallbede t
ermi
nedinac c
ordancewithit
sbylaws.Ever
yc ooperat
iveshal
l
deter
mi neitsnetsurplusatt
hecloseofever
yfis
calyearandatsuchot herti
me sasmaybe
presc
ribedbyt hebylaws.

"Anyprovis
ionoflawtothec ontrarynot wit
hstanding,thene tsurplusshallnotbec onst
r ue
d
asprof
itbutasane x
cessofpay me ntsmadebyt heme mbe rsforthel oansborrowed,ort he
goodsandse r
vic
esavai
ledbyt hemf rom thecoope rati
veort hediffe
r enceoftherightful
amountduet otheme mbersfort heirproductssoldors e
rvicesrender e
dt othecoope r
ati
v e
inc
ludi
ngot heri
nfl
owsofas s
e tsresulti
ngfrom itsotherope rat
ingac ti
vit
iesandwhi chshall
bedeeme dtohavebeenreturne dtot hemifthes amei sdis
tributedaspr escr
ibedher e
in.

"ART.86.
 Or
derofDi
str
ibut
ion.–Thenets
urpl
usofe
ver
ycoope
rat
ives
hal
lbedi
str
ibut
edas
fol
lows:

"(1)Anamountforthereservefundwhi c
hs hal
lbeatleas
tt e
n perc
entum (10%)of
netsur
plus
:Pr
  ov
ided,That,inthefi
rstfi
ve(5)y e
arsofoperati
onaft
erregi
strat
ion,
thi
samountshal
lnotbel e
s sthanfi
ft
y perc
  entum (50%)ofthenetsur
plus:

"(a)Thereservefundshallbeusedforthestabi
li
tyofthecooperat
iveandto
me etne
tlossesinitsoper
ations.Thege
ne r
alassemblymayde c
reasethe
amountallocatedtothereservefundwhent herese
rvefundalr
eadye xc
eeds
thesharecapit
al.

"Anysum r
ecove
redonit
emspr
evi
ous
lyc
har
gedt
other
ese
rvef
unds
hal
lbe
cr
edit
edtosuchfund.

"(b)Ther e
ser
vefundshallnotbeutil
iz
edf orinvest
me nt,otherthant hose
all
owedi nthi
sCode.Suchsum ofthereser
v efundine xc
e s
soft hes hare
capi
talmaybeus edatanyti
mef oranyprojectthatwoulde xpandt he
operat
ionsofthecooper
ativeupontheresoluti
onoft hege ner
alass embly.

"(
c)Uponthedi
ssol
uti
onoft
hecooper
ati
ve,t
heres
ervef
undshallnotbe
di
str
ibut
edamongthemembers
.Thegene
ralass
emblymayr
esolv
e s:
 "(i
)Toestabl
is
hausufr
uct
uar
ytr
ustfundforthebenef
itofany
fe
derat
ionoruniont
owhicht
hecooperat
ivei
saff
il
iat
ed;and

"(i
i)Todonate,cont
ribut
e,orot
herwi s
edisposeoftheamountfor
thebenefi
tofthecommuni t
ywhe r
et hecooperati
veoperat
es.I
fthe
me mberscannotdec
ideuponthedisposalofthereser
vefund,t
he
sameshallgotothefeder
ati
onoruni ontowhi chthecooper
ati
veis
aff
il
iat
ed.

"(2)Anamountf orthee ducati

onandt rai
ningfund,shallnotbemor ethante per
n 
centum (10%)oft hene tsurpl
us.Thebylawsmaypr ov
idet hatcert
ainfeesora
portionthereofbecreditedtosuchfund.Thefunds hallprovideforthetrai
ning,
developme ntandsimilarothercooperat
iveacti
vit
iesgearedt owardsthegrowthof
thecoope r
ativemoveme nt:

"(a)Halfoft heamount st ransferredtothee ducationandt rainingfund

annuallyunde rthissubsections hallbespentbyt hec ooperati
vef oreducat
ion
andtraini
ngpur poses;whilet heothe rhal
fmayber emitt
edt oauni onor
feder
ationc hosenbyt hec oope rati
veorofwhi chi tisame mbe r
.Thes ai
d
unionorf ederati
ons hallsubmi ttot heAuthorit
yandt oitscontr i
buti
ng
cooperati
vest hefoll
owi ngs chedules:

"(i
)Li
stofcoope
rati
veswhi
chhav er
emitte
dt he
irre
spe
cti
ve
Coope
rati
veEducat
ionandTrai
ningFunds(CETF)
;

"(i
i)Bus
ine
ssc
ons
ult
anc
yas
sis
tanc
etoi
ncl
udet
henat
ureandc
ost
;
and

"(i
ii
)Othertr
ainingact
ivi
ti
esunder
take
ns pec
ify
ingt
her
eint
he
nat
ure,par
tic
ipantsandcostofe
achact
ivi
ty.

"(b)Upont hedi
ssol
uti
onofthecooperat
ive
,theunex
pendedbalanc
eofthe
educati
onandt r
aini
ngfundappe
r t
aini
ngtothecooper
ati
veshal
lbecre
dite
d
tothecooperat
iveeduc
ati
onandtraini
ngfundofthechos
enunionor
feder
ation.

"(3)Anamountf orthecommuni t
yde vel
opmentf
und,whi
chshal
lnotbelesst
han
threeperc
  entum( 3%)ofthenetsurplus
.Thecommunit
ydeve
lopmentfundshallbe
usedforproje
c t
sorac t
ivi
ti
esthatwillbenef
itt
hecommuni
tywherethecooper
at i
ve
operates
.

"(
4)Anopti
onalf
und,alandandbui
ldi
ng,andanyot
herne
ces
sar
yfundt
het
otalof
whic
hshal
lnotex
ceedse
v e perc
n  ent
um (7%).

"(5)Ther e
mai ningne ts
urpl
usshallbemadeav ai
labletotheme mbersi
nthef or
m of
int
er es
tonshar ecapit
alnottoexceedthenormalrateofr e
turnouri
nv e
stmentsand
patronagerefunds:Pr
  ovi
ded,Thatanyamountre mainingaftert
heal
lowableinter
est
andt hepatronagerefundhavebeende duc
tedshallbec r
edite
dtothereser
vefund.

"Thesum al
loc
atedforpatr
onagere
fundsshal
lbemadeav ai
lableatt
hesamer at
etoall
patr
onsofthecoope
r at
ivei
nproport
iontothe
iri
ndi
vidualpatronage
:Pr
  ov
ided,That
:
 "(a)Inthecaseofamembe rpatronwit
hpai d-
ups harecapi
talc
ontri
buti
on,hi
s
proport
ionateamountofpatronager
efundshallbepaidtohim unle
ssheagree
sto
cr
e di
ttheamounttohisaccountasaddit
ionalshar
ec api
talc
ontri
bution;

"(
b)Inthecaseofame mberpatronwithunpai
dshar
ecapit
alcont
ributi
on,hi
s
pr
oport
ionateamountofpatronageref
undshal
lbecr
edit
edtohisaccountunt
ilhi
s
ac
countunti
lhisshar
ecapi
talcontri
buti
onhasbee
nfull
ypaid;

"(c)Inthec aseofanon- membe rpatron,hisproporti

onateamountofpat ronage
refundshallbes etasideinage neralfundforsuchpat r
onsands hallbeal l
ocate
dt o
indivi
dualnon- me mbe rpatr
onsonl yuponr equestandpr e
sentati
onofe vi
denceof
theamountofhi spatronage
.Theamounts oall
ocatedshal
lbec re
ditedt osuch
patrontowar dpay me ntofthemi nimum c api
talcontri
buti
onf orme mbe rshi
p.Whe n
as um equalt othisamounthasac cumul atedatanyt i
mewi thinape ri
ods peci
fiedi
n
theby l
aws,s uchpat r
ons hal
lbede eme dandbe comeame mbe rofthec ooperati
veif
hes oagreesorr equestsandc omplieswiththepr ovi
si
onsoft hebylawsf oradmissi
on
tome mbe rship;and

"(d)Ifwi t
hinanype ri
odoft i
mes peci
fiedi
nt hebylaws,anys ubscri
berwhohasnot
full
ypai dhissubscr
ibeds harecapi t
aloranynon- me mbe rpatronwhohas
accumul at
e dthesum nec ess
aryf orme mbershipbutwhodoe snotreque stnoragr ee
tobe comeame mberorfailstoc omplywi t
ht heprovisi
onsoft heby l
awsf or
admi ssi
ont ome mbership,theamounts oaccumul atedorc redi
tedtot heiraccount
togetherwi t
hanypar toft hege neralfundfornonme mbe rpatronsshallbec r
e dit
ed
tother ese
r vefundortot hee ducationandt r
aini
ngf undoft hec ooperati
v e
,att he
optionoft hecooperati
ve."

SEC.11. 
Arti
c l
es88,89,90,91,92,93,94and95ofChapte
rXIont
heSpe
cialProv
isi
onsRelat
ingt
o
Agrari
anRe form Cooper
ativ
esofthes ameCodear
eherebyre
number
edret
itl
edandame ndedto
read,asfol
lows :

CHAPTERXI
AGRARI
ANREFORM COOPERATI
VES

"ART.87.
 Cover
age.–Thepr ovis
ionsofthisChapt
ershallpri
mar i
lygove
rnagr
ari
anref
orm
cooper
ati
ves:
 Provided,Thattheprovi
sionsoftheotherchapter
softhisCodes
hal
lappl
y
suppl
etor
ilye
x c
e ptinsofarasthi
sChapterotherwi
sepr ovi
des.

"ART.88. Def
  i
niti
onandPur pose.–Anagr ari
anr ef
ormcoope r
ati
veisoneorgani
zedby
mar ginalf
armers,majorit
yofwhi chareagrari
anr ef
orm benef
ici
ari
es,f
orthepurposeof
developinganappropriatesys
tem oflandtenure,l
anddev e
lopment,l
andconsoli
dati
onor
landmanage me ntinareascover
edbyagr ari
anr ef
orm.

"Anagr
arianr
efor
mcoope
rat
iveasde
fine
dshal
lbeor
gani
zedf
oranyoral
loft
hef
oll
owi
ng
pur
poses
:

"(1)Todevelopanappr
opriat
esys
tem oflandtenur
e,l
anddeve
lopment
,land
consol
idat
ionorlandmanagementinareascov
eredbyagr
ari
anrefor
m;

"(
2)Tocoordinat
eandfaci
li
tatethedi
sse
mi nati
onofsci
ent
ifi
cmethodsof
pr
oduc
tion,andprovi
deass
istanc
einthestorage,t
rans
port
,andmarketi
ngoffarm
pr
oduc
tsforagrari
anref
orm benefi
ci
ari
esandt hei
rimmediat
efamil
y,here
inaf
ter
 r
efe
rre
dtoas"be
nef
ici
ari
es";

"(3)Topr
ovi
defi
nanc
ialf
aci
li
ti
est
obe
nef
ici
ari
esf
orpr
ovi
dentorpr
oduc
tiv
e
purpos
esatr
eas
onabl
ecost
s;

"(4)Toarrangeandfaci
li
tatet
heex
pe di
ti
oustr
ansfe
rofappr
opr
iat
eandsuit
abl
e
te
c hnol
ogytobenefi
ciar
iesandmar
ginalfar
mersatthel
owes
tposs
ibl
ecos
t;

"(5)Toprovi
desocialsecur
itybe
nefi
ts,heal
th,medi
calandsoci
ali
nsuranc
ebenef
it
s
andothersoci
alande c
onomi cbene
fit
sthatpromotethegener
alwelf
areofthe
agrar
ianref
orm benefi
ciari
esandmarginalfar
mers;

"(
6)Toprovi
denon-for
maleduc
ation,vocat
ional
/te
chni
calt
rai
ning,andl
ive
lihood
pr
ogramstobene
fic
iari
esandmarginalf
arme r
s;

"(
7)Toactasc
ondui
tsf
ore
xte
rnalas
sis
tanc
eands
erv
ice
stot
hebe
nef
ici
ari
esand
margi
nalf
armers
;

"(8)Toundert
akeac omprehens
iveandinte
gr at
eddeve
lopmentprogr
am inagrar
ian
refor
m andres
ett
leme ntar
easwithspec
ialconcernf
orthede
velopmentofagro-
based,mari
ne-
based,andcott
age-bas
edindustri
es;

"(
9)Tor
epr
ese
ntt
hebe
nef
ici
ari
esonanyoral
lmat
ter
sthataf
fec
tthe
iri
nte
res
t;and

"(10)Tounde
rtakes
uchotherec
onomicors
oci
alac
tiv
iti
esasmaybene
ces
sar
yor
inci
dent
ali
nthepursui
tofthef
oregoi
ngpur
pos
es.

"ART.89.Cooper
  ati
veEst
ate.–Landholdingsl
ikeplant
ati
ons,e
statesorhaci
endasacqui
red
bytheStatef
ort hebene
fitoftheworkersinaccordanc
ewiththeCompr ehensi
veAgrari
an
Refor
m Program whichshal
lbec ol
lec
tiv
elyowne dbytheworker-be
ne f
ici
ari
esundera
cooper
ativ
ese t
-up.

"ART.90. Infr
astr
uc t
ure.–Inagrari
anreform andr esettl
ementareas,theGov ernmentshall
granttoagr ari
anre f
ormcoope r
ativ
espreferenti
altreatmentinthec onst
ructi
on,
maintenanc eandmanage me ntofroads
,br i
dge s
,canals,wharve
s,por t
s,reser
voirs
,irr
igati
on
syst
ems ,wat e
rworkss y
stems,andotherinfrast
ructureswithgovernme ntfunding.Forthis
purpose,theGov ernmentshallprovi
detechnicalassi
stance,f
aci
li
ti
e sande qui
pme nttos uch
agrari
anr eformcoope r
ati
ves.

"ART.91. Leas
  eofPublicLands .–TheGov ernme ntmayl easepubli
cl andst oanyagr arian
refor
mc ooper
ativ
eforape riodnotexceedingtwe nt
y -
five(25%)y ears,subjecttorene walfor
anothert went
y-fi
ve(25)y e
ar sonl
y:Pr
  ovi
ded,Thattheappl i
cat
ionf orre newalshallbemade
one(1)y earbefor
ethee xpirati
onofthelease:Pr
  ovi
ded, furt
her,Thats uc hle
aseshal lbefor
theexclusiv
euseandbe nefitofthebenefi
ciari
esandmar ginalf
arme r
ss ubjectt
ot he
provi
sionsoftheCompr ehens iv
eAgrari
anRe form Program.

"ART.92.Pr
  ef
erentialRi
ght.–Inagrari
anr efor
m areas,anagrari
anrefor
mc oope r ativ
eshall
havetheprefe
renti
alr i
ghtinthegrantoffranchis
eandc e
rti
fi
cateofpubl
icconv eni enceand
neces
sit
yfortheope rati
onofpubli
cut i
li
tiesandserv
ic e
s:Pr
  ovi
ded,Thati
tme etst he
requi
rementsandc onditi
onsimposedbyt heappropriategover
nme ntage
ncygr ant ingthe
fr
anchis
eorc ert
if
icateofpubli
cconvenienceandne c
e ssi
ty.I
ftherei
sane l
ect
ricse rv i
ce
providerinthear ea,itshallupont her e
que stofanagr arianr eformc oope rativ
e,imme diatel
y
providee l
ectri
cse r
vicest otheagrarianreform ar eas.Ifthee lectr
icser v
icepr oviderfai
lsto
providethes erv
icesr eque s
tedwi t
hinape r
iodofone( 1)y e
ar ,theagr ari
anr eform
coope r
ativeconcerne dmayunde r
taketopr ov i
det hee le
ctrics e
r v
icesint hear eathroughits
ownr e
sour c
es.Allinve s
tme ntsmadebyt hes aidagr ari
anr eformc ooperativeforthe
elec
trifi
cati
onoft heagr ari
anr e
formr esettl
eme ntar e
ass hallbet hesubj ectofs al
etot he
elec
tricservi
cepr ovideronc eittakesont hese rvic
e .

"ART.93.Pr
  i
vil
eges.–Subje
c ttos
uc hr
easonabl
etermsandcondi
ti
onsast heDepart
mentof
Agrar
ianReform( DAR)andt heAuthor
itymayimpose,agr
ari
anref
ormc ooperat
ive
smaybe
gi
venthee xc
lusi
verightt
odoanyoral lofthefol
lowingec
onomicact
ivi
tie
sinagrari
an
ref
orm andreset
tlementareas;

"(1)Supplyanddistr
ibuti
onofconsumer,agri
cul
tural
,aqua-cult
ural
,andindust
rial
goods,product
ioninputs
,andrawmat er
ialsandsuppl
ies,machinery
,equi
pme nt
,
faci
li
ti
esandot herser
vic
esandrequir
eme ntsoft
hebenef i
ci
arie
sandmar gi
nal
farmersatreas
onableprice
s;

"(
2)Market
ingoft
hepr
oduc
tsands
erv
ice
soft
hebe
nef
ici
ari
esi
nloc
alandf
ore
ign
marke
ts;

"(3)Pr
oces
singofthemembers
’pr
oduct
sint
ofi
nis
hedc
ons
ume
rori
ndus
tri
algoods
fordomes
ticcons
umptionorf
orex
port
;

"(4)Provis
ionofe ss
enti
alpubli
cser
vic
esatc os
tsuchaspower,i
rri
gat
ion,pot
able
water,passengerand/orcar
got r
ans
portati
onbylandorsea,c
ommuni cat
ionser
vic
es,
andpubl i
che al
thandme dicalc
ares
ervi
c e
s;

"(5)Management,c
onser
vati
on,andcomme rci
aldevelopme
ntofmari
ne ,f
ores
try
,
mineral
,water
,andothe
rnaturalre
sourc
essubjectt
oc ompl
ianc
ewit
ht helawsand
re
gulati
onsonenvir
onmentalandecol
ogi
calcontr
ols;and

"(6)Prov
isi
onoff
inanc
ial
,te
chnologi
cal
,andothe
rse
rvi
cesandf
aci
li
ti
esr
equi
redby
thebenef
ici
ari
esi
nthei
rdail
yli
vesandli
veli
hood.

"TheGov ernme ntshallpr ov

idethene cessar yf
inanci
alandt e c
hnicalassi
stancetoagr ar
ian
ref
ormc oope rat
ivestoe nablethemt odi s
c hargeeff
ectiv
elyt heirpurposesundert hi
sar t
icl
e.
TheDAR,t heAut horit
yandt heBSPshal ldr awupaj ointprogr am fortheorganizati
onand
fi
nancingoft heagrarianr ef
ormc oope r
ative ssubj
ectofthisChapt er.Thejointprogram shall
begearedtowar dsthebe nefi
ci
arie
sgr adualas sumptionoff ullowne rshi
pandmanage ment
contr
oloft heagrarianre for
mc ooperatives.

"ART.94.  Organiz
ati
onandRegistrati
on.–Agr arianreformc ooperati
ve smaybeorgani
zed
andre gi
ste r
edunde rthi
sCodeonlyuponpr iorwr i
tte
nv er
ific
ationbyt heDARt otheef
fect
thatthes amei sneededanddesi
r e
dbyt hebe ne f
ici
aries
;result
sofas tudythathasbeen
conduc t
edf airl
yindi
catethee
conomi cfeas
ibili
tyofor gani
zingthes ameandt hatitwil
lbe
economi call
yv i
ableinit
soper
ations;andt hatt hesamemaynowbeor gani
zedandregi
ste
red
inaccordanc ewithrequire
mentsoft hisCode .

"TheAuthori
ty,i
nc onsul
tati
onwiththec
oncernedgov
ernme ntagenci
esandcoope
r at
ive
sec
tor
,shalli
ssueappropriat
erul
esandregul
ati
onspert
aini
ngt otheprovi
si
onsofthis
Chapt
er.
"
SEC.12.
 Ar
tic
les96,97and98ofChapterXI
IontheSpeci
alProvi
si
onsonPubli
cServi
cesCoope
rativ
es
ofthesameCodear eher
ebytr
ansf
erre
dt oanot
herchapt
er.Chapte
rXIIasamende
ds hal
lnowr e
ad,
asfol
lows:

CHAPTERXI
I
COOPERATI
VEBANKS

"ART.95.Gov
  erni
ngLaw.–Theprovi
sionsoft
hisChaptershallpri
mari
lygoverncooperat
ive
banksregi
ster
edunderthi
sCodeandtheotherprovi
si
onsoft hisCodes
hallapplytothem
onlyi
nsofarasthe
yarenotinc
onsi
ste
ntwi t
htheprovis
ionscont ai
nedi
nthisChapter.

"ART.96. Super
  vi
sion.–Thec oope rati
vebanksr e
gist
eredunde
rt hisCodeshallbeunde rthe
supervi
sionoft heBSP.TheBSP,uponc onsul
tati
onwi t
htheAuthorityandthec oncerned
cooperat
ives ec
tor,shallf
ormul ateguideli
nesregardi
ngtheoperati
onsandt hegov ernanc
eof
cooperat
ivebanks .Theseguidelinesshallgi
veduer ec
ognit
iont
ot heuniquenat ureand
charact
erofc ooperativ
ebanks .Tot hi
se nd,cooper
ati
vebanksshallprovi
definancialand
bankings er
vicestoitsmembe rs.

"ART.97. Organizati
on,Member s
hipandEs tabli
s hmentofaCooper at i
veBank.–( 1)
Cooperativ
eor ganizati
onsdul ye s
tabli
shedandr egiste
redunde rthisCodemayor ganiz
ea
cooperati
vebank,whi chs hallli
ke wis
ebec ons i
de redac oope rati
vere gist
rableunde r
provi
si
onsoft hi sCodes ubjectt otherequireme nt sandr equisit
eaut hor i
zat
ionfrom theBSP.
Onlyonec oope rat
ivebankmaybee s
tabl
ishedi ne achpr ovi
nc e:Pr
  ovided,Thatanaddi tional
cooperati
vebankmaybee s
tablishedinthes amepr ovincetoc atertot hene edsinthesame
provi
nc etocatertot hene edsoft helocali
tyde pendi ngont hee conomi cconditi
onsoft he
provi
nc easmaybede t
e rmine dbyt heBSP: Provided, f
urther ,Thattheaddi ti
onalc ooperati
ve
bankshallbel ocatedint heCi tyormuni ci
palityot herthatt hec i
tyormuni ci
palit
ywhe r ethe
fi
rstc
oope rati
v ebanki slocated.

"(2)Membe r
shipinacooperati
vebanks hallei
therber egularorass
ociat
e.Regular
me mbers
hipshallbel
imit
edt ocooperat
iveorganizati
onswhi chareholdersofcommon
share
softhebank.Assoc
iat
eme mbersarethos es
ubs c
ribingandholdingprefer
redshar
esof
thebank,whichmayincl
udebutar enotl i
mi t
edtot hefollowing:

"(
a)I
ndi
vidualme
mbe
rsoft
hebank’
sme
mbe
r-pr
imar
ycoope
rat
ive
s;and

"(b)SamahangNay onandMuni ci
palKat ipunanngmgaSamahangNay on( MKSN)
whi chhe ldc ommons haresofc ooperativebankspr i
ort ot heeff
e c
tivi
tyoft hisAc t
shallappl yf orconv ers
iontof ull-
pledge dcoope rati
vesinor dertomai ntainthe i
r
statusasr egul arme mbe rsofc oope r
ativebanks :Pr
  ov i
ded,Thatt heys hallnotifythe
coope rativebankc oncernedthe irintentiont oc onve r
twi thinape riodofni nety( 90)
daysf rom t hee ff
ectivi
tyofthisAc t.SamahangNay onandMKSNar ehe re bygive na
pe r
iodofone( 1)y earfrom thee ffect
ivityoft hisAc ttoc ompl et
ethe i
rc onversionas
coope ratives.Coope rati
vebanks hallexe r
tr easonabl eeffor t
stoinformt he i
rme mbe r
SamahangNay onandMKSNt of i
nallyc onve rtort ogivet henoticeofc onv er
sion
wi t
hint hepr esc
ribedpe ri
od.Upont hef ailureoft heSamahangNay onandMKSNt o
fi
nal l
yc onv erttoaf ull-
pledgedc oope rativ
ewi thinthemax imum pe r
iodofone( 1)
year,thec oope r
ativebankc onc ernedmayc onve rtthec ommons har e
she ldbys uch
associationst opre f
e r
redshar es.

"(3)Theart
icl
esofc
ooperat
iveandbylawsofacooperat
ivebank,oranyamendmenttheret
o,
shal
lberegi
ster
edwitht
heAut hor
ityonlywhenaccompaniedbyac e
rti
fi
cat
eofauthori
ty
i
ssue
dbyt
heBSP,unde
rit
sof
fi
ci
als
eal
.

"ART.98.Admi
  nis
trati
onofCooperativ
eBanks.–Tomai ntai
nthequalit
yofbank
manageme ntandac cordappropr
iateprot
ecti
ontode pos
itor
sandt hepubl
icingeneral
,the
BSPshallpresc
ribedthefi
tandpr operquali
fi
cat
ionsofbankdir
e c
torsandoffi
cersf
orthe
purpos
esoft hisart
icl
e,gi
vingduer e
cognit
iontotheuniquenatureandcharact
erof
cooper
ativebanks.

"Notwiths
tandingt
heprov
isi
onsofthi
sCode,thenumber,c
omputat
ionandte
rm oft
he
boardofdire
ctorss
hal
lbedefi
nedinthear
tic
lesofcoope
rat
ionandbyl
awsofthe
cooper
ativ
ebank.

"ART.99. Quorum andVot i
ngRights.–Thequor um require
me ntforgene r
alass
embl y
me et
ings,whe t
herspeci
alorregular,s
hallbeonehalfplusoneoft henumbe rofvoti
ng
sharesofallt
heme mbe rsingoods t
anding.I
nt hemee ti
ngsoftheboar dofdirect
ors,
whe t
hers pec
ialorregul
ar,thequorum requir
e mentshallbeone-halfplusoneofallthe
me mbersoftheboar dofdirec
tors
.Eachdi r
ectorshal
lonlyhaveonev ot
e .

"Notwit
hstandingt heprov
isi
onsoft hisCodetothecont
rar
y ,t
hequor um requir
eme ntf
or
amendme ntsofarticl
esofcooperati
onandby l
awsshal
lbethree-
fourths(3/4)voteofal
lthe
membe r
swi thvotingright
s,pres
e ntandc ons
tit
uti
ngaquorum.Al lot
he rvoti
ng
re
quire
me ntsshallbeaspr e
scri
be dbyt heBSP.

"Thevot
ingr
ight
soft
heme
mbe
rss
hal
lbepr
opor
tionat
etot
henumbe
roft
hei
rpai
d-up
shar
es.

"ART.100. Power
  s,Functi
onsandAl l
iedUndertaki
ngsofCooper at
iveBanks .–Ac ooperat
ive
banks hal
lprimaril
ypr ov
idefi
nancial
,bankingandc re
ditservi
cestoc ooperati
ve
organizat
ionsandt hei
rme mbers.Howe v
er,theBSPmaypr e
scri
beappr opr
iateguidel
ines
,
cei
lingsandc ondi
tionsonborrowingofac ooperat
iveorgani
zati
onf rom ac ooperati
vebank.

"Thepowersandf
uncti
onsofacoope
rati
vebanks
hal
lbes
ubj
ectt
osuc
hrul
esand
regul
ati
onsasmaybepromulgat
edbytheBSP.

"I
nadditiontothepowersgrant
edbyt
hisCodeandothe
rexi
sti
nglaws
,anycoope
rati
vebank
mayperform anyoral
lofthebanki
ngser
vic
esoff
ere
dbyothertype
sofbankss
ubjec
ttothe
pr
iorapprovaloft
heBSP.

"ART.101.
 Capi
talRequir
ement
sofCooper
ati
veBanks
.–( 1)Acoope
rati
vebanks
hal
lhav
ea
minimum paid-
upc api
tali
nsuc
hamountasmayber equi
redbytheBSP.

"TheBSPmaypr esc
riberulesandregul
ationsonthetypesofshare
sac ooper
ati
vebankmay
is
sue,inc
ludingthetermst her
eofandrightsappurt
enanttheret
otodet e
rminecompli
ance
withlawsandr egul
ationsgoverni
ngcapitalandequit
yst
r uc
tureofbanks:Pr
ovi
ded,That
cooperat
ivebanksshallis
sueparvaluesharesonly.

"(2)TheBarri
oSav ingsFund( BSF)andBar r
ioGuaranteeFund( BGF)colle
cted/ deduct
edby
vari
ousbanksthroughoutt hec ount
ryfrom thel
oanpr oceedsoffarmer-borrowe rswhowe re
me mbersofcooperative
sandSamahangNay oni
nc ompliancewi thPre
sidentialDe c
reeNo.
175andac c
ompany ingl et
ter
sofi ns
tructi
on,whic
har estil
lfl
oatingandout standingeit
heras
acti
veordormantde posi
taccountsinthebooksofthosebanks ,shal
lbede positedtothe
coope rati
vebankl ocat
edintheprovi
ncewheret
hede posi
tor
ybanksofBSFandBGFar e
l
oc ated,orifthereisnocooperat
ivebanki
ntheprovi
nce.TheBSP,i
ncoordinat
ionwi
ththe
Aut horit
y,shallc
omeupwi t
hthei mpleme
nti
ngguideli
nesonhowtocredittheowne
rsof
thef unds.

"Thos
efundswhos
eowne
rsc
oul
dnotbel
ocat
edori
dent
if
ieds
hal
lbes
ubj
ectt
oes
che
at.

"ART.102.Pr
  i
vil
egesandIncenti
vesofCooperativeBanks.–Thec oope
rat
ivebanksregis
tered
underthi
sCodes hallbegi
venthesamepr iv
ilegesandincenti
vesgrant
edtotheruralbanks,
pri
vatedevel
opme ntbank,comme rci
albanks,andallotherbankstoredi
scountnoteswith
theBSP,theLandBankoft hePhil
ippine
s,andot hergovernmentbankswithoutaff
ecti
ngin
anywayt heprovi
sionsofthi
sCode.

"(1)Subj ecttot heappr ovaloft heBSP,ac ooperati

vebanks hallpublis
has t
ateme ntofits
fi
nanc ialstateme ntofi tsf i
nancialc ondit
ion,incl
udingt hoseofi tssubsi
diariesandaf fi
li
ates
ins uchte r
msunde rstandabl etot helaymanandi ns uchfrequenc yasmaybepr esc
ribedby
theBSP,i nEngl ishorF il
ipino,atl eastoncee v
e r
yquar terinane wspaperofl ocalci
rculat
ion
int hecityorpr ovinc ewhe rethepr inci
palofficeisl
oc atedor,ifnone ws paperispubl i
shedin
thes amepr ovi
nc es,the ninane ws paperpublishedint hene arestci
tyorpr ov i
nceori na
ne wspape rofge ner alcirculati
on.TheBSP,howe ver,mayal lowt hepos t
ingoft hefinancial
stateme ntsofthec oope rativebanki nconspic
uouspl acesitmayde termineinl ieuofthe
publ i
cationr e
qui redi nthepr ec
e dingsentencewhe nwar rantedbyt hecircums tances.

"Howe ve r,inc asesoff ore closureofmor tgagescover ingl oansgr antedbyac ooperati
v ebank,
andt hee xe cuti
onofj udgme ntsthereoninv olvi
ngr ealpr ope rtiesandl ev i
eduponbyas he ri
ff,
itshallbee x emptf rom publ icati
onr equireme ntwhe ret het otalamountoft heloan,
excludingi nterestandot he rc hargesdueandunpai d,doe snote xceedTwohundr edfifty
thous and( P250, 000.00)ors uchamountast heBSPmaypr es c
r ibe,asmaybewar rantedby
thepr ev ail
inge conomi cc ondi ti
onsandbyt henatureandc har ac terofthec ooperativ
ebanks .
Itshallbes uf f
icientpubl i
c ationi nsuchc asesifthenot i
c eoff or ecl
osureande xecuti
onof
judgme ntar epos tedinc ons picuousar easint hecoope rativebank’ spremi s
es,themuni cipal
hall,themuni cipalpubl i
cmar ket,thebar angayhal l
,ort hebar angaypubl i
cmar ket,ifthe re
beanywhe ret hepr ope r
tymor tgagediss it
uated,wit hinape r
iodofs ix
t y(60)day s
imme diate lypre cedingthepubl i
cauc ti
onort heexec utionofj udgme nt.Proofofpubl ication
asre quir e
dhe reins hallbeac c
ompl is
hedbyanaf f
idav itoft hes he rif
forof fi
cerconduc ting
thef orec l
os ures aleore xec ut i
onofj udgme nt,ands hal lbeat t
ac hedt other ecordoft hec ase.

"(2)Acooper
ati
vebankshal
lbeal
lowedt
oforecl
osur
elandsmort
gagedtoi
tss
ubj
ecttothe
provi
si
onsofRepubl
icAc
tNo.6657,ot
her
wiseknownasComprehensi
veAgr
ari
anRefor
m
Lawof1988.

"ART.103. As
  si
stancetoCooper ati
veBanks .–I naccordanc ewi the x
istingpolicies,
governme ntagencies,governme nt
-owne dorc ont
roll
edc or porationsandf i
nanc ial
ins
tit
utionsshallprov i
deas s
ist
ance,te c
hni calorothe r
wi s
e ,toc oope rativebankst opermit
themt ogrow,de velopandpe r
formt heirr oleincountr y
sidede velopme nttowar dsa
sust
ainablenationale conomicde v
elopme nt.Whe ne verac oope rativebankor ganizedunder
thi
sCodei sinas tat
eofc onti
nuinginabi l
ityorunwi l
li
ngne s stomai nt ainape riodofli
quidi
ty,
theBSPmayde signateoneofi tsoffi
cialsorape rs
onofr ecogni z
e dc ompe tence,prefer
ably
withe x
per i
enceincoope r
ati
vebanki ngandf inance,ascons e r
vatoroft hesaidbankpur suant
totheappr opri
atepr ovisi
onsofe xi
stingbanki nglaws .

"ART.104.
 Appl
ic
abi
li
tyofBanki
ngLawsandRegul
ati
ons
.–Wi
thr
espe
ctt
othepr
ovi
si
ons
 andgovernanc
eofthecooper
ati
vebanks,t
hepr ov
isi
onsoft
hebankingl
aws,r
ulesand
regul
ati
onsshal
lprev
ail
,not
withst
andi
ngSe c
tion71ofRepubl
icAc
tNo.8791,ot
he r
wise
knownast heGene
ralBanki
ngActof2000.

"TheBSPandtheAuthori
ty,i
nconsul
tat
ionwi
ththeconce
rnedcooperat
ivese
ctor
,
shal
lis
sueappr
opri
aterul
esandregul
ati
onspe
rtai
ningtothepr
ovisi
onsofthis
Chapte
r."

SEC.13. 
Art
icl
es99,100,101,102,103,104,105,106,107,108and109ofChapte
rXII
IonSpec
ial
Provi
si
onsRe l
ati
ngtoCoope r
ativ
eBanksoft hesameCodear ehere
bytrans
fer
redtoanot
herc
hapter
.
ChapterXII
Iasamendeds hal
lnowr ead,asfol
lows

CHAPTERXI
II
I
NSURANCECOOPERATI
VE

"ART.105.Cooper
  ati
veI ns
uranceSociet
ies
.–Exis
tingc
ooperat
ive
smayorganizet
hemsel
ves
int
oac ooperat
iveins
ur anceent
ityforthepur
poseofengagi
nginthebus
inessofi
nsur
ingli
fe
andpropertyofcooperativ
esandt hei
rme mbers
.

"ART.106. Ty
  pesofInsuranceProvided.–Undert hec ooperat
ivei
nsurancepr ogram
est
ablishedandf ormedbyt hev i
rtueofthepr ov
isi
onsoft hisCode,t
hec ooperativeinsur
ance
soci
etiesshallpr
ovideitsconsti
tuti
ngme mbersdif
f er
enttypesofins
urancec overage
consi
stingof,butnotlimitedto,li
feinsurancewiths peci
algroupcoverage,l
oanpr ot
ecti
on,
ret
ireme ntplans,e
ndowme nt,mot orvehic
lecoverage,bonding,c
ropandl iv
e st
oc kprote
cti
on
ande quipme nti
nsurance.

"ART.107. Appli
cabili
tyofI nsuranceLaws .–Thepr ovis
ionsoftheInsuranceCodeandal l
otherlawsandr egulationsrelati
vetot heor ganiz
ati
onandope rati
onofani nsurance
companys hallapplytoc oope r
ativeinsur
anc ee nt
iti
esorgani
zedunderthisCode .The
requir
e mentsonc apit
al i
zati
on,investment sandr es
ervesofi
nsurancefi
r msmaybel i
beral
ly
modifieduponc onsultationwi t
ht heAuthor ityandthecooperat
ivesect
or ,butinnoc asemay
berequireme nttober educe dtolessthanhal fofthoseprovi
dedforunde rt heInsurance
Codeandot he rrel
atedl aws.

"ART.108. I
 mpl
ement
ingRules
.–TheI ns
uranceCommi ss
ionandtheAuthori
ty,i
n
consult
ationwit
htheconc
ernedcooperat
ivesec
tor,s
halli
ssuetheappr
opriat
erulesand
regulat
ionsimpl
ementi
ngtheprovi
sionsofthi
sChapter
."

SEC.14. 
Arti
cl
e s110,111,112,113and114ofChapt
erXI
VonSpecialPr
ovisi
onsr
elat
ingtoCredi
t
Cooperati
veoft hi
sCodear eherebyt
rans
fer
redt
oanothe
rchapt
er.Chapte
rXIVasame ndeds
hall
nowr ead,asfoll
ows:

CHAPTERXI
V
PUBL
ICSERVI
CECOOPERATI
VES

"ART.109. Def
ini
tionandCov erage.–Apublicser
v i
cecooper
ati
v e
,withi
nthemeaningof
thi
sCode ,i
soneor ganiz
edt orenderpubl
icserv
icesasauthor
izedunderafr
anchi
seor
cer
tif
icateofpubli
cc onveni
enceandne ce
ssi
tydulyissuedbytheappropr
iat
egover
nme nt
agency.Suchserv
icesmayi ncl
udet hef
oll
owing:

"(
1)Powe
rge
ner
ati
on,t
rans
mis
sion,and/
ordi
str
ibut
ion;
 "(
2)I
cepl
ant
sandc
olds
tor
ages
erv
ice
s;

"(
3)Communi
cat
ions
erv
ice
sinc
ludi
ngt
ele
phone
,te
legr
aph,andc
ommuni
cat
ions
:

"(4)Landandseatranspor
tati
onc ooper
ati
vesf
orpas
senge
rand/
orcargo.Trans
por
t
cooperat
ive
sorgani
zedunde rtheprovi
si
onsofExe
cut
iveOrde
rNo.898,Seri
esof
1983,shal
lbegover
ne dbythisChapter
.

"(
5)Publ
icmar
ket
s,s
laught
erhous
esandot
hers
imi
lars
erv
ice
s;and

"(6)Suchot
hertypesofpubli
cser
vic
esasmaybeengagedi
nbyanyc ooperati
ve.
Suchcooper
ati
veshallbepri
maril
ygover
nedbyt
hisChapte
randthege ner
al
provi
si
onsofthi
sCodei ns
ofarast
heymaybeappl
icabl
eunles
stheyareinconsi
ste
nt
herewit
h.

"ART.110.Regi
  s
trat
ionRequi
rements
.–Unle
s sot
herwisepr
ovide
dinthi
sCode
,nopubl
ic
ser
vic
ec ooper
ativ
eshallbere
gis
ter
edunl
essitsat
isf
iest
hefol
lowingr
equi
rement
s.

"(1)It
sar
tic
lesofcooper
ati
onandbyl
awsprovi
defortheme
mbe
rshi
poft
heus
ers
and/orpr
oducersoftheser
vic
eofs
uchcooper
ati
ves;and

"(2)Suc hotherr e
quireme nt
sasmaybei mposedbytheotherperti
nentgove
rnment
agenciesconcerned.Inc as
etherearet
wo( 2)ormoreappli
cantsforthesamepubl
ic
serv
icefranchis
eorc e
r t
ifi
cat
eofpubli
cconveni
enceandne c
essi
ty,al
lthi
ngsbei
ng
equal,prefer
enc eshallbegiventoapubl
icser
vic
ecooperat
ive.

"ART.111. Regul
  ati
onofPubl i
cSer viceCooperati
ves.–( 1)Theinternalaff
air
sofpubl ic
servi
cecoope r
ati
vessuchasther i
ght sandpr i
vil
egesofme mbers,t
her ule
sandpr ocedures
forme et
ingsofthegeneralass
e mbl y
,boar dofdirec
torsandc ommi ttees
;fortheelec
tionand
quali
fic
ationsofoff
icers
,dir
ectors,andc ommi tt
eeme mbe r
s;all
ocati
onanddi st
ribut
ionof
surpl
uses;andallothermatter
sr elat
ingt othei
rinternalaffai
rsshal
lbegov ernedbyt hi
s
Code.

"(2)Allmatter
sr el
atingtot hefranchi
seorcert
if
icateofpubli
cconvenienc
eandneces
sit
yof
publicse
rvicecooperati
vess uc
hasc apit
ali
zat
ionandi nve
stmentrequirement
s,e
qui
pme nt
andfacil
iti
es,f
requenc i
es,rate-
fixi
ngands uchothermatter
saffec
tingthei
rpubl
ics
ervi
ce
operati
onsshallbegov erne
dbyt hepropergover
nme ntagencyconcerned.

"(
3)TheAuthor
ityandthepr ope
rgove
rnmentagenc
yconcer
neds
hal
ljoi
ntl
yis
suet
he
nec
ess
aryr
ulesandregulat
ionstoimpl
ementthi
sChapt
er.

"(4)TheAut horit
yshalle s
tabli
shac ommi tteef
orthemoni t oringoft ransport
ati
ons e
rvi
ce
coope rati
vescompos edofr epresent
ative
sf r
om theAuthor i
ty ,theLandTr ansportat
ion
Franchi s
ingandRe gulatoryBoard( LTFRB),theLandTranspor t
ationOf fi
ce(LTO),Offi
ceof
Transpor tCooperati
ves( OTC),otherconcernedgovernme ntage nci
es,asmaybene ces
sary,
andt heNat ionalFederati
onofTr ansportati
onCoope r
ativ
e s.Al ocalmoni tori
ngcommi tt
ee
shallli
ke wis
ebee s
tabli
she dattheex t
ensionoff
icesoftheAut horit
yt ofacil
it
atethe
moni toringoftransportati
onc ooperati
ves.

"ART.112.Engagementi
  nAll
iedBusines
sbyTrans
port
ati
onServ
iceCooperati
ves.–Subjec
t
topert
inentnati
onall
awsandlocalordi
nanc
es,pr
imaryt
rans
portat
ionser
v i
cecooperat
ives
 i
ncl
udingsecondar
yandtert
iar
yf ede
rat
ionofc
oope
rat
ive
smaye
ngagei
nabus
ine
ssr
elat
ed
t
otranspor
tati
onserv
ice
,inc
ludingbutnotl
imi
tedt
o:

"(
1)Import
ati
on,di
str
ibut
ionand,mar
ket
ingofpe
trol
eum pr
oduc
tsi
nac
cor
danc
e
wit
hexi
sti
nglaws;

"(
2)Ope
rat
ionofgas
oli
nes
tat
ionsandt
rans
por
tat
ions
erv
icec
ent
ers
;

"(
3)I
mpor
tat
ion,di
str
ibut
ionandmar
ket
ingofs
par
epar
tsands
uppl
ies
;and

"(
4)Mar
ket
ingofv
ehi
cl
e/dr
ive
rsi
nsur
anc
epol
ic
ies
.

"ART.113. RenewalofFr
  anchiseandVehicl
eRegist
ration.–Renewalsoffranchi
seand
vehicl
er egi
strati
ons hallbegr ante
dtotranspor
tati
ons ervi
cecooper
ati
ves:
 Provi
ded,That
suchc ooperativ
epr e
s entsace rt
if
icat
eofgoodstandingissuedbytheAuthorit
y,OTC,andthe
localgovernme ntunitc oncernedasproofthati
thasc onti
nuouslyprov
idedtherequire
d
publictransportat
ions ervi
ces.

"TheAuthori
ty,i
nc onsul
tati
onwiththec
oncernedgov
ernme ntagenci
esandcoope
r at
ive
sec
tor
,shalli
ssueappropriat
erul
esandregul
ati
onspert
aini
ngt otheprovi
si
onsofthis
Chapt
er.
"

SEC.15. 
Arti
cl
e s115,116,117and118ofChapte
rXVonSpe ci
alPr
ovi
sionsre
lati
ngtoCoope
rat
ive
Ins
ur anc
eSocieti
esoft hesameCodear
eherebytrans
fer
redt
oanothe
rc hapt
er.Chapt
erXVas
ame ndedshallnowr ead,asfol
lows
:

CHAPTERXV
CREDITCOOPERATI
VES

"ART.114.Cov
  erage.–ThisChaptershallappl
yt ocredi
tcooperati
vesandothe
rcooper
ati
ves
,
inc
ludi
ngmul ti
pur posecooperat
ive
s,thatprovidesavi
ngsandc re
dittothe
irmembersonl
y.
Therestoftheprov i
si
onsoft hi
sCodes hal
lapplytothemi ns
ofarasthesamearenot
inc
onsist
entwiththepr ovi
sionsofthi
sChapt e
r.

"ART.115.
 Def
ini
ti
onandObjec
tiv
es.–Ac r
editc
ooper
ati
vei
saf
inanc
ialor
gani
zat
ionowne
d
andoperat
edbyitsmember
swiththefol
lowingobj
ect
ive
s:

"(
1)Toe
ncour
ages
avi
ngsamongi
tsme
mbe
rs;

"(2)Tocr
eat
eapoolofs
uchsav
ingsf
orwhichl
oansf
orpr
oduc
tiv
eorpr
ovi
dent
purpos
emaybegrant
edtoi
tsme mbe
rs;and

"(3)Toprovi
der
elat
eds
erv
ice
stoe
nabl
eit
sme
mbe
rst
omax
imi
zet
hebe
nef
itf
rom
suchloans
.

"ART.116.
 Or
ganizat
ionandRegi
str
ati
on.-Cre
ditcoope
r ati
vess
hallbeor
gani
zedand
regi
ste
redi
nac c
ordancewit
hthegeneralpr
ovisi
onsofthisCode.

"ART.117.Or
  gani
zat
ionalLi
nkage.–Cre di
tcooperat
ive
smayor gani
zechapt
ersor
subsi
diari
es,orjoi
nleaguesandfederat
ionsforthepurposeofprovi
dingc
ommonlyne
ede
d
esse
ntials
ervicesi
ncl
udingbutnotlimitedtothefoll
owing:
 "(1)Inte
r lendi
ngofsurpl
usfund;"(
2)Mut ualbenefi
ts;
"(3)Deposi
tguarante
e;"(4)
Bonding;"(5)Educati
onandtrai
ning;"(
6)Profes
sionalandtechni
calas
sist
ance;"(
7)Resear
ch
andde velopme nt
;"(
8)Repre
sentati
on;and"(9)Ot herserv
ice
sneededtoimpr ovethe
ir
perf
or manc e.

"Ex
ist
ings
upportorgani
zati
onssuchasf
ederat
ionsofcre
ditc
ooperat
ive
s,cr
editcooper
ati
ves
att
heprovi
nci
al,r
egionalandnati
onall
eve
lsmayc ont
inueassuc
hunde rt
hisCode."

SEC.16.
 Ane
wAr
tic
lei
sins
ert
edi
nChapt
erXVonCr
edi
tCoope
rat
ive
sands
hal
lnowr
ead,asf
oll
ows
:

"ART.118.Conv
  ersi
onofCreditCooperat
ivestoFinancialServic
eCooper ativ
es.–Exis
ting
credi
tandmul ti
purposec
oope r
ative
swi t
hs avi
ngsandc reditfacil
it
iesshallf
ormall
yinform
theAuthorit
yofitsi
ntent
iontoc ont
inuepe rf
ormingitspre s
entf unct
ions.Shouldthesaid
cooperat
ivesdec
idetoexerc
iseenhancedfunctions,i
tshallnotifytheAuthor i
tyandsatis
fy
therequir
eme nt
sforconvers
iont of
inanci
alservic
ecoope rati
ve."

SEC.17. 
Ane wChapt
eronF
inanc
ialSe
rvi
ceCoope
rat
ive
sshal
lbei
nse
rte
dint
hisChapt
erands
hal
l
read,asfol
lows
:

CHAPTERXVI
F
INANCI
ALSERVI
CECOOPERATI
VES

"ART.119.Def
  i
niti
onandFunc t
ionsofFi
nanci
alSer
vic
esCooperat
ives
.–Afi
nanc
ialse
rvic
e
cooperat
ivei
safinanc
ialorgani
zati
onownedandope r
atedbyit
sme mber
sandauthori
zedto
provi
dethefoll
owingservi
ce,ex
clusi
vel
ytoit
sme mbers:

"(a)Thef unct
ionsofcr
edi
tcooper
ati
vesandothercooper
ati
ves,i
ncl
udingmult
ipur
pose
cooperat
iv e
s,t
hatprovi
desavi
ngsandcredi
ttothei
rme mbers
,and"(b)Othe
rfi
nancial
serv
icessubjec
ttoregul
ati
onbytheBSP.

"Thear t
icl
esofcooperat
ionandbylawsofanyfi
nanc
ialserv
icecooper
ati
ve,orany
amendme ntt
hereto,s
hallbere
gis
teredwit
htheAuthorit
yonlyifacc
ompaniedbya
cer
tif
icateofaut
hor i
tyis
suedbytheBSP,underi
tsof
fic
ialseal
.

"Theaut hori
tygrante
dt hisprov
isi
onmayber evokedbytheBSPifanyoft
hegroundsfor
recei
vershipme nt
ionedunde rSect
ion53and56ofRe publ
icActNo.8791i
spres
entorifthe
fi
nancialserv
icecooperati
vehaswi l
lf
ull
yvi
olat
edt hi
sCodeofanyofthere
lat
edrulesand
regul
ations.

"TheBSPshal
lis
sueaceas
eanddesi
stor
dertocoope
rati
vesexe
rci
si
ngt
hef
unc
tionofa
fi
nanci
als
ervi
cecoope
rati
vewi
thoutaut
hori
tyf
rom theBSP.

"TheBSPmaychar
geequi
tablerat
esorfee
s,asmaybepre
scri
bedbytheMone
tar
yBoar
dfor
li
cens
ing,e
xami
nati
onandotherserv
ice
swhichitr
ende
rsunderthi
sCode
.

"Upont hefavor
abl ecer
tif
icat
ionoft
heBSPandt hepriorapprovaloftheAuthor
ity
,a
cooperati
ve,t
hemai npurposeofwhic
histoperformsavingsandc r
editf
uncti
ons,may
conver
tt ofi
nancialser
vicecooper
ati
vesubj
ecttotherequiredquali
fi
cati
onsandproce
dur
es
provi
de dunderthisCodeandi nthei
mpleme nt
ingrul
esandr e
gulat
ions.

"ART.120.
 Member
shi
pandAf
fi
li
ati
on.–Af
inanc
ials
erv
icec
oope
rat
ives
hal
lhav
ethet
wo(
2)
t
ype
sofme
mbe
rs:

"(
1)Re
gul
arme
mbe
rs,whoar
enat
uralpe
rsons
;and

"(2)Associ
ateme mbe r
s,whoarenaturalpersonsbutwhodonoti mme di
atel
yqual i
fyunder
therequire
me ntsforme mber
shipsetoutintheby l
awsoft
hec ooperati
v e
.Allassoci
ate
me mberswhoar enaturalper
sonsshallbegi
ve nt wo(2)ye
arstobe c
omer egularme mbers
.
Fail
uretoconv er
twithinthes
aidperiodshal
lme anautomati
cwi t
hdr awalofthe i
rassoc
iat
e
me mbership.Theymay,however,r
e-applyasr e
gul armembersaft
ert wo( 2)years.

"Minorswhoar edepende ntsofregularme mbe rscanqual i

fyasas s
ociateme mbe r
s.When
the
yreacht heageofmaj orit
yandwi thi
nt wo( 2)yearsfrom acceptancesoftheirass
oci
ate
membe rs
hip,t heyhavet heopt i
ontoc onvertintoregularme mbe rs
.Asas s
ociateme mbers
,
the
ymayope naccounts,depositfundsandwi thdrawf rom theiraccount,subje
c tt
othe
byl
awsandr ulesofthec ooperati
ve,andt herulesandr egul
ationsoft heAuthority
,
notwit
hstandingt heprov i
si
onsofe xisti
nglawst othec ontr
ary.

"ART.121.
 Regul
ati
onandSuperv
isi
on.–TheAuthor
itys
hal
lexe
rcis
eleadregul
ator
ypowe
rs
andsuperv
isi
onov e
rtheope
rati
onsofthef
inanc
ials
ervi
cec
ooperat
ive
s,towit:

"(1)I
ssuerul
esandre
gulati
onsf
ort
hes
afeands
oundc
onduc
tofope
rat
ionsof
fi
nanci
alse
r v
icec
ooper
ativ
es;

"(2)Es
tabl
is
hst
andar
dsofope
rat
ionf
oruni
for
m appl
ic
ati
ont
oal
lfi
nanc
ials
erv
ice
cooper
ati
ves
;

"(3)Pres
cri
berati
os,ceil
ings
,li
mitat
ions,orothe
rfor
msofregul
ationonthe
dif
fere
nttypesofaccountsandpract
icesoffi
nanci
als
erv
icec
ooperati
veswhi
chs
hal
l,
confor
mt ointe
rnati
onallyacce
ptedstandar
ds;

"(4)I
nves
tigat
et odet
erminewhet
heraf
inanc
ials
erv
icec
oope
rat
ivei
sconduc
tingi
ts
busi
nessi
nas afeandsoundmanner;

"(5)Conductr
egularexaminat
ionofthebooksofac
count
s,r
ecor
dsandot
her
documentsoffi
nancialse
rvi
cecooper
ati
ves;

"(
6)I
nqui
rei
ntot
hes
olv
enc
yandl
iqui
dit
yofaf
inanc
ials
erv
icec
oope
rat
ive
s;

"(7)Pres
cribeappr
opri
atefee
sfors
upervi
si
onandexami
nati
onoffi
nanc
ialser
v i
ce
cooper
ative
st oamongothe
rs,moni
torandove
rse
ethate
xis
tingl
awsandregulati
ons
arecompliedwith;

"(
8)Pas
suponandr e
viewthequal
if
icat
ionsanddi
squal
if
icat
ionsofi
ndi
vidual
s
el
ect
edorappoi
nte
ddi r
ect
orsorof
fi
cersanddis
qual
ifyt
hosefoundunfi
t;

"(
9)Di
squal
if
y,sus
pendorr
emoveanydi
rec
tororof
fi
cerwhoc
ommi
tsoromi
tsan
ac
twhi
chrenderhi
m unf
itf
ort
heposi
ti
on;

"(10)Sel
ect
,desi
gnateanddeput
izef
eder
ations
,throughanapprov
edacc
redi
tat
ion
cri
ter
ia,t
hatwil
lsupervi
sepr
imaryfi
nanc
ialser
vic
ec oope
rat
ive
sandis
suebasi
c
guidel
ine
sther
efor;
 "(
11)Re
qui
ret
hes
ubmi
ssi
onofr
ele
vantr
epor
tsf
rom t
hede
put
ize
dsupe
rvi
sor
;

"(12)Provi
der e
me di
alme as
uresintheoperat
ionsoffi
nanci
als
e r
v i
cecooperat
ives
thatareinastateofcontinuingi
nabili
tyorunwill
ingne
sstomaintainaperiodof
li
quidi
tyatthere questofthedeputi
zedsuperv
isororwhenthedeput i
zedsuperv
isor
fai
lstoperf
ormi tsfuncti
ons;

"(13)Accr
edi
text
ernalaudi
tor
sinaccor
dancewi
ths
tandar
dsf
oraudi
tandf
inanc
ial
re
por t
inginc
ooperat
ionwit
hthePICPA;and

"(14)Appointaconser
vatororar e
ceiv
erasmaybene ce
s s
arysubj
ecttotherulesand
regul
ationstobepromulgate
dbyt heAuthori
tyincoordinati
onwiththeBSP,taking
intoconside
rat
ionthegrounds,powersandprocedure
sunde rSect
ions29and30of
RepublicActNo.7653asmaybede emedappropri
atetofinanci
als
e r
vic
ec oope
rative
s.

"TheAut horit
ys hallinc
ludeini t
srulesandr egulati
ons,appropr
iatesanc t
ionsandpe nalt
ies
,
ont hefinanci
alse rvi
cecooperati
ves,it
sme mbe r
s,offi
cersandresponsiblepers
ons ,f
orany
acti
ont hatfai
lstoadhe retosoundandpr udentmanage me ntpr
ac t
icesorareinc ons
ist
ent
withthepr ovi
sionsoft hisCode,otherappl i
cablelawsonc ooper
at i
ves,rules
,regulat
ions,
cir
cularsororde rsiss
uedbyt heAut horit
y,andr equirethecooperati
vetounde rtake
correct
iveorreme di
alme asuresrel
ativethereto.

"TheBSPisauthor
ize
dtoconduc
tris
k-bas
eds
upe
rvi
si
onande
xami
nat
ionoff
inanc
ials
erv
ice
coope
rat
ivesasitmaydee
m neces
sary
.

"ART.122. Promulgat
ionofRulesandRegul
ati
ons
.–TheBSP,i
nc oordinat
ionwit
hthe
Authori
ty,shallpr
escr
ibetheappropr
iat
eprudent
ialr
ule
sandregulat
ionsappl
ic
ablet
othe
fi
nanci
als e
r v
icecooperat
ive
s.

"Subjecttother e
gul ati
onsoft heBSP,t hebanki nglaws ,rule
sandr egulationss hallhave
suppletor
yappl i
cationtof inancials
e rvice
sc ooperative
s: Provi
ded,howev
  er ,Thatthe
provis
ionsonac cesst obor r
owingorf i
nanc ialassi
stancet obee x
tendedbyt heBSPoft he
Phil
ippineDe posi
tI nsuranceCor poration( PIDC)shallnotappl ytofinancials e
rv i
ce
cooperati
ves:
 Provided,f
 ur t
her,Thatt hede positli
abili
tiesofthefinancialse rv
ice
cooperati
vesshallnotbei nsuredbyt hePDI C.

"ART.123. Fi
  nancialServ
iceCooper ati
veFederat
ions.–Financials
ervic
ecooperati
vesmay
organizethems el
v esi
ntofinanc i
alservi
cecooper
ativ
emayor ganiz
ethe msel
vesint
ofinancial
servi
cec ooperati
vef e
derati
ons ,andr e
gist
erthei
rfederati
onwi ththeAuthorit
y.These
fi
nancialservicecooperati
vef ederat
ionsmaybede putize
dbyt heAut hori
tyasthesupervi
sor
oftheirme mbe rs,andtheys hallhavethefoll
owingfuncti
ons:

"(
a)De
vel
ops
tandardsandpr
ovi
deser
vic
esforthebene
fitofi
tsaff
il
iat
esandt
hei
r
membe
rsi
nac
cordancewitht
herul
esandre
gulati
onsoftheAuthori
ty;

"(b)Defi
nec
ommonobjec
tiv
esandc
oor
dinat
eac
tiv
iti
esf
ort
hef
inanc
ials
erv
ice
cooper
ati
vef
ede
rat
ion;

"(c
)Establi
shandadmi
nis
terfundssuc
hasl
iqui
dit
yfund,l
oanf
und,i
nve
stme
ntf
und,
st
abil
iz
ationfundands
uchotherfunds
;
 "(
d)Es
tabli
shasavi
ngsguar
anteesys
temf ortheprot
ect
ionofthei
raff
il
iat
es'
member-
depos
itor
swithi
nthre
e( 3)year
sf r
om theappr
ovalofthi
sCode;

"(
e)Ex
erc
iseon-
sit
eandof
f-s
ites
upe
rvi
sor
ypowe
rov
eri
tsme
mbe
rs;

"(
f)Prov
ider
eme
dialas
sis
tanc
etoi
tsme
mbe
rsc
onc
erni
ngt
hei
rope
rat
ionsand
management
;

"(g)Ac
tastheli
qui
datorandwhenappl
icabl
e,seque
sterpr
opert
iestosati
sfyan
obli
gat
ions
e c
uredbyamor t
gagewhenauthori
zedbytheAuthor
ity;and

"(
h)Trans
mitre
lev
antandrequir
edinf
ormati
onregardi
ngt
heope
rat
ionsand
pe
rfor
manceofmember-c
ooperati
vest
otheAuthor
ity
.

"TheAut hori
tyandothergov ernme ntage nci
es,governme nt-ownedorc ontroll
ed
corporati
onsandgovernme ntfinancialinstit
uti
onss hallprovidetec
hnicalands uchother
assi
stancethatmaybeallowe dbyt he i
rc hart
erstofinancialservi
cecooperati
vef e
derati
ons
forthee s
tabli
shmentand/ ors t
rengt heningoft hei
rre s
pe c
tivecooperati
vesavingsguarant
ee
syst
em.Thet echni
calass
istanc etobepr ovidedshallincl
ude ,amongot hers
,traini
ng
supervis
ionande x
amination.

"ART.124. Des
  ignati
onofEx isti
ngUni tatt
heCooper at
iveDevelopmentAut hori
tytoPerfor
m
RegulatoryandSuper vi
soryFunc ti
ons.–Wi thi
nsix(6)mont hsfrom theapprovalofthi
s
Code,theAut horit
yshallde s
ignatetheunittoformulateandimpl ementthene c
essar
y
regul
ations,rul
e s
,polic
ies,guidel
inesandstandardsappli
cablesolel
ytofinanci
alserv
ice
cooperativ
esandde putizedfederati
onsi nt
hepe r
formanc eoftheirsavi
ngs,cr
editandsuch
otherrelatedenhancedf i
nanc i
alservi
ceoperat
ions.

"TheDe part
mentofFinance,theBSPandothe rconcer
nedgovernmentagenc
iesshal
lpr
ovi
de
technic
alandtr
aini
ngs upportfortheef
fec
tiveande f
fic
ienti
mpleme nt
ati
onofthe
regulat
oryandsuper
visoryfuncti
onsandresponsibi
li
ti
esoftheAuthori
ty.

"ART.125. Prohibit
ion.–Thet ermsc r
editcoope r
ativ
e,financi
alserv
icecooperati
veand
fi
nanc i
alservi
cec ooperati
vefederati
ons hal
lbeus edexclusi
vel
ybyt hosewhoar edul y
regis
teredunde rthisCode,andnope rs
on,groupofpe r
sons,ororganizat
ionsshal
lus ethe
saidtermsunl e
ssdul yregi
ste
re dwiththeAut horit
y.Violati
onsofthisprohibi
ti
ons hallbe
punishableinaccordanc ewit
hAr tic
le140oft hisCode."

SEC.18.
 Ane
wChapt
eronEl
ect
ricCoope
rat
ive
sshal
lbei
nse
rte
dands
hal
lre
ad,asf
oll
ows
:

CHAPTERXVI
I
EL
ECTRI
CCOOPERATI
VE

"ART.126.
 Cover
age.–Theprovi
sionsoft
hisCodeshal
lapplytoalle
lec
tri
ccoope
rati
ves
regi
ster
edwiththeAuthor
ity
.Thisshal
lal
socovernewdist
ributi
onutil
it
iest
hatwil
lregi
ste
r
withtheAuthori
ty.

"El
ectr
icc
ooperati
vesmayundert
akepowergener
ati
onuti
li
zingr
ene wabl
eenergys
ourc
es,
inc
ludi
nghybri
ds ys
tems
,acqui
si
tionandoper
ati
onofsubt
ransmis
sionordis
tri
buti
onasit
s
pri
marypurpos
e s
.
"ART.127.
 Regi
str
ati
onofElec
tri
cCooperat
ives
.–Theregis
trat
ionofanel
ect
ricc
ooperat
ive
withtheAuthor
ityundert
hisCodeshal
lbesubmitt
edforapprovalt
othemembersthr
ougha
ref
erendum,cal
ledfort
hepurposeasprovi
dedforunderArt
icl
es183and129ofthi
sCode.

"ART.128.
 Voti
ngRequir
ementforRegi
str
ati
on.–Incompli
ancewi
ththere
fer
endum asa
vot
ingprocedur
e,there
quirednumberofvot
esforre
gis
trat
ionwi
ththeAut
hori
tyshal
lbe
twentyper
cent(20%)ofallmembersi
ngoods t
andi
ng.

"ART.129.
 Document
stobeSubmitt
edforRegi
str
ati
onwitht
heAuthori
ty.–F
orpur
pos
esof
regi
str
ati
on,el
ectr
icc
ooper
ati
vess
halls
ubmitthefol
lowi
ngdocume
nt s
:

"(a)Copyoftheboardresol
uti
once r
tif
yingtother
esultofthevoteapprove
d
througharef
e r
endum approvi
ngtheregist
rati
onofthecooperat
ivewiththe
Authori
tyi
nc ompli
ancewi t
hArti
cle128;

"(b)Cer
tif
iedcopyoft
heart
icl
esofi
ncor
por
ati
on/
coope
rat
ionandby
lawsas
re
quire
dbyt heAuthor
ity
;

"(
c)Dul
yaudi
tedf
inanc
ials
tat
eme
ntsf
ort
hepas
ttwo(
2)y
ear
s;

"(d)Li
stofnamesofinc
umbentboardofdi
rec
torsandt
hei
raddr
ess
esc
ert
if
iedby
theboardsec
ret
aryandatt
est
edbythechai
rper
son;

"(e)Wit
hinsi
x(6)monthsfrom t
her egi
str
ati
on,thetr
easurers
hallsubmitas
worn
st
atementoft
heauthor
ize
ds har
ec api
tal
,thesubscr
ibe
dshar ec
api t
alofmember
s
andtheamountofpai
d-upsharecapit
alrecei
vedbythetr
e as
urer;and

"(
f)Bondsofac
count
abl
eof
fi
cer
s.

"ART.130.Regi
  st
rationOpt i
onsofElect
ricCooperat
ives
.–Elect
ricCoope rat
ivesregi
ste
red
withtheNationalElectri
fi
cati
onAdmi nis
trat
ion(NEA)underPresident
ialDe cr
e eNo.269,as
ame ndedwhichoptnott oregi
sterwit
ht heAuthori
tyareal
lowedt oretainthewor d
‘
coope r
ati
ve’intheirregis
terednames:Pr
  ovi
ded,Thattheyshal
lnotbee nti
tl
edt othe
benefit
sandpr i
vil
ege sunderthi
sCode .

"ART.131.
 Rol
eoftheEnergyRegul
atoryCommi s
sion.–Al lr
atesandtari
ffsofel
ect
ric
cooper
ati
vesregi
ste
redundertheAuthori
tyshal
lbes ubjec
ttother ul
esonapplic
ati
onand
approv
alofandbyt heEne
rgyRegul
atoryCommi ss
ionf ordis
tri
butionuti
li
ties
.

"ART.132. Ef
  fect
sofRegist
rati
onwi ththeAut hority.–(1)Upont hee ff
ecti
vit
yoft hisCode,
el
e ct
riccoope rati
vest
hatar edulyregist
eredwi ththeAut horit
y,andi s
suedac erti
fic
ateof
regis
tration,shallnolongerbecoveredbyPr e s
identialDecreeNo.269,asame ndedby
Presi
de ntialDe cr
eeNo.1645: Pr
ovided,Thatel ect
riccooperati
vesr egist
eredwi ththe
Author i
tys hallnowbec overe
dbyt hepr ovi
sionsoft hisCodeaswe llasfutur
er ulesand
is
suanc esoft heAuthorit
y:Pr
  ovi
ded, however,Thatt hesecurit
yoft enureandt hecolle
ctiv
e
bargainingagr eementbe t
we enthecoope r
ativemanage mentandt hee mployeesshallbe
respected,wi t
hnodi minutionoftheirexis
tings al
aries,emolume nts,ranksandot herbe nefi
ts;

"(2)Theel
e c
tri
ccooperat
ive
sregi
ste
redwiththeAuthor
itywi
thexis
tingl
oansobt
aine
dfrom
NEAafterJ
une26,2001s hallc
ont
inuetoobse
r v
etheter
msofs uc
hloansunti
lful
lpayme
nt
orsett
lementther
eof;
 "(3)Exceptasprovi
dedintheimme di
ate
lypr
ecedi
ngparagraph,t
heNEAshallnol
onger
exerc
iseregul
atoryorsupe
rvi
sorypowersonel
ectr
icc
ooperativ
esdul
yregi
ste
redwitht
he
Authorit
y;

"(4)Elect
riccooperative
sregister
edwi ththeAut horityar ee ntitl
edt oc ongres
sional
all
ocati
ons,grants,subsidi
ari
e sandothe rf
inancialas s
istanc eforr urale l
ect
rif
icati
onwhi ch
canbec oursedthrought heDe part
me ntofEne rgy,theAut hor i
tyand/ orl oc
algov er
nme nt
units
.Thee le
ctri
cc ooperati
vesregist
eredunde rthisCodec anav ailofthef i
nanc i
alservi
ces
andtechnicalassi
stanceprovidedbyt hegovernme ntf inanc ialinst
itutionsandt echnical
devel
opme ntage nciesontermsr espect
ingtheirinde pende nc easaut onomousc ooperati
ves;

"(5)Allcondone dloans ,s
ubsidies,grantsandotherass
ist
ances hal
lform partofthedonated
capit
alandf undsoft hee l
e c
triccoope rat
ive
sandass uc
h,itshallnotbes ol
d,tradednorbe
divi
dedintos hareholdingsatanyt i
me ;thes
edonatedcapit
al/fundshallbev al
uatedforthe
solepurposeofde terminingt hee quitypart
ici
pat
ionoftheme mbe rs:
 Provi
ded,Thatinthe
caseofdissol
utionoft hec oope r
ative,sai
ddonatedcapit
alshallbesubjecttoescheat
;and

"(6)El
ect
riccooperat
ive
sregi
ste
redandconf
irme
dwiththeAut
hor
ityunderRepubl
icAc
tNo.
6938andRe publi
cActNo.6939areher
ebydeemedr
egis
ter
edunde
rt hi
sCode.

"ART.133. ShareCapi
tali
nt heElect
ricCooperati
ves
.–Theele
c t
ricc
ooper
ati
ves hal
lis
sue
anddistr
ibutes har
ecert
if
icate
sunde rthenameoft heirmembers,t
aki
ngint
oc onsi
derat
ion
thei
rpreviouse qui
tyc
ontri
butions,theamor t
izat
ioncomponentthr
oughthepay ment
smade ,
capi
talbuild-upandothercapit
alcontri
butions.

"ART.134.
 Canc
ell
ationofRegis
trati
onwiththeAuthor
ity
.–Thec anc
ell
ati
onoft
he
regi
str
ati
onofane l
ec t
ricc
ooperati
veshal
lbegrant
edbyt heAut
horit
yasprov
ide
dunde
r
Arti
cl
es64to70oft hisCode.

"TheAuthori
ty,i
nc ons
ult
ationwiththeconc
ernedcooper
ati
vesector
,shal
lis
sueappr
opr
iat
e
rul
esandregulat
ionspert
ainingt
ot hepr
ovis
ionsofthi
sChapte
r."

SEC.
19.
 Ar
ticl
es119,120and121ofChapte
rXVIonMi
sce
llane
ousPr
ovi
si
onsoft
hes
ameCodear
e
here
byame ndedandshal
lnowread,asf
oll
ows:

CHAPTERXVII
I
MI
SCEL
L ANEOUSPROVISI
ONS

"ART.135.Compl
  i
anceWithOt herLaws.–TheL aborCodeandallotherlaborlaws,the
Soci
alSecuri
tyAct
,theMedic
alCareAc t
,andallothersoci
alle
gis
lat
ions,andallotherlaws
andexecuti
veorder
sshal
lapplytocooperat
ive
sdul yregi
ste
redunderthisCode.

"ART.136.  Regist
erofCooper at
ives.–TheAut hori
tyshallest
abli
shar egis
terwhi c
hs hall
containac hronol ogicalentr
yoft henameofe ver
ycoope rat
iveregi
ster
edordi ssol
vedunde r
thisCodet oge t
he rwi ththebasicinformat i
onr e
quiredforregis
trati
onordi ss
oluti
onandany
otherinformat ionc ons i
dere
dus eful.TheAut hori
tyshallpubli
shannual l
yalistofexi
s t
ing
cooperativ
e s,coope rati
vesunde rdissolut
ionandt hosewhos eregis
trat
ionarec ancel
led
duringthey eartogethe rwit
hs uchinf ormationone achofthem asmaybepr escri
bedint he
rulesandr egulations .

"ART.137.
 Set
tlementofDi
sput
es,Conc
il
iat
ion,andMedi
ati
onPr
oceedi
ngs
.–Di
sput
es
 amongme mbers,offi
cers,di
rect
ors,andc ommi t
teeme mbe rs
,andint
ra-
cooperati
ve,i
nte
r-
cooperat
ive,i
ntra-f
ederationorint
e r
-fe
de rat
iondispute
ss hal
l,asf
araspract
icabl
e,be
set
tle
dami cablyinaccordancewiththec onci
liat
ionorme diati
onme c
hanismse mbodi
edin
thebylawsofcoope r
ativesandinsuchot herapplic
ablelaws.

"Theconcil
iat
ionandmedi at
ionc
ommi t
teeoft
hecooper
ati
ves
hal
lfaci
li
tat
etheamicabl
e
set
tl
eme ntofint
ra-c
ooperati
vedi
sput
esanddis
put
e samongmembers
,offi
cer
s,di
rec
tors
,
andcommi tte
eme mbers
.

"Shoul ds uchconcil
iationorme di
ationpr oceedi
ngf ai
l,themat t
ershallbesett
ledthrough
voluntaryar bit
rati
on: Pr ovi
ded, howev er,Thatbeforeanypar tycanvali
dlyfil
eac omplaint
witht heAut horit
yforv oluntaryarbitr
ation,itmus tfi
rstsecureacerti
fic
ati
onf r
om its
concil
iationandme diationc ommi t
teeandf r
om itsconcili
ati
onandme diat
ioncommi tte
e
andf rom t hecooperativeuni onorf ede r
ationtowhi chitbe l
ongsthatdespit
ealleff
ortsto
set
t l
et hei ss
ues,t
hes amehav efail
ed.

"Thejuri
sdi
cti
onoft hevoluntaryarbi
tratorsshal
lbee xcl
usiveandorigi
nalandthe i
r
deci
si
onsshallbeappe al
ablet
ot heOf f
iceofthePr es
ident.TheAuthorit
yshalli
ssueand
adopttheproperrul
e sofproc
e duregoverningarbit
rati
onast heprimaryande xcl
usiv
emode
fordi
sputeresol
uti
oni naccor
danc ewitht heAlte
rnativ
eDi sputeRes
oluti
onAc tof2004.

"F
ort
hispur
pos
e,t
heAut
hor
itys
hal
lcons
tit
uteal
is
tofqual
if
iedv
olunt
aryar
bit
rat
ors
."

SEC.20.
 Anewar t
icl
eisi
nse
rte
dinChapt
erXVI
IIont
heMi
sce
llane
ousPr
ovi
si
onsoft
hes
ameCode
andshal
lread,asfol
lows
:

"ART.138. J
ointCongressi
onalOv ers
ightCommi tteeonCooper ati
ve(JCOCC).–The r
eis
herebycreat
edaJ ointCongres
sionalOv er
sightCommi t
teecompos edoftheChairmanofthe
SenateCommi tte
eonCoope r
ati
v esandtheChai rmanoft heHous eCommi tte
eon
Cooperati
vesDe v
elopme nt
,withf our(4)me mbe r
se achfrom bothHouse s
.Thesaid
me mbersshallbedulyappointe
dbyt heSenatePre s
identandt heSpeakeroftheHouseof
Represent
ativesf
rom theme mbe rsofthere s
pecti
vec ommi t
teebasedont heproport
ional
repres
entati
onoft heparti
esorc oali
ti
onthe rei
n.

"TheJoi
ntOvers
ightCommit
tees
hallr
evi
ewandapprov
etheimple
ment
ingr
ule
sand
regul
ati
onsoft
hisCodeandmoni
torit
sprope
rimpl
ementat
ion.

"Theannualappropri
atef
ortheoversi
ghtcommitte
eshal
lbechar
gedt
othebudge
tofbot
h
HousesofCongre
s si
ntheGeneralAppropr
iat
ionsAct(
GAA).
"

SEC.21.
 Arti
cl
e122ishe
rebydel
ete
d.Art
icl
es123,124,125,126,127,128,129and130ofChapt
er
XVIIonFinalPr
ovi
si
onsofthi
sCodear
eame ndedtoread,asfol
lows:

CHAPTERXI
X
F
INALPROVISI
ONS

"ART.139. I
mpl ement i
ngRul esandRegul ati
ons .–TheAuthori
tyshallis
suerulesand
regul
ationstoimpl eme ntthoseprovi
sionsoft hisCodewhichexpress
lycallf
ort heis
suance
there
of.Thispar agraphshallnotapplytot hosec as
eswherei
nas peci
ficprovi
si
onoft hisCode
expres
slydesignat e
spar t
icul
argovernme ntage ncie
swhichshal
lissuetheregulati
onscall
ed
forbyanypr ovisionofthisCode.
"ART.140.PenalPr
  ovi
si
ons
.–Thef
oll
owi
ngac
tsoromi
ssi
onsaf
fec
tingc
oope
rat
ive
sar
e
here
bypr ohi
bit
ed:

"(1)Theus eofthewor d‘cooperati

ve’byanype rsonorofpe rsonsoror ganiz
ati
ons,
unlessdulyregi
ster
edasac ooperat
iveunderthisCodee xceptaspr ov i
de dforunder
Arti
cle130he re
of.Incaseofv i
olati
on,theindi
vidualorindi vi
dualsc once r
ned,ori
n
thecaseofanor ganiz
ati
on,i t
soffic
ersanddirectorsshal
l,uponc onv ict
ion,each
suff
erthepe nal
tyofimpr i
sonme ntofnotlessthant wo( 2)yearsnormor ethanfi
ve
(5)yearsandaf i
nenote xceedingTwe ntyt
housandpe s
os( P20,000.00)orbot hatthe
disc
reti
onoft hecourt;

"TheAut
hor
itymaymot
upr
opr
io,i
nit
iat
ecompl
aint
sforv
iol
ati
onsoft
hispr
ovi
si
on.

"(2)Anype r
sonwhowi l
lf
ullyat t
e mptsinanymanne rtoe vadeorde feattaxin
viol
ationoft heprovis
ionsofAr ti
cles60and61oft hisCodes hallinaddi t
ionthereof
,
bepuni shedbyaf ineofnotl es sthanThirtythousandpe sos(P30,000.00)butnot
mor ethanOnehundr edt hous andpe sos(P100,000.
00)ands ufferimprisonme ntof
notlessthant wo( 2)yearsbutnotmor ethanfour( 4)years:Provided,Thatthe
convicti
onorac quitt
alobt ai
ne dunde rthisArti
cleshallnotbeabart ot hefil
ingofa
civi
lsuitforthecollec
tionoft ax e
s ;

"(3)Dire c
torindir
e c
tviolati
onorc i
rcumv entionoft heprovi
sionsofArtic
les60and
61oft hisCodecommi tteebyanypubl icoffi
cialore mployeeofanybur eau,offi
ceor
agencyoft hegovernme ntthatde pri
ves,dimi nis
he sorinanymanne rhinde r
sor
rest
ric
tsanydul yregis
teredcoope rati
vef rom thef ul
lenjoymentofthee xempt i
on
from t
hepay mentofthet axes
,fee sandc hargese nume r
atedtherei
n,shallupon
convic
tion,suff
erape naltyofnotl essthatone( 1)y earbutnotmor ethanf i
ve(5)
yearsi
mpr i
sonmentoraf ineint heamountofnotl e
ssthanFivethousandpe sos
(P5,
000. 00)orbothatt hediscr
etionoft hec ourtands hallf
urtherbedisquali
fiedto
holdanyot heroffi
ce;

"(4)Dir
e c
torindirec
tint
erf
erenc
eori nt
erv
ent
ionbyanypubl
icof
fi
cialoremployee
int
otheinternalaff
air
sofacooperat
iveofwhi
chheisnotamember,suchas,butnot
li
mitedto,thefol
lowing:

"(a)I
nfluenc
ingthee
lec
tionorappoint
me ntofoff
ice
rs,di
rec
tors
,committ
ee
me mbersandemploy
eesthroughpubli
corprivat
eendorsementorcampai
gn
fororagai
nstanyper
sonorgr oupofper
sons;

"(b)Requir
ingpr
iorc
lear
anc
esf
oranypol
ic
yorde
cis
ionwi
thi
nthe
cooper
ativ
e;

"(c)Reque
sti
ngordemandi
ngforthecr
eati
onofposi
ti
onsororgani
zat
ional
units
,orrec
omme ndi
nganype
rsonforappoi
ntment
,trans
fer
,orremoval
fr
om hisposi
ti
on;or

"(d)Anyotherac
tsi
nimi
caloradv
ers
etot
heaut
onomyandi
nde
pende
nceof
cooper
ati
ves.

"(5)Adirec
tor
,offi
cerorcommitt
eeme mbe
rwhov i
olat
edtheprovi
sionsofAr
ticle
45ont heLi
abi
lit
yofDirect
ors
,Offi
cer
sandCommi tte
eMe mbers,Ar
ticl
e48ont he
Disl
oyalt
yofaDirect
or,andArt
icl
e49ontheIl
legalUseofConf
ident
ialInf
ormation
 shal
luponconvic
tionsuf f
erafi
neofnotlesst
hanF i
vehundr e
dthousandpesos
(P500,
000.
00)normor ethanFi
vehundredthousandpesos(P500,
000.00)or
impris
onmentofnotl essthanf
ive(
5)yearsbutnotmoret hanten(10)year
sorbot
h
atthecour
t’sdi
scr
e t
ion;

"(6)Thefollowi
ngarec onside
r e
doffensespunis
hablebyape nal
tyofimpr
isonment
ofnotlessthanone(1)y earnormor ethanfiv
e( 5)year
soraf i
neofnotmor et
han
Fi
ftythousandpesos(P50,000.00)orbothatthedi s
cret
ionofthecour
t:

"(a)Omiss
ionorre
f us
altof
urnis
hanyinf
ormat
ion,r
epor
torot
her
documentthati
srequir
edunderthi
sCode
;

"(
b)Providi
nginf
ormati
on,r
epor
tsorot
herdoc
ument
stot
heAuthor
ityt
hat
ar
erequir
e dunde
rthi
sCodewhic
hthepers
onknowst
obefal
seor
misl
eadi
ng;

"(c)Omissi
onorre
fusaltoke
epabookorr
egi
ste
runde
rthi
sCodeort
omake
therequi
redent
rythe
r e
in;

"(d)Maki
nganent
ryr
equir
edunderthi
sCodei
nabookorr
egi
ste
r,whi
ch
theper
sonknowst
obefal
seormis
leadi
ng;

"(
e)Hinderi
nganaut
horiz
edper
sonfr
om maki
nganins
pec
tion,audi
t,
ex
aminati
onorinv
est
igat
ionr
equir
edunde
rthi
sCode
;

"(f
)Fai
lur
etocompl
ywi
thanor
derorwr
itt
eni
nst
ruc
tionsi
ssue
dorgi
venby
theAut
hori
ty;

"(g)Vi
olat
ionoft
hepr
ovi
si
onsr
egar
dingt
rans
act
ionswi
thar
est
ric
tedpar
ty;
and

"(h)Abetti
ng,counse
ling,al
lowing,authori
zingorcommandi nganother
pers
ont ocommi tanof f
ensepunishablebythisCode:
 Pr
ovided,Thati
ncase
theviol
atorisacooperati
veorjuri
dicalpers
on,thepenaltyshallbei
mposed
onitsdir
ectorsandoff
icers.

"(7)Anyviol
ati
onofanyprov i
si
onofthisCodeforwhi c
hnopenaltyisi
mpos e
dshall
bepunishe
dbyi mpri
sonme ntofnotles
sthansi
x( 6)monthsnormor ethanone(1)
yearandaf i
neofnotles
sthanOnet housandpe
s os(P1,
000.
00),orbothatthe
di
s c
reti
onofthecourt
.

"Incaseofv i
olat
ionofanypr ovi
sionofthi
sCode ,t
hei ndividualorindivi
duals,andinthe
caseoforgani zat
ionsorgov ernme ntage
ncies,i
t soffi
cers,anddi re
ctorsshall
,uponc onvi
cti
on
byaCour t ,eachsufferape nalt
yofnotlessthant wo( 2)y earsbutnotmor ethanf i
ve(5)
yearsimpr is
onme ntoraf ineint heamountofnotl essthanTwe ntythousandpe sos
(P20,000.00),orbot hatthedi s
creti
onofthec our t
.Inthec aseofapubl icoffi
cialor
empl oyee
,t heoffendershalluponc onvi
cti
on,s uffertheac cess
orype nal
tyofte mporary
absolutedi s
quali
ficati
on.

"ART.141.
 Pr
int
ingandDist
ribut
ion.–(1)TheNati
onalPri
nti
ngOffi
ces
hallpublis
hthis
CodeintheOf
  fi
ci
alGazet
te 
inful
lwithi
nsixt
y(60)daysfr
om thedat
eofapprovalthe
reof.
Copi
esofthi
sCodeshal
lbegiventoever
yde part
me nt,agenc
yandins
trument
ali
tyoft
he
Nati
onalGover
nment,i
ncludi
ngregi
onal,pr
ov i
ncialoff
ice
sandloc
algover
nmentsi
ncl
udi
ng
gove
rnment-
ownedandc ontr
oll
edcorporat
ions.

"(2)Alldulyr egi
ster
edc ooperat
ive
sandt hei
rfeder
ati
ons ,unionsandas s
ociati
ons,and
cooperativ
ec orporat
ionsshallbegive
none( 1)copyeac hatcost.The
r e
after
,e v
erynewly
regi
ste
r edcoope rat
iveshallbeis
suedatcostacopyoft hisCodeandt heregulati
ons
promul gate
dt hereontogetherwithitsc
erti
fi
cat
eofr egistr
ati
on.

"ART.142.I
 nter
pret
ati
onandCons t
ruct
ion.–Inc aseofdoubtastothemeani
ngofany
provi
sionofhisCodeorther
e gul
ati
onsiss
ue dinpursuancethe
reof,t
hesameshal
lbe
resol
vedli
berall
yinfav
orofthecooper
ativesandt hei
rmembe rs
.

"ART.143. RepealingClaus e.–Ex ceptase xpress

lypr ovidedbyt hisCode ,Presi
denti
alDe cree
No.175andal lotherlaws ,orpar tsthe r
e of,i
ncons is
tentwi thanypr ovisionofthisCodes hall
bedeeme dr epealed:Pr
  ovided,Thatt hepr ovisi
onsofSe ct
ions3,5,and7ofPr esi
dential
DecreeNo.1645,Ex ecuti
veOr de
rNo.623,s e
riesof2007.Re ve
nueRe gulationNo.20-2001,
andalllaws,de cr
ee s
,e x
ecut iv
eor de rs,i
mpl eme ntingrul e
sandr e
gulations,BIRcirc
ulars,
me morandum or de r
s,lett
e rsofinst r
uc t
ion,localgov ernme ntordinance s,orpart
sther e
of
inc
onsiste
ntwi thanyoft hepr ovisionsoft hisAc tarehe rebyrepealed,ame ndedormodi fi
ed
accor
dingly.

"ART.144. Tr
  ansi
toryProv is
ions.-(
1)Al lcooperativesregiste
re dandc onfirmedwi t
hthe
Authorit
yunde rRepublicAc tNo.6938andRe publicAc tNo.6939,ar ehe rebydeeme d
regi
steredunde rthiscode ,andane wc er
tif
icateofr egist
rati
ons hallbei s
suedbyt he
authorit
y :
 Provi
ded,Thats uchc ooperativ
es hallsubmi ttothene arestofficeoftheauthor
itya
copyoft heircert
ifi
cateofr egis
trati
onorc e
rtif
icateofc onfirmation,thear ti
cl
esof
cooperation,thei
rby l
aws ,andt heirlates
taudi tedfinancialstate
me ntwi thinone(1)year
from t
hee ff
ecti
vit
yoft hiscode ,ot
he rwisethes hal
lbede eme dcancelle mot
d  upropri
o.

"(2)F oll
owi ngt hei ssuanc eofthene wc e
rtifi
cateofregis
trat i
on,t her egi
steredc oope rati
ves
shallsecuredt heirc ertif
icateoftaxe xemptionfrom thene are s
tof fic
eoft heBur eauof
Inte
r nalReve nue( BIR):Pr
  ovided,Thatsuche xemptionsshal lbev alidoffive( 5)y earsfrom
thedat eofis sue: Prov i
ded, f
urther,Thatallunpaidassess
me ntsofpr evi
ous l
yr egister
ed
coope rat
ives hallbet hesubjectofc ompromi s
es et
tlementont ermsf avorabletos uch
coope rat
ive;and:  Prov i
ded, f
inall
y,ThattheBI Randt heaut horitys hallbejointlyissuet he
necessaryregul ationsont hisexempt i
onandc ompromi s
ewi thinni nety(90)day sfrom the
eff
ec ti
vit
yfrom t hisCode .

"(3)Re gis
trat i
onofe l
ectr
iccooperati
ve swi t
ht heAuthorityshallnotbec onsi
de r
edasa
transfer
redofowne r
shipofitsass
etsandl iabil
itie
snors halli
tcons ti
tuteac hangei nthe
nature,structure,andstatusofthecoope rative
.Saidregistrat
ions hal
lnotr es
ultinthe
revocati
onoft hecondone dloansunde rRe publicActNo.9136,ot herwi seknownast he
Electr
icPowe rIndust
ryRe for
m Act:Pr
  ov i
ded,Thatel e
ctriccooperativ
e swi t
he xis
tingloans
shallnotbes ubjec
ttothec ontr
olands upe rvi
sionsofitscredit
orsands hallonlybelimitedto
thefulfil
lme ntofe ac
hc i
vilobli
gati
ons.

"ART.
145.Separ
  abil
tyClause.-Shoul
danypartoft
hiscodebedecl
aredunc
ons
tit
uti
onal
,the
val
idi
tyofremai
ningprovis
ionhe r
eofshal
lre
maininfullande
ffe
ct.

"ART.
146.Ef
  f
ecti
vit
yClause.-Thi
scodes
hal
ltakee
ffe
ctf
if
tee
n(15)day
sfr
om i
tspubl
ic
ati
on
inanewspaperofgene
r alci
rcul
ati
on.
Appr
ove
d,

(
Sgd.) 
PROSPEROC.NOGRAL ES (
Sgd.
) J
UANPONCEENRILE
Speake
roftheHouseof Pre
sidentoft
heSe
nat
e
Repre
sent
ati
ves

Thi
sActwhi
chi
sacons
oli
dat
ionofSenat
eBillNo.2264andHouseBillNo.4312wasf
inal
lypas
sed
bytheSe
nat
eandt
heHouseofRepre
sentat
ivesonDecember16,2008.

(
Sgd.
) 
MARI LYNB.BARUA-YAP (
Sgd.
) 
EMMAL IRI
O-REYES
Secre
taryGeneral Sec
ret
aryofSenat
e
HouseofRepre
senati
ves

Appr
ove
d: 
FEB17,2009

(
Sgd.
) 
GLORI AMACAPAGAL-ARROYO
Pres
identoft
hePhil
ippi
nes