Philippine COOPERATIVE_Republic Act 9520

8/13/2019 Philippine COOPERATIVE_Republic Act 9520

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Republic Act No. 9520

February 17, 2009

AN ACT AMENDIN T!E C""#ERATI$E C"DE "F T!E #!I%I##INE& T" 'E (N")N A& T!E*#!I%I##INE C""#ERATI$E C"DE "F 200+*

'e it eacte- by te &eate a- !ou/e o Repre/etatie/ o te #ilippie/ i Core// a//e3ble-4

&ectio 1. Article/ 1, 2, , 6 a- 5 o Capter 1 o eeral Cocept/ a- #riciple/ o Republic Act No. 9+,oter8i/e o8 a/ te *Cooperatie Co-e o te #ilippie/,* are ereby a3e-e- to rea- a/ ollo8/4

C!A#TER IENERA% C"NCE#T& AND #RINCI#%E&

*ARTIC%E 1. Title. : Ti/ Act /all be o8 a/ te *#ilippie Cooperatie Co-e o 200+*.

*ART. 2. Declaratio o #olicy.: It i/ te -eclare- policy o te &tate to o/ter te creatio a- ro8t ocooperatie/ a/ a practical eicle or pro3oti /el:reliace a- are//i people po8er to8ar-/ teattai3et o ecoo3ic -eelop3et a- /ocial ;u/tice. Te &tate /all ecourae te priate /ector tou-ertae te actual or3atio a- orai


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re/ere/, part o 8ic /oul- at lea/t be i-ii/ible beeitti 3e3ber/ i proportio to teir partoae ote cooperatieB/ bub/ie// a-, /upporti oter actiitie/ approe- by te 3e3ber/ip.

*?6@ Autoo3y a- I-epe-ece : Cooperatie/ are autoo3ou/, /el:elp oraierci/i all te rit/ a- peror3i all te obliatio/ pertaii to cooperatie/, a/ proi-e- by ti/ Co-e,it/ article/ o cooperatio a- byla8/4 #roi-e-, Tat or cooperatie/ 8it u3erou/ a- -i/per/e-3e3ber/ip, te eeral a//e3bly 3ay be co3po/e- o -eleate/ electe- by eac /ector, capter or -i/tricto te cooperatie i accor-ace 8it te rule/ a- reulatio/ o te Cooperatie Deelop3et Autority

*?@ 'oar- o Director/ /all 3ea tat bo-y etru/te- 8it te 3aae3et o te aair/ o te cooperatieu-er it/ article/ o cooperatio a- byla8/

*?6@ Co33ittee /all reer to ay bo-y etru/te- 8it /peciic uctio/ a- re/po/ibilitie/ u-er te byla8/ or

re/olutio o te eeral a//e3bly or te boar- o -irector/*?5@ Article/ o Cooperatio 3ea/ te article/ o cooperatio rei/tere- u-er ti/ Co-e a- iclu-e/ arei/tere- a3e-3et tereo

*?@ 'yla8/ 3ea/ te byla8/ rei/tere- u-er ti/ Co-e a- iclu-e/ ay rei/tere- a3e-3et tereo

*?7@ Rei/tratio 3ea/ te operatie act rati ;uri-ical per/oality to a propo/e- cooperatie a- i/ei-ece- by a certiicate o rei/tratio

*?+@ Cooperatie Deelop3et Autority reer/ to te oer3et aecy i care o te rei/tratio a-reulatio o cooperatie/ a/ /uc ereiater reerre- to / te Autority

*?9@ ier/ally Accepte- #riciple/ 3ea/ tat bo-y o cooperatie priciple/ a-ere- to 8orl-8i-e bycooperatie/

*?10@ Repre/etatie A//e3bly 3ea/ te ull 3e3ber/ip o a bo-y o repre/etatie/ electe- by eac o te/ector/, capter or -i/trict o te cooperatie -uly a//e3ble- or te purpo/e o e>erci/i /uc po8er/ la8ully-eleate- uto te3 by te eeral a//e3bly i accor-ace 8it it/ byla8/

*?11@ "icer/ o te Cooperatie /all iclu-e te 3e3ber/ o te boar- o -irector/, 3e3ber/ o te -iereco33ittee create- by te eeral a//e3bly, eeral 3aaer or cie e>ecutie oicer, /ecretary, trea/urea- 3e3ber/ ol-i oter po/itio/ a/ 3ay be proi-e- or i teir byla8/


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*?12@ &ocial Au-it i/ a proce-ure 8erei te cooperatie a//e//e/ it/ /ocial i3pact a- etical peror3acei/: :i/ it/ /tate- 3i//io, i/io, oal/ a- co-e o /ocial re/po/ibility or cooperatie/ to be e/tabli/e-by te Autority i co/ultatio 8it te cooperatie /ector. It eable/ te cooperatie to -eelop a proce//

8ereby it ca accout or it/ /ocial peror3ace a- ealuate it/ i3pact i te co33uity a- be accoutableor it/ -eci/io/ a- actio/ to it/ reular 3e3ber/

*?1@ #eror3ace Au-it /all reer to a au-it o te eiciecy a- eectiee// o te cooperatie a/ a8ole it/ 3aae3et a- oicer/ a- it/ ariou/ re/po/ibility ceter/ a/ ba/i/ or i3proi i-ii-uatea3 or oerall peror3ace a- or ob;ectiely ior3i te eeral 3e3ber/ip o /uc peror3ace

*?16@ A &ile:%ie or &ile:#urpo/e Cooperatie /all iclu-e cooperatie u-ertai actiitie/ 8ic arerelate- to it/ 3ai lie o bu/ie// or purpo/e

*?15@ &erice Cooperatie/ are to/e 8ic proi-e ay type o /erice to it/ 3e3ber/, iclu-i but otli3ite- to, tra/port, ior3atio a- co33uicatio, i/urace, ou/i, electric, ealt /erice/, e-ucatiobai, a- /ai/ a- cre-it

*?1@ &ub/i-iary Cooperatie reer/ to tree or 3ore pri3ary cooperatie/, -oi te /a3e lie o bu/ie//oraie/i/urace a- ariculturalGi-u/trial proce//i eterpri/e/, a- public 3aret/

*?10@ To coor-iate a- acilitate te actiitie/ o cooperatie/

*?11@ To a-ocate or te cau/e o te cooperatie 3oe3et/

*?12@ To e/ure te iability o cooperatie/ trou te utili


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*?16@ To u-ertae ay a- all oter actiitie/ or te eectie a- eiciet i3ple3etatio o te proi/io/ oti/ Co-e.

*ART. 7. "b;ectie/ a- oal/ o a Cooperatie. Te pri3ary ob;ectie o eery cooperatie i/ to elp i3proete =uality o lie o it/ 3e3ber/. To8ar-/ ti/ e-, te cooperatie /all ai3 to4

*?a@ #roi-e oo-/ a- /erice/ to it/ 3e3ber/ to eable te3 to attai icrea/e- ico3e, /ai/ie/t3et/, pro-uctiity, a- purca/i po8er, a- pro3ote a3o te3/ele/ e=uitable -i/tributio o e

/urplu/ trou 3a>i3u3 utiliclu/ie u/e o it/ rei/tere- a3e, to /ue a- be /ue-

*?2@ " /ucce//io

*?@ To a3e- it/ article/ o cooperatio i accor-ace 8it te proi/io/ o ti/ Co-e

*?6@ To a-opt byla8/ ot cotrary to la8, 3oral/ or public policy, a- to a3e- a- repeal te /a3e iaccor-ace 8it ti/ Co-e

*?5@ To purca/e, receie, tae or rat, ol-, coey, /ell, lea/e, ple-e, 3ortae, a- oter8i/e -eal 8it/uc real a- per/oal property a/ te tra/actio o te la8ul aair/ o te cooperatie 3ay rea/oably a-ece//arily re=uire, /ub;ect to te li3itatio/ pre/cribe- by la8 a- te Co/titutio

*?@ To eter ito -ii/io, 3erer or co/oli-atio, a/ proi-e- i ti/ Co-e

*?7@ To or3 /ub/i-iary cooperatie/ a- ;oi e-eratio/ or uio/, a/ proi-e- i ti/ Co-e

*?+@ To aail o loa/, be etitle- to cre-it a- to accept a- receie rat/, -oatio/ a- a//i/tace ro3orei a- -o3e/tic /ource/, /ub;ect to te co-itio/ o /ai- loa/, cre-it/, rat/, -oatio/ or a//i/tacetat 8ill ot u-er3ie te autoo3y o te cooperatie. Te Autority, upo 8ritte re=ue/t, /all proi-eece//ary a//i/tace i te -ocu3etary re=uire3et/ or te loa/, cre-it, rat/, -oatio/ a- oteriacial /upport

*?9@ To aail o preeretial rit/ rate- to cooperatie/ u-er Republic Act No. 710, oter8i/e o8 a/te %ocal oer3et Co-e, a- oter la8/, particularly to/e i te rat o raci/e/ to e/tabli/co/truct, operate a- 3aitai errie/, 8are/, 3aret/ or /lauterou/e/ a- to lea/e public utilitie/,iclu-i acce// to e>te/io a- o:/ite re/earc /erice/ a- acilitie/ relate- to ariculture a- i/eryactiitie/


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*?10@ To orai


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*?6@ Four ?6@ copie/ eac o te propo/e- article/ o cooperatio, byla8/, a- te eeral /tate3et re=uire-u-er Article 11 o ti/ Co-e /all be /ub3itte- to te Autority.

*?5@ No cooperatie, oter ta a cooperatie uio a/ -e/cribe- u-er Article 25 ereo, /all be rei/tere-ule// te article/ o cooperatio i/ acco3paie- 8it te bo-/ o te accoutable oicer/ a- a /8or/tate3et/ o te trea/urer electe- by te /ub/criber/ /o8i tat at lea/t t8ety:ie per cetu3 ?25H@ ote autori


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te applicatio i/ -ee3e- approe-, ule// te cau/e o te -elay i/ attributable to te applicat4 #roi-e-Tat i ca/e o a -eial o te applicatio or rei/tratio, a appeal /all lie 8it te "ice o te #re/i-et

8iti iety ?90@ -ay/ ro3 receipt o otice o /uc -eial4 #roi-e-, urter, Tat ailure o te "ice o te#re/i-et to act o te appeal 8iti iety ?90@ -ay/ ro3 te ili tereo /all 3ea approal o /ai-applicatio.

*ART. 17. Certiicate o Rei/tratio. A certiicate o rei/tratio i//ue- by te Autority u-er it/ oicial /eal/all be coclu/ie ei-ece tat te cooperatie terei 3etioe- i/ -uly rei/tere- ule// it i/ proe- tate rei/tratio tereo a/ bee cacelle-.

*ART. 1+. A3e-3et o Article/ o Cooperatio a- 'yla8/. le// oter8i/e pre/cribe- by ti/ Co-e a-or leiti3ate purpo/e/, ay proi/io or 3atter /tate- i te article/ o cooperatio a- by la8/ 3ay bea3e-e- by t8o:tir-/ ?2G@ ote o all te 3e3ber/ 8it oti rit/, 8itout pre;u-ice to te rit o te-i//eti 3e3ber/ to e>erci/e teir rit to 8it-ra8 teir 3e3ber/ip u-er Article 0.

'ot te oriial a- a3e-e- article/ a-Gor byla8/ /all cotai all proi/io/ re=uire- by la8 to be /et outi te article/ o cooperatio a- by la8/. A3e-3et/ /all be i-icate- by u-er/cori or oter8i/eappropriately i-icati te cae or cae/ 3a-e a- a copy o te a3e-e- article/ or a3e-e- byla8/-uly certiie- u-er oat by te cooperatie /ecretary a- a 3a;ority o te -irector/ /tati te act tat /ai-a3e-3et or a3e-3et/ to te article/ o cooperatio a-Gor byla8/ ae bee -uly approe- by tere=uire- ote o te 3e3ber/. All a3e-3et/ to te article o cooperatio a-Gor byla8/ /all be /ub3itte- to

te Autority. Te a3e-3et/ /all tae eect upo it/ approal by te autority or 8iti tirty ?0@ -ay/ro3 te -ate o ili tereo i ot acte- upo by te Autority or a cau/e ot attributable to te cooperatie.

*ART. 19. Cotract/ E>ecute- #rior to Rei/tratio a- Eect/ Tereo. Cotract/ e>ecute- bet8ee priateper/o/ a- cooperatie/ prior to te rei/tratio o te cooperatie /all re3ai ali- a- bi-i bet8eete partie/ a- upo rei/tratio o te cooperatie. A or3al 8ritte cotract /all be a-opte- a- 3a-e i tecooperatieB/ a3e or o it/ beal prior to it/ rei/tratio.

*ART. 20. Dii/io o Cooperatie/. Ay rei/tere- cooperatie 3ay, by a re/olutio approe- by a ote otree:ourt/ ?G6@ o all te 3e3ber/ 8it oti rit/, pre/et a- co/tituti a =uoru3, re/ole to -ii-eit/el ito te t8o ?2@ or 3ore cooperatie/. Te proce-ure or /uc -ii/io /all be pre/cribe- i tereulatio/ o te Autority4 #roi-e-, Tat all te re=uire3et/ /et ort i ti/ Co-e ae bee co3plie- 8it

by te e8 cooperatie/4 #roi-e-, urter, Tat o -ii/io o a cooperatie i rau- o cre-itor/ /all be ali-.*ART. 21. Merer a- Co/oli-atio o Cooperatie/. ?1@ T8o ?2@ or 3ore cooperatie/ 3ay 3ere ito a/ile cooperatie 8ic /all eiter be oe o te co/tituet cooperatie/ or te co/oli-ate- cooperatie.

*?2@ No 3erer or co/oli-atio /all be ali- ule// approe- by a tree:ourt/ ?G6@ ote o all te 3e3ber/8it oti rit/, pre/et a- co/tituti a =uoru3 o eac o te co/tituet cooperatie/ at /eparateeeral a//e3bly 3eeti/. Te -i//eti 3e3ber/ /all ae te rit to e>erci/e teir rit to 8it-ra8teir 3e3ber/ip pur/uat to Article 0.

*?@ Te Autority /all i//ue te ui-elie/ oeri te proce-ure o 3erer or co/oli-atio ocooperatie/. I ay ca/e, te 3erer or co/oli-atio o cooperatie/. I ay ca/e, te 3erer orco/oli-atio /all be eectie upo te i//uace o te certiicate o 3erer or co/oli-atio by te Autority.

*ART. 22. Eect/ o Merer a- Co/oli-atio. Te 3erer or co/oli-atio o cooperatie/ /all ae teollo8i eect/4

*?1@ Te co/tituet cooperatie/ /all beco3e a /ile cooperatie 8ic, i ca/e o 3erer, /all be te/urii cooperatie, a-, i ca/e o co/oli-atio, /all be te co/oli-ate- cooperatie

*?2@ Te /eparate e>i/tece o te co/tituet cooperatie/ /all cea/e, e>cept tat o te /urii or teco/oli-ate- cooperatie

*?@ Te /urii or te co/oli-ate- cooperatie /all po//e// al te a//et/, rit/, priilee/, i33uitie/a- raci/e/ o eac o te co/tituet cooperatie/


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*?6@ Te /urii or te co/oli-ate- cooperatie /all po//e// all te a//et/, rit/, priilee/, i33uitie/a- raci/e/ o eac o te co/tituet cooperatie/ a-

*?5@ Te /urii or te co/oli-ate- cooperatie /all be re/po/ible or all te liabilitie/ a- obliatio oeac o te co/tituet cooperatie/ i te /a3e 3aer a/ i /uc /urii or co/oli-ate- cooperatie a-it/el icurre- /uc liabilitie/ or obliatio/. Ay clai3, actio or procee-i pe-i by or aai/t ay /ucco/tituet cooperatie/ 3ay be pro/ecute- by or aai/t te /urii or co/oli-ate- cooperatie, a/ teca/e 3ay be. Neiter te rit/ o cre-itor/ or ay lie upo te property o ay /uc co/tituet cooperatie/

/all be i3paire- by /uc 3erer or co/oli-atio.

*ART. 2. Type a- Cateorie/ o Cooperatie/. ?1@ Type/ o Cooperatie/ Cooperatie/ 3ay all u-er ay ote ollo8i type/4

*?a@ Cre-it Cooperatie i/ oe tat pro3ote/ a- u-ertae/ /ai/ a- le-i /erice/ a3o it/3e3ber/. It eerate/ a co33o pool o u-/ i or-er to proi-e iacial a//i/tace to it/ 3e3ber/ opro-uctie a- proi-et purpo/e/

*?b@ Co/u3er/ Cooperatie i/ oe o te pri3ary purpo/e o 8ic i/ to procure a- -i/tribute co33o-itie/ to3e3ber/ a- o:3e3ber/

*?c@ #ro-ucer/ Cooperatie i/ oe tat u-ertae/ ;oit pro-uctio 8eter aricultural or i-u/trial. It i/or3e- a- operate- by it/ 3e3ber/ to u-ertae te pro-uctio a- proce//i o ra8 3aterial/ or oo-/pro-uce- by it/ 3e3ber/ ito ii/e- or proce//e- pro-uct/ or /ale by te cooperatie to it/ 3e3ber/ a-o:3e3ber/. Ay e- pro-uct or it/ -eriatie ari/i ro3 te ra8 3aterial/ pro-uce- by it/ 3e3ber/, /ol-i te a3e a- or te accout o te cooperatie, /all be -ee3e- a pro-uct o te cooperatie a- it/3e3ber/

*?-@ Mareti Cooperatie i/ oe 8ic eae/ i te /upply o pro-uctio iput/ to 3e3ber/ a- 3aret/teir pro-uct/

*?e@ &erice Cooperatie i/ oe 8ic eae/ i 3e-ical a- -etal care, o/pitali


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*?3@ Fiacial &erice Cooperatie i/ oe orai


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*?e@ To coor-iate a- acilitate te actiitie/ o it/ 3e3ber cooperatie/

*?@ To eter ito ;oit eture/ 8it atioal or iteratioal cooperatie/ o oter coutrie/ i te 3auacturea- /ale o pro-uct/ a-Gor /erice/ i te #ilippie/ a- abroa- a-

*?@ To peror3 /uc oter uctio/ a/ 3ay be ece//ary to attai it/ ob;ectie/.

*A e-eratio o cooperatie/ 3ay be rei/tere- by carryi out te or3alitie/ or rei/tratio o a cooperatie.

*Rei/tere- cooperatie/ 3ay orai


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*ART. 27. oer3et "icer/ a- E3ployee/. ?1@ Ay oicer or e3ployee o te Autority /all be-i/=ualiie- to be electe- or appoite- to ay po/itio i a cooperatie4 #roi-e-, Tat te -i/=ualiicatio -oe/ot e>te- to a cooperatie oraite- to a party li/t repre/etatie bei a oicer o acooperatie e or /e repre/et/ a-

*?@ Ay oer3et e3ployee or oicial 3ay, i te -i/care o i/ -utie/ a/ a 3e3ber i te cooperatie, beallo8e- by te e- o oice cocere- to u/e oicial ti3e or atte-ace at te eeral a//e3bly, boar- a-co33ittee 3eeti/ o cooperatie/ a/ 8ell a/ cooperatie /e3iar/, coerece/, 8or/op/, tecica3eeti/, a- traii cour/e/ locally or abroa-4 #roi-e-, Tat te operatio/ o te oice cocere- are oa-er/ely aecte-.

*ART. 2+. Applicatio. A applicat or 3e3ber/ip /all be -ee3e- a 3e3ber ater approal o i/3e3ber/ip by te boar- o -irector/ a- /all e>erci/e te rit/ o 3e3ber ater ai 3a-e /ucpay3et/ to te cooperatie i re/pect to 3e3ber/ip or ac=uire- itere/t i te cooperatie a/ 3ay bepre/cribe- i te byla8/. I ca/e 3e3ber/ip i/ reu/e- or -eie- by te boar- o -irector/, a appeal 3ay be3a-e to te eeral a//e3bly a- te latterB/ -eci/io /all be ial. For ti/ purpo/e, te eeral a//e3bly3ay opt to create a appeal a- rieace co33ittee, te 3e3ber/ o 8ic /all /ere or a perio- o oe

?1@ year a- /all -eci-e appeal/ o 3e3ber/ip applicatio 8iti tirty ?0@ -ay/ upo receipt tereo. I teco33ittee ail/ to -eci-e 8iti te pre/cribe- perio-, te appeal i/ -ee3e- approe- i aor o te applicat.

*ART. 29. %iability o Me3ber/. A 3e3ber /all be liable or te -ebt/ o te cooperatie to te e>tet o i/cotributio to te /are capital o te cooperatie.

*ART. 0. Ter3iatio o Me3ber/ip. ?1@ A 3e3ber o a cooperatie 3ay, or ay ali- rea/o, 8it-ra8 i/3e3ber/ip ro3 te cooperatie by ii a /i>ty ?0@ -ay otice to te boar- o -irector/. &ub;ect to tebyla8/ o te cooperatie, te 8it-ra8i 3e3ber /all be etitle- to a reu- o i/ /are capital cotributioa- all oter itere/t/ i te cooperatie4 #roi-e-, Tat /uc u- /all ot be 3a-e i upo /uc pay3et tealue o te a//et/ o te cooperatie 8oul- be le// ta te areate a3out o it/ -ebt/ a- liabilitie/e>clu/ie o i/ /are capital cotributio.

*?2@ Te -eat or i/aity o a 3e3ber i a pri3ary cooperatie, a- te i/olecy or -i//olutio o a 3e3beri a /eco-ary or tertiary cooperatie 3ay be co/i-ere- ali- rou-/ or ter3iatio o 3e3ber/ip4#roi-e-, Tat i ca/e o -eat or i/aity o a araria reor3 beeiciary:3e3ber o a cooperatie, tee>t:o:i 3ay a//u3e te -utie/ a- re/po/ibilitie/ o te oriial 3e3ber

*?@ Me3ber/ip i te cooperatie 3ay be ter3iate- by a ote o te 3a;ority o all te 3e3ber/ o teboar- o -irector/ or ay o te ollo8i cau/e/4

*?a@ )e a 3e3ber a/ ot patroi


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te pre/cribe- perio-, te appeal i/ -ee3e- approe- i aor o te 3e3ber. #e-i a -eci/io by teeeral a//e3bly, te 3e3ber/ip re3ai/ i orce.

*ART. 1. Reu- o Itere/t/. All /u3/ co3pute- i accor-ace 8it te byla8/ to be -ue ro3 a cooperatieto a or3er 3e3ber /all be pai- to i3 eiter by te cooperatie or by te approe- tra/eree, a/ te ca/e3ay be, i accor-ace 8it ti/ Co-e.*

&ec. 6. Article/ , 6, 5, , 7, +, 9, 60, 62, 62, 6, 66, 65, 6, 67, 6+, 69, 50 a- 51 o Capter I$ o

A-3ii/tratio o te /a3e Co-e are ereby reu3bere- a- a3e-e- to rea-, a/ ollo8/4

C!A#TER I$ADMINI&TRATI"N

*ART. 2. Co3po/itio o te eeral A//e3bly. Te eeral a//e3bly /all be co3po/e- o /uc 3e3ber/8o are etitle- to ote u-er te article/ o cooperatio a- byla8/ o te cooperatie.

*ART. 2. #o8er/ o te eeral A//e3bly. Te eeral a//e3bly /all be co3po/e- o /uc 3e3ber/ 8oare etitle- to ote u-er te article/ o cooperatio a- byla8/ o te cooperatie.

*ART. . #o8er/ o te eeral A//e3bly. Te eeral a//e3bly /all be te ie/t policy:3ai bo-y o

te cooperatie a- /all e>erci/e /uc po8er/ a/ are /tate- i ti/ Co-e, i te article/ o cooperatio a- ite byla8/ o te cooperatie. Te eeral a//e3bly /all ae te ollo8i e>clu/ie po8er/ 8ic caotbe -eleate4

*?1@ To -eter3ie a- approe a3e-3et/ to te article/ o cooperatio a- byla8/

*?2@ To elect or appoit te 3e3ber/ o te boar- o -irector/, a- to re3oe te3 or cau/e. !o8eer, i teca/e o te electric cooperatie/ rei/tere- u-er ti/ Co-e, electio o te 3e3ber/ o te boar- /all be el-i accor-ace 8it it/ byla8/ or electio ui-elie o /uc electric cooperatie a-

*?@ To approe -eelop3etal pla/ o te cooperatie.

*&ub;ect to /uc oter proi/io/ o ti/ Co-e a- oly or purpo/e/ o pro3pt a- itelliet -eci/io:3ai,te eeral a//e3bly 3ay be a tree:ourt/ ?G6@ ote o all it/ 3e3ber/ 8it oti rit/, pre/et a-co/tituti a =uoru3, -eleate /o3e o it/ po8er/ to a /3aller bo-y o te cooperatie. Te/e po8er/ /allbe eu3erate- u-er te byla8/ o te cooperatie.

*ART. 6. Meeti/. ?1@ A reular 3eeti /all be el- aually by te eeral a//e3bly o a -ate i>e- ite byla8/, or i ot /o i>e-, o ay -ate- 8iti iety ?90@ -ay/ ater te clo/e o eac i/cal year4 #roi-e-,Tat otice o reular 3eeti/ /all be /et i 8riti, by po/ti or publicatio, or trou oter electroic3ea/ to all 3e3ber/ o recor-.

*?2@ )eeer ece//ary, a /pecial 3eeti o te eeral a//e3bly 3ay be calle- at ay ti3e by a 3a;orityote o te boar- o -irector/ or a/ proi-e- or i te byla8/4 #roi-e-, Tat a otice i 8riti /all be /eoe ?1@ 8ee prior to te 3eeti to all 3e3ber/ 8o are etitle- to ote. !o8eer, a /pecial 3eeti /all becalle- by te boar- o -irector/ ater co3pliace 8it te re=uire- otice 8iti ro3 at lea/t te per cetu3?10H@ o te total 3e3ber/ 8o re etitle- to ote to tra/act /peciic bu/ie// coere- by te call.

*I te boar- ail/ to call a reular or a /pecial 3eeti 8iti te ie perio-, te Autority, upo petitio ote per cetu3 ?10H@ o all te 3e3ber/ o te cooperatie 8o are etitle- to ote, a- or oo- cau/e/o8, /all i//ue a or-er to te petitioer/ -irecti te3 to call a 3eeti o te eeral a//e3bly by iiproper otice a/ re=uire- i ti/ Co-e or i te byla8/

*?@ I te ca/e o a e8ly approe- cooperatie, a /pecial eeral a//e3bly /all be calle-, a/ ar a/practicable, 8iti iety ?90@ -ay/ ro3 /uc approal


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*?6@ Te Autority 3ay call a /pecial 3eeti o te cooperatie or te purpo/e o reporti to te 3e3ber/te re/ult o ay e>a3iatio or oter ie/tiatio o te cooperatie aair/ a-

*?5@ Notice o ay 3eeti 3ay be 8aie-, e>pre//ly or i3plie-ly, by ay 3e3ber.

*ART. 5. uoru3. A =uoru3 /all co/i/t o at lea/t t8ety:ie per cetu3 ?25H@ o all te 3e3ber/ etitle-to ote. I te ca/e o cooperatie ba/, te =uoru3 /all be a/ proi-e- i Article 99 o ti/ Co-e. I teca/e o electric cooperatie/ rei/tere- u-er ti/ Co-e, a =uoru3, ule// oter8i/e proi-e- i te byla8//all co/i/t o ie per cetu3 ?5H@ o all te 3e3ber/ etitle- to ote.

*ART. . $oti &y/te3. Eac 3e3ber o a pri3ary cooperatie /all ae oly oe ?1@ ote. I te ca/e o3e3ber/ o /eco-ary or tertiary cooperatie/, tey /all ae oe ?1@ ba/ic ote a- a/ 3ay icetie ote/a/ proi-e- or i te byla8/ but ot e>cee- ie ?5@ ote/. Te ote/ ca/t by te -eleate/ /all be -ee3e-a/ ote/ ca/t by te 3e3ber/ tereo.

*!o8eer, te byla8/ o a cooperatie oter ta a pri3ary 3ay proi-e or oti by pro>y. $oti by pro>y3ea/ allo8i a -eleate o a cooperatie to repre/et or ote i beal o aoter -eleate o te /a3ecooperatie.

*ART. 7. Co3po/itio a- Ter3 o te 'oar- o Director/. le// oter8i/e proi-e- i te byla8/, te-irectio a- 3aae3et o te aair/ o a cooperatie /all be e/te- i a boar- o -irector/ 8ic /all be

co3po/e- o ot le// tat ie ?5@ or 3ore ta itee ?15@ 3e3ber/ electe- by te eeral a//e3bly or ater3 o t8o ?2@ year/ a- /all ol- oice util teir /ucce//or/ are -uly electe- a =ualiie-, or util -ulyre3oe- or cau/e-.

*ART. +. #o8er/ o te 'oar- o Director/. Te boar- o -irector/ /all be re/po/ible or te /trateicplai, -irectio:/etti a- policy:or3ulatio actiitie/ o te cooperatie/.

*ART. 9. Director/. ?1@ Ay 3e3ber o a cooperatie 8o u-er te byla8/ o te cooperatie, a/ te rit toote a- 8o po//e//e/ all te =ualiicatio/ a- oe o te -i/=ualiicatio/ proi-e- i te la8/ or byla8//all be eliible or electio a/ -irector.

*?2@ Te cooperatie 3ay, by re/olutio o it/ boar- o -irector/, a-3it a/ -irector/, or co33ittee 3e3ber oe

appoite- by ay iaci i/titutio ro3 8ic te cooperatie receie- iacial a//i/tace /olely toproi-e tecical o8le-e ot aailable 8iti it/ 3e3ber/ip. &uc -irector or co33ittee 3e3ber ot be a3e3ber o te cooperatie a- /all ae o po8er/, rit/, or re/po/ibilitie/ e>cept to proi-e- tecicaa//i/tace a/ re=uire- by te cooperatie.

*?@ Te 3e3ber/ o te boar- o -irector/ /all ot ol- ay oter po/itio -irectly iole- i te -ay to -ayoperatio a- 3aae3et o te cooperatie.

*?6@ Ay per/o eae- i a bu/ie// /i3ilar to tat o te cooperatie or 8o i ay 8ay a/ a colict oitere/t 8it it, i/ -i/=ualiie- ro3 electio a/ a -irector o /ai- cooperatie.

*ART. 60. Meeti o te 'oar- a- uoru3 Re=uire3et. ?1@ I te ca/e o pri3ary cooperatie/, reular3eeti/ o te boar- o -irector/ /all be el- at lea/t oce a 3ot.

*?2@ &pecial 3eeti/ o te boar- o -irector/ 3ay be el- at ay ti3e upo te call o te cairper/o or a3a;ority o te 3e3ber/ o te boar-4 #roi-e-, Tat 8ritte otice/ o te 3eeti /peciyi te ae-a ote /pecial 3eeti /all be ie to all 3e3ber/ o te boar- at lea/t oe ?1@ 8ee beore te /ai- 3eeti.

*?@ A 3a;ority o te 3e3ber/ o te 'oar- /all co/titute a =uoru3 or te co-uct o bu/ie//, ule// tebyla8/ proe- oter8i/e.

*?6@ Director/ caot atte- or ote by pro>y at boar- 3eeti/.

*ART. 61. $acacy i te 'oar- o Director/. Ay acacy i te boar- o -irector/, oter ta by e>piratio oter3, 3ay be ille- by te ote o at lea/t a 3a;ority o te re3aii -irector/, i /till co/tituti a =uoru3


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15/41

*ART. 67. Deali/ o Director/, "icer/, or Co33ittee Me3ber/. A cotract etere- ito by te cooperatie8it oe ?1@ or 3ore o it/ -irector/, oicer/, a- co33ittee 3e3ber/ i/ oi-able, at te optio o tecooperatie, ule// all te ollo8i co-itio/ are pre/et.

*?1@ Tat te pre/ece o /uc -irector i te boar- 3eeti 8erei cotract 8a/ approe- 8a/ oece//ary to co/titute a =uoru3 or /uc 3eeti

*?2@ Tat te ote o /uc -irector 8a/ ot ece//ary or te approal o te cotract

*?@ Tat te cotract i/ air a- rea/oable u-er te circu3/tace/ a-

*?6@ Tat i te ca/e o a oicer or co33ittee 3e3ber, te cotract 8it te oicer or co33ittee 3e3ber a/bee preiou/ly autoripecte- to a-er/ely aect te operatio a- iability o te cooperatie, /all beel-4

*?a@ %iable to co3pe/ate te cooperatie or te -irect lo//e/ /uere- by te cooperatie a/ a re/ult o teilleal u/e o ior3atio a-

*?b@ Accoutable to te cooperatie or ay -irect beeit or a-atae receie- or yet to be receie- by i3 ori/ a//ociate, a/ a re/ult o te tra/actio.

*?2@ Te cooperatie /all tae te ece//ary /tep/ to eorce te liabilitie/ -e/cribe- i /ub/ectio ?a@

*ART. 50. Re3oal. All co3plait/ or te re3oal o ay electe- oicer /all be ile- 8it te boar- o-irector/. &uc oicer /all be ie te opportuity to be ear-. Ma;ority o te boar- o -irector/ 3ay placete oicer cocere- u-er preetie /u/pe/io pe-i te re/olutio o te ie/tiatio. po i-i oa pri3a acie ei-ece o uilt, te boar- /all pre/et it/ reco33e-atio or re3oal to te eerala//e3bly.

*A electie oicer 3ay be re3oe- by tree ourt/ ?G6@ ote/ o te reular 3e3ber/ pre/et a-co/tituti a =uoru3, i a reular or /pecial eeral a//e3bly 3eeti calle- or te purpo/e. Te oicecocere- /all be ie a opportuity to be ear- at /ai- a//e3bly.

&ec. 5. Article/ 52, 5, 56, 55, 5, 57, 5+, 59, 0, 1, 2 a- o Capter $ o Re/po/ibilitie/, Rit/ a-#riilee/ o Cooperatie/ o te /a3e Co-e are ereby reu3bere- a- a3e-e- to rea-, a/ ollo8/4

C!A#TER $RE"N&I'I%ITIE&, RI!T& AND #RI$I%EE& "F C""#ERATI$E

*ART. 51. A--re//. Eery cooperatie /all ae a oicial po/tal a--re// to 8ic all otice/ a-co33uicatio/ /all be /et. &uc a--re// a- eery cae tereo /all be rei/tere- 8it te Autority.


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*ART. 52. 'oo/ to be (ept "pe. ?1@ Eery cooperatie /all ae te ollo8i -ocu3et/ rea-y a-acce//ible to it/ 3e3ber/ a- repre/etatie/ o te Autority or i/pectio -uri rea/oable oice our/ atit/ oicial a--re//4

*?a@ A copy o ti/ Co-e a- all oter la8/ pertaii to cooperatie/

*?b@ A copy o te reulatio/ o te Autority

*?c@ A copy o te article/ o cooperatio a- byla8/ o te cooperatie

*?-@ A rei/ter o 3e3ber/

*?e@ Te boo/ o te 3iute/ o te 3eeti/ o te eeral a//e3bly, boar- o -irector/ a- co33ittee

*?@ &are boo/, 8ere applicable

*?@ Fiacial /tate3et a-

*?@ &uc oter -ocu3et/ a/ 3ay be pre/cribe- by la8/ or te byla8/.

*?2@ Te accoutat or te booeeper o te cooperatie /all be re/po/ible or te 3aiteace o te

cooperatie i accor-ace 8it eerally accepte- accouti practice/. !e /all al/o be re/po/ible or tepro-uctio o te /a3e at te ti3e o au-it or i/pectio.

*Te au-it co33ittee /all be re/po/ible or te cotiuou/ a- perio-ic reie8 o te boo/ a- recor-/ oaccout to e/ure tat te/e are i accor-ace 8it eerally accepte- accouti practice/. !e /all al/o bere/po/ible or te pro-uctio o te /a3e at te ti3e o au-it or i/pectio.

*?@ Eac cooperatie /all 3aitai recor-/ o accout/ /uc tat te true a- correct co-itio a- tere/ult/ o te operatio o te cooperatie 3ay be a/certaie- terero3 at ay ti3e. Te iacial /tate3et/au-ite- accor-i to eerally accepte- au-iti /ta-ar-/, priciple/ a- practice/, /all be publi/e-aually a- /all be ept po/te- i a co/picuou/ place i te pricipal oice o te cooperatie.

*?6@ &ub;ect to te pertiet proi/io/ o te Natioal Iteral Reeue Co-e a- oter la8/, a cooperatie3ay -i/po/e by 8ay o buri or oter 3eto- o co3plete -e/tructio ay -ocu3et, recor- or boopertaii to it/ iacial a- oiacial operatio/ 8ic are alrea-y 3ore ta ie ?5@ year/ ol- e>ceptto/e relati to tra/actio/ 8ic are te /ub;ect o ciil, cri3ial a- a-3ii/tratie procee-i/. Aietory o te au-ite- -ocu3et/, recor-/ a- boo/ to be -i/po/e- o /all be -ra8 up a- certiie- to byte boar- /ecretary a- te cair3a o te au-it co33ittee a- pre/ete- to te boar- o -irector/ 8ic3ay tereupo approe te -i/po/itio o /ai- recor-/.

*ART. 5. Report/. ?1@ Eery cooperatie /all -ra8 up reular report/ o it/ prora3 o actiitie/, iclu-ito/e i pur/uace o teir /ocio:ciic u-ertai/, /o8i teir prore// a- aciee3et/ at te e- oeery i/cal year. Te report/ /all be 3a-e acce//ible to it/ 3e3ber/, a- copie/ tereo /all be uri/e-to all it/ 3e3ber/ or recor-. Te/e report/ /all be ile- 8it te Autority 8iti oe u-re- t8ety ?120@-ay/ ro3 te e- o te cale-ar year. Te or3 a- cotet/ o te report/ /all be a/ pre/cribe- by terule/ o te Autority. Failure to ile te re=uire- report/ /all /ub;ect te accoutable oicerG/ to ie/ a-pealtie/ a/ 3ay be pre/cribe- by te Autority, a- /all be a rou- or te reocatio o autority o tecooperatie to operate a/ /uc. Te i/cal year o eery cooperatie /all be te cale-ar year e>cept a/ 3aybe oter8i/e proi-e- i te byla8/.

*?2@ I a cooperatie ail/ to 3ae, publi/ a- ile te report/ re=uire- erei, or ail/ to iclu-e terei ay3atter re=uire- by te Co-e, te Autority /all, 8iti itee ?15@ -ay/ ro3 te e>piratio o te pre/cribe-perio-, /e- /uc cooperatie a 8ritte otice, /tati it/ o:co3pliace a- te co33e/urate ie/ a-pealtie/ tat 8ill be i3po/e- util /uc ti3e tat te cooperatie a/ co3plie- 8it te re=uire3et/.

*ART. 56. Rei/ter o Me3ber/ a/ #ri3a Facie Ei-ece. Ay rei/ter or li/t o 3e3ber/ /are/ ept by ayrei/tere- cooperatie /all be pri3a acie ei-ece o te ollo8i particular/ etere- terei4


17/41

*?1@ Te -ate o 8ic te a3e o ay per/o 8a/ etere- i /uc rei/ter or li/t o 3e3ber a-

*?2@ Te -ate o 8ic ay /uc per/o cea/e- to be a 3e3ber.

*ART. 55. #robatie $alue o Certiie- Copie/ o Etrie/. ?1@ A copy o ay etry i ay boo, rei/ter or li/reularly ept i te cour/e o bu/ie// i te po//e//io o a cooperatie /all, i -uly certiie- i accor-ace

8it te rule/ o ei-ece, be a-3i//ible a/ ei-ece o te e>i/tece o etry a- pri3a acie ei-ece o te3atter/ a- tra/actio/ terei recor-e-.

*?2@ No per/o or a cooperatie i/ po//e//io o te boo/ o /uc cooperatie /all, i ay leal procee-i/to 8ic te cooperatie i/ ot a party, be co3pelle- to pro-uce ay o te boo/ o te cooperatie, tecotet/ o 8ic ca be proe- a- te 3atter/, tra/actio/ a- accout/ terei recor-e-, ule// by or-ero a co3petet court.

*ART. 5. 'o-i o Accoutable "icer/. Eery -irector, oicer, a- e3ployee a-li u-/, /ecuritie/ orproperty o beal o ay cooperatie /all be coere- by a /urety bo- to be i//ue- or a -uly rei/tere-i/urace or bo-i co3pay or te aitul peror3ace o teir re/pectie -utie/ a- obliatio/. Teboar- o -irector/ /all -eter3ie te a-e=uacy o /uc bo-/.

*po te ili o te applicatio or rei/tratio o a cooperatie, te bo-/ o te accoutable oicer/ /all

be re=uire- by te Autority. &uc bo-/ /all be ree8e- 3aually a- te Autority /all accor-ily beior3e- o /uc ree8al.

*ART. 57. #reerece o Clai3/. ?1@ Not8it/ta-i te proi/io/ o e>i/ti la8/, rule/ a- reulatio/ tote cotrary, but /ub;ect to te prior clai3 o te Autority, ay -ebt -ue to te cooperatie ro3 te 3e3ber/all co/titute a ir/t lie upo ay ra8 3aterial/, pro-uctio, iput/, a- pro-uct/ pro-uce- or ay la-,buil-i, acilitie/, e=uip3et, oo-/ or /erice/ ac=uire- a- el-, by /uc 3e3ber trou te procee-/ ote loa or cre-it rate- by te cooperatie to i3 or a/ lo a/ te /a3e i/ ot ully pai-.

*?2@ No property or itere/t o property 8ic i/ /ub;ect to a lie u-er pararap ?1@ /all be /ol- orcoeye- to tir- partie/ 8itout te prior per3i//io o te cooperatie. Te lie upo te property or itere/t/all cotiue to e>it ee ater te /ale or coeyace tereo util /uc lie a/ bee -uly e>tiui/e-.

*?@ Not8it/ta-i te proi/io/ o ay la8 to te cotrary, ay /ale or coeyace 3a-e i cotraetioo pararap ?2@ ereo /all be oi-.

*ART. 5+. I/tru3et or &alary or )ae De-uctio. ?1@ A 3e3ber o a cooperatie 3ay, ot8it/ta-i teproi/io/ o e>i/ti la8/ to te cotrary, e>ecute a i/tru3et i aor o te cooperatie autoriecutio o /uc i/tru3et a- a/ 3ay be re=uire- by te cooperatie cotaie- i a 8rittere=ue/t, te e3ployer /all 3ae te -e-uctio i accor-ace 8it te aree3et a- -e-uctio iaccor-ace 8it te aree3et a- re3it ort8it te a3out /o -e-ucte- 8iti te ?10@ -ay/ ater te e-o te payroll 3ot to te cooperatie. Te e3ployer /all 3ae te -e-uctio or a/ lo a/ /uc -ebt ooter -e3a- re3ai/ upai- by te e3ployee.

*?@ Te ter3 *e3ployer* a/ u/e- i ti/ article /all iclu-e all priate ir3/ a- te atioal a- locaoer3et/ a- oer3et:o8e- or cotrolle- corporatio/ 8o ae u-er teir e3ployer a 3e3ber o acooperatie a- ae aree- to carry out te ter3/ o te i/tru3et 3etioe- i pararap/ ?1@ a- ?2@ oti/ article.

*?6@ Te proi/io/ o ti/ article /all apply to all /i3ilar aree3et/ reerre- to i pararap ?1@ a- 8ereeorce- prior to te approal o ti/ Co-e.


18/41

*?5@ Not8it/ta-i te proi/io/ o e>i/ti la8/ to te cotrary, te re/po/ibilitie/ o te e3ployer a//tate- i pararap/ ?1@ a- ?2@ o ti/ article/ /all be 3a-atory4 #roi-e-, Tat i te ca/e o priatee3ployer, te actual a- rea/oable co/t -e-ucti a- re3itti 3aybe collecte-.

*ART. 59. #ri3ary %ie. : Not8it/ta-i te proi/io o ay la8 8it te cotrary, a cooperatie /all aepri3ary lie upo te capital, -epo/it/ or itere/t o a 3e3ber or ay -ebt -ue to te cooperatie ro3 /uc a3e3ber.

*ART. 0. Ta> Treat3et o Cooperatie. : Duly rei/tere- cooperatie/ u-er ti/ Co-e 8ic -o ot tra/act

ay bu/ie// 8it o:3e3ber/ or te eeral public /all ot be /ub;ect to ay ta>e/ a- ee/ i3po/e-u-er te iteral reeue la8/ a- oter ta> la8/. Cooperatie/ ot alli u-er ti/ article /all beoere- by te /uccee-i /ectio.

*ART.1. Ta> a- "ter E>e3ptio/. Cooperatie/ tra/acti bu/ie// 8it bot 3e3ber/ a- o:3e3ber/ /all ot be /ub;ecte- to ta> o teir tra/actio/ 8it 3e3ber/. I relatio to ti/, te tra/actio/o 3e3ber/ 8it te cooperatie /all ot be /ub;ect to ay ta>e/ a- ee/, iclu-i ot li3ite- to ial ta>e/o 3e3ber/B -epo/it/ a- -ocu3etary ta>. Not8it/ta-i te proi/io/ o ay la8 or reulatio to tecotrary, /uc cooperatie/ -eali 8it o3e3ber/ /all e;oy te ollo8i ta> e>e3ptio/4

*?1@ Cooperatie/ 8it accu3ulate- re/ere/ a- u-ii-e- et /ai/ o ot 3ore ta Te 3illio pe/o/?#10,000,000.00@ /all be e>e3pt ro3 all atioal, city, proicial, 3uicipal or baraay ta>e/ o 8atee

a3e a- ature. &uc cooperatie/ /all be e>e3pt ro3 cu/to3/ -utie/, a-ace /ale/ or co3pe/atita>e/ o teir i3portatio o 3acierie/, e=uip3et a- /pare part/ u/e- by te3 a- 8ic are otaailable locally a certiie- by te -epart3et o tra-e a- i-u/try ?DTI@. All ta> ree i3portatio/ /all ot be/ol- or te beeicial o8er/ip tereo be tra/erre- to ay per/o util ater ie ?5@ year/, oter8i/e, tecooperatie a- te tra/eree or a//iee /all be /oli-arily liable to pay t8ice te a3out o te i3po/e- ta>a- G or -utie/.

*?2@ Cooperatie/ 8it accu3ulate- re/ere/ a- -ii-e- et /ai/ o 3ore ta Te 3illio pe/o/?#10,000,000.00@ /all ee te ollo8i ta>e/ at te ull rate4

*?a@ Ico3e Ta> : " te a3out allocate- or itere/t o capital/4 #roi-e-, Tat te /a3e ta> i/ otco/e=uetly i3po/e- o itere/t i-ii-ually receie- by 3e3ber/4 #roi-e-, urter, Tat cooperatie/

rear-le// o cla//iicatio, are e>e3pt ico3e ta> ro3 te -ate o rei/tratio 8it te Autority*?b@ $alue:A--e- Ta> " tra/actio/ 8it o:3e3ber/4 #roi-e-, o8eer, Tat cooperatie/ -ulyrei/tere- 8it te Autority are e>e3pt ro3 te pay3et o alue:a--e- ta> /ub;ect to &ec. 109, /ub:/ectio/ %, M a- N o Republic Act No. 97, te Natioal Iteral Reeue Co-e, a/ a3e-e-4 #roi-e-,Tat te e>e3pt tra/actio u-er &ec. 109 ?%@ /all iclu-e /ale/ 3a-e by cooperatie/ -uly rei/tere- 8itte Autority oraie/ ule// oter8i/e proi-e- erei a-

*?-@ Doatio/ to caritable, re/earc a- e-ucatioal i/titutio/ a- reie/t3et to /ocioecoo3ic pro;ect/8iti te area o operatio o te cooperatie 3ay be ta> -e-uctible.

*?@ All cooperatie/, rear-le// o te a3out o accu3ulate- re/ere/ a- u-ii-e- et /ai/ /all bee>e3pt ro3 pay3et o local ta>e/ a- ta>e/ o tra/actio/ 8it ba/ a- i/urace co3paie/4 #roi-e-Tat all /ale/ or /erice/ re-ere- or o:3e3ber/ /all be /ub;ect to te applicable percetae ta>e/ /ale/3a-e by pro-ucer/, 3areti or /erice cooperatie/4 #roi-e- urter, Tat oti i ti/ article /alpreclu-e te e>a3iatio o te boo/ o accout/ or oter accouti recor-/ o te cooperatie by -ulyautori purpo/e/ oly, ater preiou/ autori


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*?6@ I area/ 8ere tere are o aailable otarie/ public, te ;u-e, e>erci/i i/ e> oicio capacity a/ otarypublic, /all re-er /erice, ree o care, to ay per/o or roup o per/o/ re=uiri te a-3ii/tratio ooat or te aco8le-3et o article/ o cooperatio a- i/tru3et/ o loa ro3 cooperatie/ oe>cee-i Fie !u-re- Tou/a- #e/o/ ?#500,000.00@.

*?5@ Ay rei/ter o -ee-/ /all accept or rei/tratio, ree o care, ay i/tru3et relatie to a loa 3a-eu-er ti/ Co-e 8ic -oe/ ot e>cee- T8o !u-re- Fity Tou/a- #e/o/ ?#250,000.00@ or te -ee-/ otitle o ay property ac=uire- by te cooperatie or ay paper or -ocu3et -ra8 i coectio 8it ay actio

brout by te cooperatie or 8it ay court ;u-3et re-ere- i it/ aor or ay i/tru3et relatie to a bo-o ay accoutable oicer o a cooperatie or te aitul peror3ace o i/ -utie/ a- obliatio/.

*?@ Cooperatie/ /all be e>e3pt ro3 te pay3et o all court a- /eriB/ ee/ payable to te #ilippieoer3et or a- i coectio 8it all actio/ brout u-er ti/ Co-e, or 8ere /uc actio/ i/ broutby te Autority beore te court, to eorce te pay3et o obliatio/ cotracte- i aor o te cooperatie.

*?7@ All cooperatie/ /all be e>e3pt ro3 putti up a bo- or brii a appeal aai/t te -eci/io o aierior court or or /eei to /et a/i-e ay tir- party clai34 #roi-e-, Tat a certiicatio o te Autority/o8i tat te et a//et/ o te cooperatie are i e>ce// o te a3out o te bo- re=uire- by te court i/i3ilar ca/e/ /all be accepte- by te court a/ a /uiciet bo-.

*?+@ Ay /ecurity i//ue- by cooperatie/ /all be e>e3pt ro3 te proi/io/ o te &ecuritie/ Act proi-e-/uc /ecurity /all ot be /peculatie.

*ART. 2. #riilee/ o Cooperatie/. Cooperatie/ rei/tere- u-er ti/ Co-e, ot8it/ta-i te proi/io/o ay la8 to te cotrary, be al/o accor-e- te ollo8i priilee/4

*?1@ Cooperatie/ /all e;oy te priilee o -epo/iti teir /eale- ca/ bo>e/ or cotaier/, -ocu3et/ oray aluable paper/ i te /ae/ o te 3uicipal or city trea/urer/ a- oter oer3et oice/ ree ocare, a- te cu/to-ia o /uc article/ /all i//ue a receipt aco8le-i te article/ receie- -uly

8ite//e- by aoter per/o

*?2@ Cooperatie/ oraii/t, te preeretial rit to /upply oer3et i/titutio/ a-aecie/ rice, cor a- oter rai/, i/ a- oter 3arie pro-uct/, 3eat, e/, 3il, eetable/, tobaccoa- oter aricultural co33o-itie/ pro-uce- by teir 3e3ber/ /all be rate- to te cooperatie/ cocere-

*?5@ #reeretial treat3et i te allocatio o ertili


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*?+@ Cooperatie/ eae- i cre-it /erice/ a-Gor e-eratio/ /all be etitle- to loa/ cre-it lie/re-i/couti o teir loa ote/, a- oter eliible paper/ 8it te Deelop3et 'a o te #ilippie/, te%a- 'a o te #ilippie/ a- oter iacial i/titutio/ e>cept te 'ao &etral #ilipia/ ?'@

*Te #ilippie Depo/it I/urace Corporatio ?#DIC@ a- oter oer3et aecie/, oer3et:o8e-a- cotrolle- corporatio/ a- oer3et iacial i/titutio/ /all proi-e tecical a//i/tace torei/tere- atioal e-eratio/ a- uio/ o cooperatie/ 8ic ae /iiicat eae3et i /ai/ a-cre-it operatio/ i or-er or te/e e-eratio/ a- uio/ to e/tabli/ a-Gor /trete teir o8autoo3ou/ cooperatie -epo/it i/urace /y/te3/

*?9@ A public tra/port /erice cooperatie 3ay be etitle- to iaci /upport or te ac=ui/itio a-Gor3aiteace o la- a- /ea tra/port e=uip3et, acilitie/ a- part/ trou te prora3 o te oer3etiacial i/titutio/. It /all ae te preeretial rit to te 3aae3et a- operatio o public ter3ial/a- port/ 8eter la- or /ea tra/port 8ere te cooperatie operate/ a- o /ecuri a raci/e or actieor potetial route/ or te public tra/port

*?10@ Cooperatie/ tra/acti bu/ie// 8it te oer3et o te #ilippie/ or ay o it/ politica/ub-ii/io/ or ay o it/ aecie/ or i/tru3etalitie/, iclu-i oer3et:o8e- a- cotrolle-corporatio/ /all be e>e3pt ro3 pre=ualiicatio bi--i re=uire3et/ ot8it/ta-i te proi/io/ oRepublic Act No.91+6, oter8i/e o8 a/, te oer3et #rocure3et Act

*?11@ Cooperatie /all e;oy te priilee o bei repre/ete- by te proicial or city i/cal or te "ice ote &olicitor eeral, ree o care, e>cept 8e te a-er/e party i/ te Republic o te #ilippie/

*?12@ Cooperatie/ orai


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o all te 3e3ber/ 8it oti rit/, pre/et a- co/tituti a =uoru3 at a 3eeti to be el- upo call ote -irector/4 #roi-e-, Tat te otice o ti3e, place a- ob;ect o te 3eeti /all be publi/e- or tree ?@co/ecutie 8ee/ i a e8/paper publi/e- i te place 8ere te pricipal oice o /ai- cooperatie i/locate-, or i o e8/paper i/ publi/e- i /uc place, i a e8/paper o eeral circulatio i te #ilippie/#roi-e-, urter, Tat te otice o /uc 3eeti i/ /et to eac 3e3ber o recor- eiter by rei/tere- 3ail orby per/oal -eliery at lea/t tirty ?0@ -ay/ prior to /ai- 3eeti. A copy o te re/olutio autori a -ate 8ic /all ot be le// ta tirty ?0@ or 3ore ta /i>ty ?0@ -ay/ ater te etryo te or-er. 'eore /uc -ate, a copy o te or-er /all be publi/e- at lea/t oce a 8ee or tree ?@co/ecutie 8ee/ i a e8/paper o eeral circulatio publi/e- i te 3uicipality or city 8ere tepricipal oice o te cooperatie i/ /ituate- or i te ab/ece o /uc local e8/paper, i a e8/paper o

eeral circulatio i te #ilippie/, a- a copy /all lie8i/e be po/te- or tree ?@ co/ecutie 8ee/ itree ?@ public place/ i te 3uicipality or city 8ere te cooperatieB/ oice i/ locate-.

*po e>piry o te ie ?5@ -ay otice to ile ob;ectio/, te Autority /all procee- to ear te petitio a- tryay i//ue rai/e- i te ob;ectio ile- a- i te ob;ectio i/ /uiciet a- te 3aterial alleatio/ o tepetitio are proe, it /all i//ue a or-er to -i//ole te cooperatie a- -irect te -i/po/itio o it/ a//et/ iaccor-ace 8it e>i/ti rule/ a- reulatio/. Te or-er o -i//olutio /all /et ort terei4

*?1@ Te a//et/ a- liabilitie/ o te cooperatie

*?2@ Te clai3 o ay cre-itor

*?@ Te u3ber o 3e3ber/ a-*?6@ Te ature a- e>te- o te itere/t/ o te 3e3ber/ o te cooperatie.

*ART. . Iolutary Di//olutio. A cooperatie 3ay be -i//ole- by or-er o a co3petet court ater -ueeari o te rou-/ o4

*?1@ $iolatio o ay la8, reulatio or proi/io/ o it/ byla8/ or

*?2@ I/olecy.

*ART. 7. Di//olutio by "r-er o te Autority. Te Autority 3ay /u/pe- or reoe, ater -ue otice a-eari, te certiicate o rei/tratio o a cooperatie o ay o te ollo8i rou-/4

*?1@ !ai obtaie- it/ rei/tratio by rau-

*?2@ E>i/ti or a illeal purpo/e

*?@ )illul iolatio, -e/pite otice by te Autority, o te proi/io/ o ti/ Co-e or it/ byla8/

*?6@ )illul ailure to operate o a cooperatie ba/i/ a-

*?5@ Failure to 3eet te re=uire- 3ii3u3 u3ber o 3e3ber/ i te cooperatie.


22/41

*ART. +. Di//olutio by Failure to "rai


23/41

*)ere a 3e3ber o cooperatie -ie/, i/ eir /all be etitle- to te /are/ o te -ece-et4 #roi-e-, Tatte total /are ol-i o te eir -oe/ ot e>cee- te per cetu3 ?10H@ o te /are capital o tecooperatie #roi-e-, urter, Tat te eir =ualiy a- i/ a-3itte- a/ 3e3ber/ o te cooperatie4 #roi-e-ially , Tat 8ere te eir ail/ to =ualiy a/ a 3e3ber or 8ere i/ total /are ol-i e>cee-/ te percetu3 ?10H@ o te /are capital , te /are or /are/ e>ce// 8ill reert to te cooperatie upo pay3et tote eir o te alue o /uc /are/.

*ART. 76. A//i3et o &are Capital Cotributio or Itere/t.: &ub;ect to te proi/io/ o ti/ Co-e, o3e3ber /all tra/er i/ /are/ or itere/t i te cooperatie or ay part tereo ule//.

*?1@ !e a/ el- /uc /are capital cotributio or itere/t or ot le// ta oe ?1@ year.

*?2@ Te a//i3et i/ 3a-e to te cooperatie or to a 3e3ber o te cooperatie or to a per/o 8o all/8iti te iel- o te 3e3ber/ip o te cooperatie a-

*?@ Te boar- o -irector/ a/ approe- /uc a//i3et.

*ART.75. Capital 'uil-:p.: Te byla8/ o eery cooperatie /all be proi-e- or a rea/oable a- reali/tic3e3ber capital buil-:up prora3 to allo8 te cotiui ro8t o te 3e3ber/B ie/t3et i teicooperatie a/ teir ecoo3ic co-itio/ cotiue to i3proe.

*ART.7. &are/.: Te ter3 */are* reer/ to a uit o capital i a pri3ary cooperatie te par alue o 8ic3ay be i>e- to ay iure ot 3ore ta "e tou/a- pe/o/ ?#1,000.00@. Te /are o capital o acooperatie i/ te 3oey pai- or re=uire- to be pai- or te operatio/ o te cooperatie. Te 3eto- or tei//uace o /are certiicate/ /all pre/cribe- i it/ byla8/.

*ART.77. Fie/. : Te byla8/ o a cooperatie 3ay pre/cribe a ie o upai- /ub/cribe- /are capital.#roi-e-, tat /uc ie i/ air a- rea/oable u-er te circu3/tace/.

*ART.7+. Ie/t3et o Capital. : A cooperatie 3ay ie/t it/ capital i ay o te ollo8i4

*?a@ I /are/ or -ebeture/ or /ecuritie/ o ay oter cooperatie

*?b@ I ay reputable ba i te locality, or ay cooperatie*?c@ I /ecuritie/ i//ue- or uaratee- by te oer3et

*?-@ I real /tate pri3arily or te u/e o te cooperatie or it/ 3e3ber/ or

*?e@ I ay oter 3aer autori


24/41

*?2@ !e i/ a 3e3ber i oo- /ta-i o te #ilippie I/titute o Certiie- #ublic Accoutat/ ?#IC#A@ a- i/accre-ite- by bot te 'oar- a- Accoutacy a- te Autority.

*Te /ocial au-it /all be co-ucte- by a i-epe-et /ocial au-itor accre-ite- by te Autority.

*#eror3ace a- /ocial au-it report/ 8ic cotai te i-i/ a- reco33e-atio/ o te au-itor /all be/ub3itte- to te boar- o -irector/.

*Te Autority, i co/ultatio 8it te cooperatie /ector, /all pro3ulate te rule/ a- /ta-ar-/ or te

/ocial au-it o cooperatie/.

*ART. +1. Au-it Report. Te au-itor /all /ub3it to te boar- o -irector/ a- to te au-it co33ittee teiacial au-it report 8ic /all be i accor-ace 8it te eerally accepte- au-iti /ta-ar-/ ocooperatie/ a/ ;oitly pro3ulate- by te #ilippie I/titute o Certiie- #ublic Accoutat/ ?#IC#A@ a- teAutority.

*Tereater, te boar- o -irector/ /all pre/et te co3plete au-it report to te eeral a//e3bly i it/ e>t3eeti.

*ART. +2. Noliability or Dea3atio/. Te au-itor i/ ot liable to ay per/o i a actio or -ea3atio ba/e-o ay act, -oe, or ay /tate3et 3a-e by i3 i oo- ait i coectio 8it ay 3atter e i/ autoria3ie. A 3e3ber /all ae te rit to e>a3ie te recor-/ re=uire- to be ept by tecooperatie u-er Article 52 o ti/ Co-e -uri rea/oable our/ o bu/ie// -ay/ a- e 3ay -e3a-, i

8riti, or a copy o e>cerpt/ ro3 /ai- recor-/ 8itout care e>cept te co/t o pro-uctio.

*Ay oicer o te cooperatie 8o /all reu/e to allo8 ay 3e3ber o te cooperatie to e>a3ie a- copye>cerpt/ ro3 it/ recor-/ /all be liable to /uc 3e3ber or -a3ae/ a- /all be uilty o a oe/e 8ic/all be pui/able u-er Article 160 o ti/ Co-e4 #roi-e-, Tat i /uc reu/al i/ pur/uat to a re/olutio oor-er o te boar- o -irector/, te liability u-er ti/ article /all be i3po/e- upo te -irector/ 8o ote- or/uc reu/al4 #roi-e-, urter, Tat it /all be a -ee/e to ay actio u-er ti/ article tat te 3e3be-e3a-i to e>a3ie a- copy e>cerpt/ ro3 te cooperatie recor-/ a/ i3properly u/e- ay ior3atio

/ecure- trou ay prior e>a3iatio o te recor-/ o /uc cooperatie or 8a/ ot acti i oo- ait or ora leiti3ate purpo/e i 3ai i/ -e3a-.

*ART. +6. &aety o Recor-/. Eery cooperatie /all, at it/ pricipal oice, eep a- careully pre/ere terecor-/ re=uire- by ti/ Co-e to be prepare- a- 3aitaie-. It /all tae all ece//ary precautio to preetit/ lo//, -e/tructio or al/iicatio.*

&ec. 10. Article/ + a- +7 o Capter K o Allocatio a- Di/tributio o Net &urplu/ o te /a3e Co-e areereby reu3bere- a- a3e-e- to rea-, a/ ollo8/4

C!A#TER KA%%"CATI"N AND DI&TRI'TI"N "F NET &R#%&

*ART. +5. Net &urplu/. Not8it/ta-i te proi/io/ o e>i/ti la8/, te et /urplu/ o cooperatie/ /all be-eter3ie- i accor-ace 8it it/ byla8/. Eery cooperatie /all -eter3ie it/ et /urplu/ at te clo/e oeery i/cal year a- at /uc oter ti3e/ a/ 3ay be pre/cribe- by te byla8/.

*Ay proi/io o la8 to te cotrary ot8it/ta-i, te et /urplu/ /all ot be co/true- a/ proit but a/ ae>ce// o pay3et/ 3a-e by te 3e3ber/ or te loa/ borro8e-, or te oo-/ a- /erice/ aaile- by te3ro3 te cooperatie or te -ierece o te ritul a3out -ue to te 3e3ber/ or teir pro-uct/ /ol- or/erice/ re-ere- to te cooperatie iclu-i oter ilo8/ o a//et/ re/ulti ro3 it/ oter operatiactiitie/ a- 8ic /all be -ee3e- to ae bee reture- to te3 i te /a3e i/ -i/tribute- a/ pre/cribe-erei.

*ART. +. "r-er o Di/tributio. Te et /urplu/ o eery cooperatie /all be -i/tribute- a/ ollo8/4


25/41

*?1@ A a3out or te re/ere u- 8ic /all be at lea/t te per cetu3 ?10H@ o et /urplu/4 #roi-e-,Tat, i te ir/t ie ?5@ year/ o operatio ater rei/tratio, ti/ a3out /all ot be le// ta ity per cetu3?50H@ o te et /urplu/4

*?a@ Te re/ere u- /all be u/e- or te /tability o te cooperatie a- to 3eet et lo//e/ i it/ operatio/.Te eeral a//e3bly 3ay -ecrea/e te a3out allocate- to te re/ere u- 8e te re/ere u- alrea-ye>cee-/ te /are capital.

*Ay /u3 recoere- o ite3/ preiou/ly care- to te re/ere u- /all be cre-ite- to /uc u-.

*?b@ Te re/ere u- /all ot be utilice// o te /are capital 3ay be u/e- at ayti3e or ay pro;ect tat 8oul- e>pa- teoperatio/ o te cooperatie upo te re/olutio o te eeral a//e3bly.

*?c@ po te -i//olutio o te cooperatie, te re/ere u- /all ot be -i/tribute- a3o te 3e3ber/. Teeeral a//e3bly 3ay re/ole/4

*?i@ To e/tabli/ a u/uructuary tru/t u- or te beeit o ay e-eratio or uio to 8ic te cooperatie i/ailiate- a-

*?ii@ To -oate, cotribute, or oter8i/e -i/po/e o te a3out or te beeit o te co33uity 8ere tecooperatie operate/. I te 3e3ber/ caot -eci-e upo te -i/po/al o te re/ere u-, te /a3e /all oto te e-eratio or uio to 8ic te cooperatie i/ ailiate-.

*?2@ A a3out or te e-ucatio a- traii u-, /all ot be 3ore ta te per cetu3 ?10H@ o te et/urplu/. Te byla8/ 3ay proi-e tat certai ee/ or a portio tereo be cre-ite- to /uc u-. Te u- /allproi-e or te traii, -eelop3et a- /i3ilar oter cooperatie actiitie/ eare- to8ar-/ te ro8t o tecooperatie 3oe3et4

*?a@ !al o te a3out/ tra/erre- to te e-ucatio a- traii u- aually u-er ti/ /ub/ectio /all be/pet by te cooperatie or e-ucatio a- traii purpo/e/ 8ile te oter al 3ay be re3itte- to a uio ore-eratio co/e by te cooperatie or o 8ic it i/ a 3e3ber. Te /ai- uio or e-eratio /all /ub3it to

te Autority a- to it/ cotributi cooperatie/ te ollo8i /ce-ule/4*?i@ %i/t o cooperatie/ 8ic ae re3itte- teir re/pectie Cooperatie E-ucatio a- Traii Fu-/?CETF@

*?ii@ 'u/ie// co/ultacy a//i/tace to iclu-e te ature a- co/t a-

*?iii@ "ter traii actiitie/ u-ertae /peciyi terei te ature, participat/ a- co/t o eac actiity.

*?b@ po te -i//olutio o te cooperatie, te ue>pe-e- balace o te e-ucatio a- traii u-appertaii to te cooperatie /all be cre-ite- to te cooperatie e-ucatio a- traii u- o te co/euio or e-eratio.

*?@ A a3out or te co33uity -eelop3et u-, 8ic /all ot be le// ta tree per cetu3 ?H@ o teet /urplu/. Te co33uity -eelop3et u- /all be u/e- or pro;ect/ or actiitie/ tat 8ill beeit teco33uity 8ere te cooperatie operate/.

*?6@ A optioal u-, a la- a- buil-i, a- ay oter ece//ary u- te total o 8ic /all ot e>cee-/ee per cetu3 ?7H@.

*?5@ Te re3aii et /urplu/ /all be 3a-e aailable to te 3e3ber/ i te or3 o itere/t o /are capitaot to e>cee- te or3al rate o retur our ie/t3et/ a- patroae reu-/4 #roi-e-, Tat ay a3outre3aii ater te allo8able itere/t a- te patroae reu- ae bee -e-ucte- /all be cre-ite- to tere/ere u-.


26/41

*Te /u3 allocate- or patroae reu-/ /all be 3a-e aailable at te /a3e rate to all patro/ o tecooperatie i proportio to teir i-ii-ual patroae4 #roi-e-, Tat4

*?a@ I te ca/e o a 3e3ber patro 8it pai-:up /are capital cotributio, i/ proportioate a3out opatroae reu- /all be pai- to i3 ule// e aree/ to cre-it te a3out to i/ accout a/ a--itioal /arecapital cotributio

*?b@ I te ca/e o a 3e3ber patro 8it upai- /are capital cotributio, i/ proportioate a3out opatroae reu- /all be cre-ite- to i/ accout util i/ accout util i/ /are capital cotributio a/ bee

ully pai-

*?c@ I te ca/e o a o:3e3ber patro, i/ proportioate a3out o patroae reu- /all be /et a/i-e i aeeral u- or /uc patro/ a- /all be allocate- to i-ii-ual o:3e3ber patro/ oly upo re=ue/t a-pre/etatio o ei-ece o te a3out o i/ patroae. Te a3out /o allocate- /all be cre-ite- to /ucpatro to8ar- pay3et o te 3ii3u3 capital cotributio or 3e3ber/ip. )e a /u3 e=ual to ti/ a3outa/ accu3ulate- at ay ti3e 8iti a perio- /peciie- i te byla8/, /uc patro /all be -ee3e- a- beco3ea 3e3ber o te cooperatie i e /o aree/ or re=ue/t/ a- co3plie/ 8it te proi/io/ o te byla8/ oa-3i//io to 3e3ber/ip a-

*?-@ I 8iti ay perio- o ti3e /peciie- i te byla8/, ay /ub/criber 8o a/ ot ully pai- i/ /ub/cribe-/are capital or ay o:3e3ber patro 8o a/ accu3ulate- te /u3 ece//ary or 3e3ber/ip but 8o

-oe/ ot re=ue/t or aree to beco3e a 3e3ber or ail/ to co3ply 8it te proi/io/ o te byla8/ ora-3i//io to 3e3ber/ip, te a3out /o accu3ulate- or cre-ite- to teir accout toeter 8it ay part o teeeral u- or o3e3ber patro/ /all be cre-ite- to te re/ere u- or to te e-ucatio a- traii u-o te cooperatie, at te optio o te cooperatie.*

&ec. 11. Article/ ++, +9, 90, 91, 92, 9, 96 a- 95 o Capter KI o te &pecial #roi/io/ Relati to ArariaReor3 Cooperatie/ o te /a3e Co-e are ereby reu3bere- retitle- a- a3e-e- to rea-, a/ ollo8/4

C!A#TER KIARARIAN REF"RM C""#ERATI$E&

*ART. +7. Coerae. Te proi/io/ o ti/ Capter /all pri3arily oer araria reor3 cooperatie/

#roi-e-, Tat te proi/io/ o te oter capter/ o ti/ Co-e /all apply /uppletorily e>cept i/oar a/ ti/Capter oter8i/e proi-e/.

*ART. ++. Deiitio a- #urpo/e. A araria reor3 cooperatie i/ oe orai


27/41

*?@ To proi-e o:or3al e-ucatio, ocatioalGtecical traii, a- lielioo- prora3/ to beeiciarie/a- 3arial ar3er/

*?7@ To act a/ co-uit/ or e>teral a//i/tace a- /erice/ to te beeiciarie/ a- 3arial ar3er/

*?+@ To u-ertae a co3pree/ie a- iterate- -eelop3et prora3 i araria reor3 a- re/ettle3etarea/ 8it /pecial cocer or te -eelop3et o aro:ba/e-, 3arie:ba/e-, a- cottae:ba/e- i-u/trie/

*?9@ To repre/et te beeiciarie/ o ay or all 3atter/ tat aect teir itere/t a-

*?10@ To u-ertae /uc oter ecoo3ic or /ocial actiitie/ a/ 3ay be ece//ary or ici-etal i te pur/uit ote oreoi purpo/e/.

*ART. +9. Cooperatie E/tate. %a-ol-i/ lie platatio/, e/tate/ or acie-a/ ac=uire- by te &tate ote beeit o te 8orer/ i accor-ace 8it te Co3pree/ie Araria Reor3 #rora3 8ic /all becollectiely o8e- by te 8orer:beeiciarie/ u-er a cooperatie /et:up.

*ART. 90. Ira/tructure. I araria reor3 a- re/ettle3et area/, te oer3et /all rat to arariareor3 cooperatie/ preeretial treat3et i te co/tructio, 3aiteace a- 3aae3et o roa-/bri-e/, caal/, 8are/, port/, re/eroir/, irriatio /y/te3/, 8ater8or/ /y/te3/, a- oter ira/tructure/

8it oer3et u-i. For ti/ purpo/e, te oer3et /all proi-e tecical a//i/tace, acilitie/ a-

e=uip3et to /uc araria reor3 cooperatie/.*ART. 91. %ea/e o #ublic %a-/. Te oer3et 3ay lea/e public la-/ to ay araria reor3 cooperatieor a perio- ot e>cee-i t8ety:ie ?25H@ year/, /ub;ect to ree8al or aoter t8ety:ie ?25@ year/ oly#roi-e-, Tat te applicatio or ree8al /all be 3a-e oe ?1@ year beore te e>piratio o te lea/e4#roi-e-, urter, Tat /uc lea/e /all be or te e>clu/ie u/e a- beeit o te beeiciarie/ a- 3arialar3er/ /ub;ect to te proi/io/ o te Co3pree/ie Araria Reor3 #rora3.

*ART. 92. #reeretial Rit. I araria reor3 area/, a araria reor3 cooperatie /all ae tepreeretial rit i te rat o raci/e a- certiicate o public coeiece a- ece//ity or te operatioo public utilitie/ a- /erice/4 #roi-e-, Tat it 3eet/ te re=uire3et/ a- co-itio/ i3po/e- by teappropriate oer3et aecy rati te raci/e or certiicate o public coeiece a- ece//ity. I

tere i/ a electric /erice proi-er i te area, it /all upo te re=ue/t o a araria reor3 cooperatie,i33e-iately proi-e electric /erice/ to te araria reor3 area/. I te electric /erice proi-er ail/ toproi-e te /erice/ re=ue/te- 8iti a perio- o oe ?1@ year, te araria reor3 cooperatie cocere- 3ayu-ertae to proi-e te electric /erice/ i te area trou it/ o8 re/ource/. All ie/t3et/ 3a-e by te/ai- araria reor3 cooperatie or te electriicatio o te araria reor3 re/ettle3et area/ /all be te/ub;ect o /ale to te electric /erice proi-er oce it tae/ o te /erice.

*ART. 9. #riilee/. &ub;ect to /uc rea/oable ter3/ a- co-itio/ a/ te Depart3et o Araria Reor3?DAR@ a- te Autority 3ay i3po/e, araria reor3 cooperatie/ 3ay be ie te e>clu/ie rit to -o ayor all o te ollo8i ecoo3ic actiitie/ i araria reor3 a- re/ettle3et area/

*?1@ &upply a- -i/tributio o co/u3er, aricultural, a=ua:cultural, a- i-u/trial oo-/, pro-uctio iput/a- ra8 3aterial/ a- /upplie/, 3aciery, e=uip3et, acilitie/ a- oter /erice/ a- re=uire3et/ o tebeeiciarie/ a- 3arial ar3er/ at rea/oable price/

*?2@ Mareti o te pro-uct/ a- /erice/ o te beeiciarie/ i local a- orei 3aret/

*?@ #roce//i o te 3e3ber/B pro-uct/ ito ii/e- co/u3er or i-u/trial oo-/ or -o3e/tic co/u3ptioor or e>port

*?6@ #roi/io o e//etial public /erice/ at co/t /uc a/ po8er, irriatio, potable 8ater, pa//eer a-Gocaro tra/portatio by la- or /ea, co33uicatio /erice/, a- public ealt a- 3e-ical care /erice/


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*?5@ Maae3et, co/eratio, a- co33ercial -eelop3et o 3arie, ore/try, 3ieral, 8ater, a- oteatural re/ource/ /ub;ect to co3pliace 8it te la8/ a- reulatio/ o eiro3etal a- ecoloicacotrol/ a-

*?@ #roi/io o iacial, tecoloical, a- oter /erice/ a- acilitie/ re=uire- by te beeiciarie/ i teir-aily lie/ a- lielioo-.

*Te oer3et /all proi-e te ece//ary iacial a- tecical a//i/tace to araria reor3cooperatie/ to eable te3 to -i/care eectiely teir purpo/e/ u-er ti/ article. Te DAR, te Autority

a- te ' /all -ra8 up a ;oit prora3 or te orai


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te eectiity o ti/ Act. &a3aa Nayo a- M(&N are ereby ie a perio- o oe ?1@ year ro3 teeectiity o ti/ Act to co3plete teir coer/io a/ cooperatie/. Cooperatie ba /all e>ert rea/oableeort/ to ior3 teir 3e3ber &a3aa Nayo a- M(&N to ially coert or to ie te otice ocoer/io 8iti te pre/cribe- perio-. po te ailure o te &a3aa Nayo a- M(&N to ially coertto a ull:ple-e- cooperatie 8iti te 3a>i3u3 perio- o oe ?1@ year, te cooperatie ba cocere- 3aycoert te co33o /are/ el- by /uc a//ociatio/ to preerre- /are/.

*?@ Te article/ o cooperatie a- byla8/ o a cooperatie ba, or ay a3e-3et tereto, /all berei/tere- 8it te Autority oly 8e acco3paie- by a certiicate o autority i//ue- by te ', u-er it/

oicial /eal.

*ART. 9+. A-3ii/tratio o Cooperatie 'a/. To 3aitai te =uality o ba 3aae3et a- accor-appropriate protectio to -epo/itor/ a- te public i eeral, te ' /all pre/cribete it a- proper=ualiicatio/ o ba -irector/ a- oicer/ or te purpo/e/ o ti/ article, ii -ue recoitio to te ui=ueature a- caracter o cooperatie ba/.

*Not8it/ta-i te proi/io/ o ti/ Co-e, te u3ber, co3putatio a- ter3 o te boar- o -irector/ /albe -eie- i te article/ o cooperatio a- byla8/ o te cooperatie ba.

*ART. 99. uoru3 a- $oti Rit/. Te =uoru3 re=uire3et or eeral a//e3bly 3eeti/, 8ete/pecial or reular, /all be oe al plu/ oe o te u3ber o oti /are/ o all te 3e3ber/ i oo-

/ta-i. I te 3eeti/ o te boar- o -irector/, 8eter /pecial or reular, te =uoru3 re=uire3et /all beoe:al plu/ oe o all te 3e3ber/ o te boar- o -irector/. Eac -irector /all oly ae oe ote.

*Not8it/ta-i te proi/io/ o ti/ Co-e to te cotrary, te =uoru3 re=uire3et or a3e-3et/ oarticle/ o cooperatio a- byla8/ /all be tree:ourt/ ?G6@ ote o all te 3e3ber/ 8it oti rit/pre/et a- co/tituti a =uoru3. All oter oti re=uire3et/ /all be a/ pre/cribe- by te '.

*Te oti rit/ o te 3e3ber/ /all be proportioate to te u3ber o teir pai-:up /are/.

*ART. 100. #o8er/, Fuctio/ a- Allie- -ertai/ o Cooperatie 'a/. A cooperatie ba /alpri3arily proi-e iacial, bai a- cre-it /erice/ to cooperatie oraii/ti la8/, ay cooperatie ba 3ay peror3 ayor all o te bai /erice/ oere- by oter type/ o ba/ /ub;ect to te prior approal o te '.

*ART. 101. Capital Re=uire3et/ o Cooperatie 'a/. ?1@ A cooperatie ba /all ae a 3ii3u3 pai-:upcapital i /uc a3out a/ 3ay be re=uire- by te '.

*Te ' 3ay pre/cribe rule/ a- reulatio/ o te type/ o /are/ a cooperatie ba 3ay i//ue, iclu-ite ter3/ tereo a- rit/ appurteat tereto to -eter3ie co3pliace 8it la8/ a- reulatio/ oericapital a- e=uity /tructure o ba/4 #roi-e-, Tat cooperatie ba/ /all i//ue par alue /are/ oly.

*?2@ Te 'arrio &ai/ Fu- ?'&F@ a- 'arrio uaratee Fu- ?'F@ collecte-G-e-ucte- by ariou/ ba/trouout te coutry ro3 te loa procee-/ o ar3er:borro8er/ 8o 8ere 3e3ber/ o cooperatie/ a-&a3aa Nayo i co3pliace 8it #re/i-etial Decree No. 175 a- acco3payi letter/ o i/tructio

8ic are /till loati a- out/ta-i eiter a/ actie or -or3at -epo/it accout/ i te boo/ o to/eba/, /all be -epo/ite- to te cooperatie ba locate- i te proice 8ere te -epo/itory ba/ o '&Fa- 'F are locate-, or i tere i/ o cooperatie ba i te proice. Te ', i coor-iatio 8it teAutority, /all co3e up 8it te i3ple3eti ui-elie/ o o8 to cre-it te o8er/ o te u-/.

*To/e u-/ 8o/e o8er/ coul- ot be locate- or i-etiie- /all be /ub;ect to e/ceat.


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*ART. 102. #riilee/ a- Icetie/ o Cooperatie 'a/. Te cooperatie ba/ rei/tere- u-er ti/ Co-e/all be ie te /a3e priilee/ a- icetie/ rate- to te rural ba/, priate -eelop3et ba,co33ercial ba/, a- all oter ba/ to re-i/cout ote/ 8it te ', te %a- 'a o te #ilippie/, a-oter oer3et ba/ 8itout aecti i ay 8ay te proi/io/ o ti/ Co-e.

*?1@ &ub;ect to te approal o te ', a cooperatie ba /all publi/ a /tate3et o it/ iacial /tate3eto it/ iacial co-itio, iclu-i to/e o it/ /ub/i-iarie/ a- ailiate/ i /uc ter3/ u-er/ta-able to telay3a a- i /uc re=uecy a/ 3ay be pre/cribe- by te ', i Eli/ or Filipio, at lea/t oce eery=uarter i a e8/paper o local circulatio i te city or proice 8ere te pricipal oice i/ locate- or, i o

e8/paper i/ publi/e- i te /a3e proice/, te i a e8/paper publi/e- i te eare/t city or proice ori a e8/paper o eeral circulatio. Te ', o8eer, 3ay allo8 te po/ti o te iacial /tate3et/ ote cooperatie ba i co/picuou/ place/ it 3ay -eter3ie i lieu o te publicatio re=uire- i te prece-i/etece 8e 8arrate- by te circu3/tace/.

*!o8eer, i ca/e/ o oreclo/ure o 3ortae/ coeri loa/ rate- by a cooperatie ba, a- tee>ecutio o ;u-3et/ tereo ioli real propertie/ a- leie- upo by a /eri, it /all be e>e3pt ro3publicatio re=uire3et 8ere te total a3out o te loa, e>clu-i itere/t a- oter care/ -ue a-upai-, -oe/ ot e>cee- T8o u-re- ity tou/a- ?#250,000.00@ or /uc a3out a/ te ' 3aypre/cribe, a/ 3ay be 8arrate- by te preaili ecoo3ic co-itio/ a- by te ature a- caracter o tecooperatie ba/. It /all be /uiciet publicatio i /uc ca/e/ i te otice o oreclo/ure a- e>ecutio o

;u-3et are po/te- i co/picuou/ area/ i te cooperatie baB/ pre3i/e/, te 3uicipal all, te

3uicipal public 3aret, te baraay all, or te baraay public 3aret, i tere be ay 8ere te property3ortae- i/ /ituate-, 8iti a perio- o /i>ty ?0@ -ay/ i33e-iately prece-i te public auctio or tee>ecutio o ;u-3et. #roo o publicatio a/ re=uire- erei /all be acco3pli/e- by a ai-ait o te/eri or oicer co-ucti te oreclo/ure /ale or e>ecutio o ;u-3et, a- /all be attace- to te recor-o te ca/e.

*?2@ A cooperatie ba /all be allo8e- to oreclo/ure la-/ 3ortae- to it/ /ub;ect to te proi/io/ oRepublic Act No. 57, oter8i/e o8 a/ Co3pree/ie Araria Reor3 %a8 o 19++.

*ART. 10. A//i/tace to Cooperatie 'a/. I accor-ace 8it e>i/ti policie/, oer3et aecie/oer3et:o8e- or cotrolle- corporatio/ a- iacial i/titutio/ /all proi-e a//i/tace, tecical ooter8i/e, to cooperatie ba/ to per3it te3 to ro8, -eelop a- peror3 teir role i coutry/i-e

-eelop3et to8ar-/ a /u/taiable atioal ecoo3ic -eelop3et. )eeer a cooperatie ba orai


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*ART. 10. Type/ o I/urace #roi-e-. -er te cooperatie i/urace prora3 e/tabli/e- a- or3e- byte irtue o te proi/io/ o ti/ Co-e, te cooperatie i/urace /ocietie/ /all proi-e it/ co/tituti3e3ber/ -ieret type/ o i/urace coerae co/i/ti o, but ot li3ite- to, lie i/urace 8it /peciaroup coerae, loa protectio, retire3et pla/, e-o83et, 3otor eicle coerae, bo-i, crop a-lie/toc protectio a- e=uip3et i/urace.

*ART. 107. Applicability o I/urace %a8/. Te proi/io/ o te I/urace Co-e a- all oter la8/ a-reulatio/ relatie to te orai


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3e3ber/ allocatio a- -i/tributio o /urplu/e/ a- all oter 3atter/ relati to teir iteral aair/ /all beoere- by ti/ Co-e.

*?2@ All 3atter/ relati to te raci/e or certiicate o public coeiece a- ece//ity o public /ericecooperatie/ /uc a/ capitalii a- /uc oter 3atter/ aecti teir public /erice operatio/ /all be oere- by te properoer3et aecy cocere-.

*?@ Te Autority a- te proper oer3et aecy cocere- /all ;oitly i//ue te ece//ary rule/ a-

reulatio/ to i3ple3et ti/ Capter.

*?6@ Te Autority /all e/tabli/ a co33ittee or te 3oitori o tra/portatio /erice cooperatie/co3po/e- o repre/etatie/ ro3 te Autority, te %a- Tra/portatio Fraci/i a- Reulatory 'oar-?%TFR'@, te %a- Tra/portatio "ice ?%T"@, "ice o Tra/port Cooperatie/ ?"TC@, oter cocere-oer3et aecie/, a/ 3ay be ece//ary, a- te Natioal Fe-eratio o Tra/portatio Cooperatie/. Alocal 3oitori co33ittee /all lie8i/e be e/tabli/e- at te e>te/io oice/ o te Autority to acilitate te3oitori o tra/portatio cooperatie/.

*ART. 112. Eae3et i Allie- 'u/ie// by Tra/portatio &erice Cooperatie/. &ub;ect to pertietatioal la8/ a- local or-iace/, pri3ary tra/portatio /erice cooperatie/ iclu-i /eco-ary a-tertiary e-eratio o cooperatie/ 3ay eae i a bu/ie// relate- to tra/portatio /erice, iclu-i but o

li3ite- to4*?1@ I3portatio, -i/tributio a-, 3areti o petroleu3 pro-uct/ i accor-ace 8it e>i/ti la8/

*?2@ "peratio o a/olie /tatio/ a- tra/portatio /erice ceter/

*?@ I3portatio, -i/tributio a- 3areti o /pare part/ a- /upplie/ a-

*?6@ Mareti o eicleG-rier/ i/urace policie/.

*ART. 11. Ree8al o Fraci/e a- $eicle Rei/tratio. Ree8al/ o raci/e a- eicle rei/tratio/all be rate- to tra/portatio /erice cooperatie/4 #roi-e-, Tat /uc cooperatie pre/et/ a certiicate

o oo- /ta-i i//ue- by te Autority, "TC, a- te local oer3et uit cocere- a/ proo tat it a/cotiuou/ly proi-e- te re=uire- public tra/portatio /erice/.

*Te Autority, i co/ultatio 8it te cocere- oer3et aecie/ a- cooperatie /ector, /all i//ueappropriate rule/ a- reulatio/ pertaii to te proi/io/ o ti/ Capter.*

&ec. 15. Article/ 115, 11, 117 a- 11+ o Capter K$ o &pecial #roi/io/ relati to Cooperatie I/urace&ocietie/ o te /a3e Co-e are ereby tra/erre- to aoter capter. Capter K$ a/ a3e-e- /all o8rea-, a/ ollo8/4

C!A#TER K$CREDIT C""#ERATI$E&

*ART. 116. Coerae. Ti/ Capter /all apply to cre-it cooperatie/ a- oter cooperatie/, iclu-i3ultipurpo/e cooperatie/, tat proi-e /ai/ a- cre-it to teir 3e3ber/ oly. Te re/t o te proi/io/ oti/ Co-e /all apply to te3 i/oar a/ te /a3e are ot ico/i/tet 8it te proi/io/ o ti/ Capter.

*ART. 115. Deiitio a- "b;ectie/. A cre-it cooperatie i/ a iacial orai


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*?@ To proi-e relate- /erice/ to eable it/ 3e3ber/ to 3a>i3ia3iatio a- oter /erice/ 8ic it re-er/ u-er ti/ Co-e.

*po te aorable certiicatio o te ' a- te prior approal o te Autority, a cooperatie, te 3aipurpo/e o 8ic i/ to peror3 /ai/ a- cre-it uctio/, 3ay coert to iacial /erice cooperatie/ub;ect to te re=uire- =ualiicatio/ a- proce-ure/ proi-e- u-er ti/ Co-e a- i te i3ple3eti rule/a- reulatio/.

*ART. 120. Me3ber/ip a- Ailiatio. A iacial /erice cooperatie /all ae te t8o ?2@ type/ o3e3ber/4


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*?1@ Reular 3e3ber/, 8o are atural per/o/ a-

*?2@ A//ociate 3e3ber/, 8o are atural per/o/ but 8o -o ot i33e-iately =ualiy u-er te re=uire3et/or 3e3ber/ip /et out i te byla8/ o te cooperatie. All a//ociate 3e3ber/ 8o are atural per/o/ /allbe ie t8o ?2@ year/ to beco3e reular 3e3ber/. Failure to coert 8iti te /ai- perio- /all 3eaauto3atic 8it-ra8al o teir a//ociate 3e3ber/ip. Tey 3ay, o8eer, re:apply a/ reular 3e3ber/ atert8o ?2@ year/.

*Mior/ 8o are -epe-et/ o reular 3e3ber/ ca =ualiy a/ a//ociate 3e3ber/. )e tey reac te ae

o 3a;ority a- 8iti t8o ?2@ year/ ro3 acceptace/ o teir a//ociate 3e3ber/ip, tey ae te optio tocoert ito reular 3e3ber/. A/ a//ociate 3e3ber/, tey 3ay ope accout/, -epo/it u-/ a- 8it-ra8ro3 teir accout, /ub;ect to te byla8/ a- rule/ o te cooperatie, a- te rule/ a- reulatio/ o teAutority, ot8it/ta-i te proi/io/ o e>i/ti la8/ to te cotrary.

*ART. 121. Reulatio a- &uperi/io. Te Autority /all e>erci/e lea- reulatory po8er/ a- /uperi/iooer te operatio/ o te iacial /erice cooperatie/, to 8it4

*?1@ I//ue rule/ a- reulatio/ or te /ae a- /ou- co-uct o operatio/ o iacial /erice cooperatie/

*?2@ E/tabli/ /ta-ar-/ o operatio or uior3 applicatio to all iacial /erice cooperatie/

*?@ #re/cribe ratio/, ceili/, li3itatio/, or oter or3/ o reulatio o te -ieret type/ o accout/ a-practice/ o iacial /erice cooperatie/ 8ic /all, coor3 to iteratioally accepte- /ta-ar-/

*?6@ Ie/tiate to -eter3ie 8eter a iacial /erice cooperatie i/ co-ucti it/ bu/ie// i a /ae a-/ou- 3aer

*?5@ Co-uct reular e>a3iatio o te boo/ o accout/, recor-/ a- oter -ocu3et/ o iacial /ericecooperatie/

*?@ I=uire ito te /olecy a- li=ui-ity o a iacial /erice cooperatie/

*?7@ #re/cribe appropriate ee/ or /uperi/io a- e>a3iatio o iacial /erice cooperatie/ to a3o

oter/, 3oitor a- oer/ee tat e>i/ti la8/ a- reulatio/ are co3plie- 8it*?+@ #a// upo a- reie8 te =ualiicatio/ a- -i/=ualiicatio/ o i-ii-ual/ electe- or appoite- -irector/or oicer/ a- -i/=ualiy to/e ou- uit

*?9@ Di/=ualiy, /u/pe- or re3oe ay -irector or oicer 8o co33it/ or o3it/ a act 8ic re-er i3 uitor te po/itio

*?10@ &elect, -e/iate a- -eputi


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*Te Autority /all iclu-e i it/ rule/ a- reulatio/, appropriate /actio/ a- pealtie/, o te iacia/erice cooperatie/, it/ 3e3ber/, oicer/ a- re/po/ible per/o/, or ay actio tat ail/ to a-ere to/ou- a- pru-et 3aae3et practice/ or are ico/i/tet 8it te proi/io/ o ti/ Co-e, oter applicablela8/ o cooperatie/, rule/, reulatio/, circular/ or or-er/ i//ue- by te Autority, a- re=uire tecooperatie to u-ertae correctie or re3e-ial 3ea/ure/ relatie tereto.

*Te ' i/ autoria3iatio o iacial /erice cooperatie/ a/it 3ay -ee3 ece//ary.

*ART. 122. #ro3ulatio o Rule/ a- Reulatio/. Te ', i coor-iatio 8it te Autority, /all pre/cribete appropriate pru-etial rule/ a- reulatio/ applicable to te iacial /erice cooperatie/.

*&ub;ect to te reulatio/ o te ', te bai la8/, rule/ a- reulatio/ /all ae /uppletoryapplicatio to iacial /erice/ cooperatie/4 #roi-e-, o8eer, Tat te proi/io/ o acce// to borro8ior iacial a//i/tace to be e>te-e- by te ' o te #ilippie Depo/it I/urace Corporatio ?#IDC@ /allot apply to iacial /erice cooperatie/4 #roi-e-, urter, Tat te -epo/it liabilitie/ o te iacial /ericecooperatie/ /all ot be i/ure- by te #DIC.

*ART. 12. Fiacial &erice Cooperatie Fe-eratio/. Fiacial /erice cooperatie/ 3ay orai


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*Te Depart3et o Fiace, te ' a- oter cocere- oer3et aecie/ /all proi-e tecical a-traii /upport or te eectie a- eiciet i3ple3etatio o te reulatory a- /uperi/ory uctio/ a-re/po/ibilitie/ o te Autority.

*ART. 125. #roibitio. Te ter3/ cre-it cooperatie, iacial /erice cooperatie a- iacial /ericecooperatie e-eratio /all be u/e- e>clu/iely by to/e 8o are -uly rei/tere- u-er ti/ Co-e, a- oper/o, roup o per/o/, or orai


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#re/i-etial Decree No. 29, a/ a3e-e- by #re/i-etial Decree No. 1654 #roi-e-, Tat electriccooperatie/ rei/tere- 8it te Autority /all o8 be coere- by te proi/io/ o ti/ Co-e a/ 8ell a/ uturerule/ a- i//uace/ o te Autority4 #roi-e-, o8eer, Tat te /ecurity o teure a- te collectiebaraii aree3et bet8ee te cooperatie 3aae3et a- te e3ployee/ /all be re/pecte-, 8it o-i3iutio o teir e>i/ti /alarie/, e3olu3et/, ra/ a- oter beeit/

*?2@ Te electric cooperatie/ rei/tere- 8it te Autority 8it e>i/ti loa/ obtaie- ro3 NEA ater Lue2, 2001 /all cotiue to ob/ere te ter3/ o /uc loa/ util ull pay3et or /ettle3et tereo

*?@ E>cept a/ proi-e- i te i33e-iately prece-i pararap, te NEA /all o loer e>erci/e reulatoryor /uperi/ory po8er/ o electric cooperatie/ -uly rei/tere- 8it te Autority

*?6@ Electric cooperatie/ rei/tere- 8it te Autority are etitle- to core//ioal allocatio/, rat//ub/i-iarie/ a- oter iacial a//i/tace or rural electriicatio 8ic ca be cour/e- trou teDepart3et o Eery, te Autority a-Gor local oer3et uit/. Te electric cooperatie/ rei/tere- u-erti/ Co-e ca aail o te iacial /erice/ a- tecical a//i/tace proi-e- by te oer3et iaciai/titutio/ a- tecical -eelop3et aecie/ o ter3/ re/pecti teir i-epe-ece a/ autoo3ou/cooperatie/

*?5@ All co-oe- loa/, /ub/i-ie/, rat/ a- oter a//i/tace /all or3 part o te -oate- capital a- u-/o te electric cooperatie/ a- a/ /uc, it /all ot be /ol-, tra-e- or be -ii-e- ito /areol-i/ at ay

ti3e te/e -oate- capitalGu- /all be aluate- or te /ole purpo/e o -eter3ii te e=uity participatio ote 3e3ber/4 #roi-e-, Tat i te ca/e o -i//olutio o te cooperatie, /ai- -oate- capital /all be /ub;ectto e/ceat a-

*?@ Electric cooperatie/ rei/tere- a- coir3e- 8it te Autority u-er Republic Act No. 9+ a-Republic Act No. 99 are ereby -ee3e- rei/tere- u-er ti/ Co-e.

*ART. 1. &are Capital i te Electric Cooperatie/. Te electric cooperatie /all i//ue a- -i/tribute /arecertiicate/ u-er te a3e o teir 3e3ber/, tai ito co/i-eratio teir preiou/ e=uity cotributio/, tea3ortiecutie or-er/ /all apply tocooperatie/ -uly rei/tere- u-er ti/ Co-e.

*ART. 1. Rei/ter o Cooperatie/. Te Autority /all e/tabli/ a rei/ter 8ic /all cotai acrooloical etry o te a3e o eery cooperatie rei/tere- or -i//ole- u-er ti/ Co-e toeter 8it teba/ic ior3atio re=uire- or rei/tratio or -i//olutio a- ay oter ior3atio co/i-ere- u/eul. TeAutority /all publi/ aually a li/t o e>i/ti cooperatie/, cooperatie/ u-er -i//olutio a- to/e 8o/erei/tratio are cacelle- -uri te year toeter 8it /uc ior3atio o eac o te3 a/ 3ay be pre/cribe-i te rule/ a- reulatio/.

*ART. 17. &ettle3et o Di/pute/, Cociliatio, a- Me-iatio #rocee-i/. Di/pute/ a3o 3e3ber/oicer/, -irector/, a- co33ittee 3e3ber/, a- itra:cooperatie, iter:cooperatie, itra:e-eratio or iter:


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e-eratio -i/pute/ /all, a/ ar a/ practicable, be /ettle- a3icably i accor-ace 8it te cociliatio or3e-iatio 3ecai/3/ e3bo-ie- i te byla8/ o cooperatie/ a- i /uc oter applicable la8/.

*Te cociliatio a- 3e-iatio co33ittee o te cooperatie /all acilitate te a3icable /ettle3et o itra:cooperatie -i/pute/ a- -i/pute/ a3o 3e3ber/, oicer/, -irector/, a- co33ittee 3e3ber/.

*&oul- /uc cociliatio or 3e-iatio procee-i ail, te 3atter /all be /ettle- trou olutary arbitratio#roi-e-, o8eer, Tat beore ay party ca ali-ly ile a co3plait 8it te Autority or olutary arbitratioit 3u/t ir/t /ecure a certiicatio ro3 it/ cociliatio a- 3e-iatio co33ittee a- ro3 it/ cociliatio a-

3e-iatio co33ittee a- ro3 te cooperatie uio or e-eratio to 8ic it belo/ tat -e/pite all eort/ to/ettle te i//ue/, te /a3e ae aile-.

*Te ;uri/-ictio o te olutary arbitrator/ /all be e>clu/ie a- oriial a- teir -eci/io/ /all beappealable to te "ice o te #re/i-et. Te Autority /all i//ue a- a-opt te proper rule/ o proce-ureoeri arbitratio a/ te pri3ary a- e>clu/ie 3o-e or -i/pute re/olutio i accor-ace 8it teAlteratie Di/pute Re/olutio Act o 2006.

*For ti/ purpo/e, te Autority /all co/titute a li/t o =ualiie- olutary arbitrator/.*

&ec. 20. A e8 article i/ i/erte- i Capter K$III o te Mi/cellaeou/ #roi/io/ o te /a3e Co-e a- /alrea-, a/ ollo8/4

*ART. 1+. Loit Core//ioal "er/it Co33ittee o Cooperatie ?LC"CC@. Tere i/ ereby create- aLoit Core//ioal "er/it Co33ittee co3po/e- o te Cair3a o te &eate Co33ittee oCooperatie/ a- te Cair3a o te !ou/e Co33ittee o Cooperatie/ Deelop3et, 8it our ?6@3e3ber/ eac ro3 bot !ou/e/. Te /ai- 3e3ber/ /all be -uly appoite- by te &eate #re/i-et a- te&peaer o te !ou/e o Repre/etatie/ ro3 te 3e3ber/ o te re/pectie co33ittee ba/e- o teproportioal repre/etatio o te partie/ or coalitio terei.

*Te Loit "er/it Co33ittee /all reie8 a- approe te i3ple3eti rule/ a- reulatio/ o ti/ Co-ea- 3oitor it/ proper i3ple3etatio.

*Te aual appropriate or te oer/it co33ittee /all be care- to te bu-et o bot !ou/e/ o

Core// i te eeral Appropriatio/ Act ?AA@.*&ec. 21. Article 122 i/ ereby -elete-. Article/ 12, 126, 125, 12, 127, 12+, 129 a- 10 o Capter K$II oFial #roi/io/ o ti/ Co-e are a3e-e- to rea-, a/ ollo8/4

C!A#TER KIKFINA% #R"$I&I"N&

*ART. 19. I3ple3eti Rule/ a- Reulatio/. Te Autority /all i//ue rule/ a- reulatio/ to i3ple3etto/e proi/io/ o ti/ Co-e 8ic e>pre//ly call or te i//uace tereo. Ti/ pararap /all ot apply toto/e ca/e/ 8erei a /peciic proi/io o ti/ Co-e e>pre//ly -e/iate/ particular oer3et aecie/

8ic /all i//ue te reulatio/ calle- or by ay proi/io o ti/ Co-e.

*ART. 160. #eal #roi/io/. Te ollo8i act/ or o3i//io/ aecti cooperatie/ are ereby proibite-4

*?1@ Te u/e o te 8or- OcooperatieB by ay per/o or o per/o/ or oraicept a/ proi-e- or u-er Article 10 ereo. I ca/e o iolatio, tei-ii-ual or i-ii-ual/ cocere-, or i te ca/e o a oraicee-i T8ety tou/a- pe/o/ ?#20,000.00@ or bot at te -i/cretio o te court

*Te Autority 3ay 3otu proprio, iitiate co3plait/ or iolatio/ o ti/ proi/io.

*?2@ Ay per/o 8o 8illully atte3pt/ i ay 3aer to ea-e or -eeat ta> i iolatio o te proi/io/ oArticle/ 0 a- 1 o ti/ Co-e /all i a--itio tereo, be pui/e- by a ie o ot le// ta Tirty tou/a-


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pe/o/ ?#0,000.00@ but ot 3ore ta "e u-re- tou/a- pe/o/ ?#100,000.00@ a- /uer i3pri/o3et oot le// ta t8o ?2@ year/ but ot 3ore ta our ?6@ year/4 #roi-e-, Tat te coictio or ac=uittal obtaie-u-er ti/ Article /all ot be a bar to te ili o a ciil /uit or te collectio o ta>e/

*?@ Direct or i-irect iolatio or circu3etio o te proi/io/ o Article/ 0 a- 1 o ti/ Co-e co33itteeby ay public oicial or e3ployee o ay bureau, oice or aecy o te oer3et tat -eprie/, -i3ii/e/or i ay 3aer i-er/ or re/trict/ ay -uly rei/tere- cooperatie ro3 te ull e;oy3et o te e>e3ptioro3 te pay3et o te ta>e/, ee/ a- care/ eu3erate- terei, /all upo coictio, /uer a pealty oot le// tat oe ?1@ year but ot 3ore ta ie ?5@ year/ i3pri/o3et or a ie i te a3out o ot le// ta

Fie tou/a- pe/o/ ?#5,000.00@ or bot at te -i/cretio o te court a- /all urter be -i/=ualiie- to ol-ay oter oice

*?6@ Direct or i-irect itererece or iteretio by ay public oicial or e3ployee ito te iteral aair/ o acooperatie o 8ic e i/ ot a 3e3ber, /uc a/, but ot li3ite- to, te ollo8i4

*?a@ Ilueci te electio or appoit3et o oicer/, -irector/, co33ittee 3e3ber/ a- e3ployee/ troupublic or priate e-or/e3et or ca3pai or or aai/t ay per/o or roup o per/o/

*?b@ Re=uiri prior clearace/ or ay policy or -eci/io 8iti te cooperatie

*?c@ Re=ue/ti or -e3a-i or te creatio o po/itio/ or orai


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*?7@ Ay iolatio o ay proi/io o ti/ Co-e or 8ic o pealty i/ i3po/e- /all be pui/e- byi3pri/o3et o ot le// ta /i> ?@ 3ot/ or 3ore ta oe ?1@ year a- a ie o ot le// ta "etou/a- pe/o/ ?#1,000.00@, or bot at te -i/cretio o te court.

*I ca/e o iolatio o ay proi/io o ti/ Co-e, te i-ii-ual or i-ii-ual/, a- i te ca/e o oraicept a/ e>pre//ly proi-e- by ti/ Co-e, #re/i-etial Decree No. 175 a- alloter la8/, or part/ tereo, ico/i/tet 8it ay proi/io o ti/ Co-e /all be -ee3e- repeale-4 #roi-e-,Tat te proi/io/ o &ec./ , 5, a- 7 o #re/i-etial Decree No. 165, E>ecutie "r-er No. 2, /erie/ o2007. Reeue Reulatio No. 20:2001, a- all la8/, -ecree/, e>ecutie or-er/, i3ple3eti rule/ a-reulatio/, 'IR circular/, 3e3ora-u3 or-er/, letter/ o i/tructio, local oer3et or-iace/, or part/tereo ico/i/tet 8it ay o te proi/io/ o ti/ Act are ereby repeale-, a3e-e- or 3o-iie-accor-ily.

*ART.166. Tra/itory #roi/io/.: ?1@ All cooperatie/ rei/tere- a- coir3e- 8it te Autority u-erRepublic Act No. 9+ a- Republic Act No. 99, are ereby -ee3e- rei/tere- u-er ti/ co-e, a- a e8certiicate o rei/tratio /all be i//ue- by te autority4 #roi-e-, Tat /uc cooperatie /all /ub3it to teeare/t oice o te autority a copy o teir certiicate o rei/tratio or certiicate o coir3atio, te article/o cooperatio, teir byla8/, a- teir late/t au-ite- iacial /tate3et 8iti oe ?1@ year ro3 te eectiityo ti/ co-e, oter8i/e te /all be -ee3e- cacelle- 3otu proprio.

*?2@ Follo8i te i//uace o te e8 certiicate o rei/tratio, te rei/tere- cooperatie/ /all /ecure- teircertiicate o ta> e>e3ptio ro3 te eare/t oice o te 'ureau o Iteral Reeue ?'IR@4 #roi-e-, Tat/uc e>e3ptio/ /all be ali- o ie ?5@ year/ ro3 te -ate o i//ue4 #roi-e-, urter, Tat all upai-a//e//3et/ o preiou/ly rei/tere- cooperatie /all be te /ub;ect o co3pro3i/e /ettle3et o ter3/aorable to /uc cooperatie a-4 #roi-e-, ially, Tat te 'IR a- te autority /all be ;oitly i//ue teece//ary reulatio/ o ti/ e>e3ptio a- co3pro3i/e 8iti iety ?90@ -ay/ ro3 te eectiity ro3 ti/Co-e.

*?@ Rei/tratio o electric cooperatie/ 8it te Autority /all ot be co/i-ere- a/ a tra/erre- oo8er/ip o it/ a//et/ a- liabilitie/ or /all it co/titute a cae i te ature, /tructure, a- /tatu/ o tecooperatie. &ai- rei/tratio /all ot re/ult i te reocatio o te co-oe- loa/ u-er Republic Act No.91, oter8i/e o8 a/ te Electric #o8er I-u/try Reor3 Act4 #roi-e-, Tat electric cooperatie/ 8ite>i/ti loa/ /all ot be /ub;ect to te cotrol a- /uperi/io/ o it/ cre-itor/ a- /all oly be li3ite- to teulill3et o eac ciil obliatio/.


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*ART.165. &eparabilty Clau/e. : &oul- ay part o ti/ co-e be -eclare- uco/titutioal, te ali-ity ore3aii proi/io ereo /all re3ai i ull a- eect.

*ART.16. Eectiity Clau/e. : Ti/ co-e /all tae eect itee ?15@ -ay/ ro3 it/ publicatio i a e8/papeo eeral circulatio.

Approe-4

?&-.@ #R"ER" C. N"RA%E&&peaer o te !ou/e o Repre/etatie/

?&-.@ LAN #"NCE ENRI%E#re/i-et o te &eate

Ti/ Act 8ic i/ a co/oli-atio o &eate 'ill No. 226 a- !ou/e 'ill No. 612 8a/ ially pa//e- by te&eate a- te !ou/e o Repre/etatie/ o Dece3ber 1, 200+.?&-.@ MARI%JN '. 'ARA:JA#&ecretary eeral!ou/e o Repre/eatie/

?&-.@ EMMA %IRI":REJE&&ecretary o &eate

Approe-4 February 17, 2009

?&-.@ %"RIA MACA#AA%:ARR"J"#re/i-et o te #ilippie/

Documents

Philippine COOPERATIVE_Republic Act 9520