Republ

i
coft
hePhi
l
ippi
nes
Congr
essoft
hePhi
l
ippi
nes
Met
roMani
l
a

Four
teent
hCongr
ess
SecondRegul
arSessi
on

Begunandhel
dinMet
roMani
l
a,onMonday
,the
t
went
y-ei
ght
hdayofJul
y,t
wot
housandei
ght
.
Republ
i
cActNo.9520 Febr
uar
y17,
2009

ANACTAMENDI
NGTHECOOPERATI
VECODEOF
THEPHI
LIPPI
NESTOBEKNOWNASTHE
"
PHI
LIPPI
NECOOPERATI
VECODEOF2008"

Bei
tenact
edbyt
heSenat
eandHouseof
Repr
esent
ati
vesoft
hePhi
l
ippi
nesi
nCongr
ess
assembl
ed:
:
SECTI
ON1.Ar
ti
cles1,
2,3,
4and5ofChapt
er1on
Gener
alConcept
sandPr
inci
plesofRepubl
i
cAct
No.6938,
other
wiseknownast
he"
Cooper
ati
ve
Codeoft
hePhi
l
ippi
nes,
"ar
eher
ebyamendedt
o
r
eadasf
oll
ows:

CHAPTERI
GENERALCONCEPTSANDPRI
NCI
PLES

"
ARTI
CLE1.Ti
tl
e.-Thi
sActshal
lbeknownast
he
"
Phi
l
ippi
neCooper
ati
veCodeof2008"
.

"
ART.2.Decl
arat
ionofPol
i
cy.
-Iti
sthedecl
ared
pol
i
cyoft
heSt
atet
ofost
ert
hecr
eat
ionand
gr
owt
hofcooper
ati
vesasapr
act
ical
vehi
clef
or
pr
omot
ingsel
f-
rel
i
anceandhar
nessi
ngpeopl
e
powert
owar
dst
heat
tai
nmentofeconomi
c
dev
elopmentandsoci
alj
ust
ice.TheSt
ateshal
l
encour
aget
hepr
ivat
esect
ort
ounder
taket
he
act
ual
for
mat
ionandor
gani
zat
ionofcooper
ati
ves
andshal
lcr
eat
eanat
mospher
ethati
sconduci
ve
t
othegr
owt
handdev
elopmentoft
hese
cooper
ati
ves.

"
Towar
dthi
send,
theGov
ernmentandal
li
ts
br
anches,
subdi
vi
sions,
inst
rument
ali
ti
esand
agenci
esshal
lensur
ethepr
ovi
sionoft
echni
cal
gui
dance,
financi
alassi
stanceandot
herser
vices
t
oenabl
esai
dcooper
ati
vest
odev
elopi
ntov
iabl
e
andr
esponsi
veeconomi
cent
erpr
isesandt
her
eby
br
ingaboutast
rongcooper
ati
vemov
ementt
hat
i
sfr
eef
rom anycondi
ti
onst
hatmi
ghti
nfr
inge
upont
heaut
onomyoror
gani
zat
ional
int
egr
it
yof
cooper
ati
ves.

"
Fur
ther
,theSt
ater
ecogni
zest
hepr
inci
pleof
subsi
diar
it
yunderwhi
cht
hecooper
ati
vesect
or
wi
l
lini
ti
ateandr
egul
atewi
thi
nit
sownr
ankst
he
pr
omot
ionandor
gani
zat
ion,
trai
ningandr
eser
ach,
audi
tandsuppor
tser
vicesr
elat
ivet
ocooper
ati
ves
wi
thgov
ernmentassi
stancewher
enecessar
y.

"
ART.3.Gener
alConcept
s.-Acooper
ati
vei
san
aut
onomousanddul
yregi
ster
edassoci
ati
onof
per
sons,
wit
hacommonbondofi
nter
est
,who
hav
evol
unt
ari
l
yjoi
nedt
oget
hert
oachi
evet
hei
r
soci
al,
economi
c,andcul
tur
alneedsand
aspi
rat
ionsbymaki
ngequi
tabl
econt
ri
but
ionst
o
t
hecapi
tal
requi
red,
pat
roni
zi
ngt
hei
rpr
oduct
sand
ser
vicesandaccept
ingaf
airshar
eoft
her
isks
andbenef
it
soft
heunder
taki
ngi
naccor
dance
wi
thuni
ver
sal
l
yaccept
edcooper
ati
vepr
inci
ples.

"
ART.4.Cooper
ati
vePr
inci
ples.-Ev
ery
cooper
ati
veshal
lconducti
tsaf
fai
rsi
n
accor
dancewi
thFi
l
ipi
nocul
tur
e,goodv
aluesand
ex
per
ienceandt
heuni
ver
sal
l
yaccept
edpr
inci
ples
ofcooper
ati
onwhi
chi
ncl
ude,
butar
enotl
i
mit
ed
t
o,t
hef
oll
owi
ng:

"
(1)Vol
unt
aryandOpenMember
shi
p-
Cooper
ati
vesar
evol
unt
aryor
gani
zat
ions,
opent
o
al
lper
sonsabl
etouset
hei
rser
vicesandwi
l
li
ngt
o
acceptt
her
esponsi
bil
i
tiesofmember
shi
p,
wi
thoutgender
,soci
al,
raci
al,
cul
tur
al,
pol
i
tical
or
r
eli
giousdi
scr
imi
nat
ion.

"
(2)Democr
ati
veMemberCont
rol
-Cooper
ati
ves
ar
edemocr
ati
cor
gani
zat
ionst
hatar
econt
rol
l
ed
byt
hei
rmember
swhoact
ivel
ypar
ti
cipat
ein
set
ti
ngt
hei
rpol
i
ciesandmaki
ngdeci
sions.Men
andwomenser
vingasel
ect
edr
epr
esent
ati
ves,
di
rect
orsorof
fi
cer
sar
eaccount
abl
etot
he
member
shi
p.I
npr
imar
ycooper
ati
ves,
member
s
hav
eequal
vot
ingr
ight
sofone-
member
,one-
vot
e.
Cooper
ati
vesatot
herl
evel
sar
eor
gani
zedi
nthe
samedemocr
ati
cmanner
.

"
(3)MemberEconomi
cPar
ti
cipat
ion-Member
s
cont
ri
but
eequi
tabl
yto,
anddemocr
ati
cal
l
ycont
rol
,
t
hecapi
tal
oft
hei
rcooper
ati
ves.Atl
eastpar
tof
t
hatcapi
tal
ist
hecommonpr
oper
tyoft
he
cooper
ati
ve.Theyshal
lrecei
vel
i
mit
ed
compensat
ionorl
i
mit
edi
nter
est
,ifany
,oncapi
tal
subscr
ibedandpai
dasacondi
ti
onof
member
shi
p.Member
sal
l
ocat
esur
plusesf
orany
oral
loft
hef
oll
owi
ngpur
poses:
dev
elopi
ngt
he
cooper
ati
vebyset
ti
ngupr
eser
ves,
par
tofwhi
ch
shoul
datl
eastbei
ndi
vi
sibl
e;benef
it
ti
ngmember
s
i
npr
opor
ti
ont
othei
rpar
tonageoft
he
cooper
ati
ve'
sbubsi
ness;
and,
suppor
ti
ngot
her
act
ivi
ti
esappr
ovedbyt
hemember
shi
p.
"
(4)Aut
onomyandI
ndependence-Cooper
ati
ves
ar
eaut
onomous,
sel
f-
hel
por
gani
zat
ions
cont
rol
l
edbyt
hei
rmember
s.I
ftheyent
eri
nto
aggr
eement
swi
thot
heror
gani
zat
ions,
incl
udi
ng
gov
ernment
,orr
aisecapi
tal
from ex
ter
nal
sour
ces,
t
heyshal
ldosoont
ermst
hatensur
edemocr
ati
c
cont
rol
oft
hei
rmember
sandmai
ntai
nthei
r
cooper
ati
veaut
onomy
.

"
(5)Educat
ion,
Trai
ningandI
nfor
mat
ion-
Cooper
ati
vesshal
lpr
ovi
deeducat
ionandt
rai
ning
f
ort
hei
rmember
s,el
ect
edandappoi
nted
r
epr
esent
ati
ves,
manager
s,andempl
oyees,
so
t
hatt
heycancont
ri
but
eef
fect
ivel
yandef
fi
cient
ly
t
othedev
elopmentoft
hei
rcooper
ati
ves.

"
(6)Cooper
ati
onAmongCooper
ati
ves-
Cooper
ati
vesser
vet
hei
rmember
smost
ef
fect
ivel
yandst
rengt
hent
hecooper
ati
ve
mov
ementbywor
kingt
oget
hert
hroughl
ocal
,
nat
ional
,regi
onal
andi
nter
nat
ional
str
uct
ures.
(
7)Concer
nforCommuni
ty-Cooper
ati
veswor
k
f
ort
hesust
ainabl
edev
elopmentoft
hei
r
communi
ti
est
hroughpol
i
ciesappr
ovedbyt
hei
r
member
s.

"
ART.5.Def
ini
ti
onofTer
ms.–Thef
oll
owi
ng
t
ermsshal
lmean:

"
(1)Memberi
ncl
udesaper
sonei
thernat
ural
or
j
uri
dical
whoadher
ingt
othepr
inci
plessetf
ort
hin
t
hisCodeandi
ntheAr
ti
clesofCooper
ati
ve,
has
beenadmi
tt
edbyt
hecooper
ati
veasmember
;

"
(2)Gener
alAssembl
yshal
lmeant
hef
ull
member
shi
poft
hecooper
ati
vedul
yassembl
ed
f
ort
hepur
poseofex
erci
singal
lther
ight
sand
per
for
mingal
ltheobl
i
gat
ionsper
tai
ningt
o
cooper
ati
ves,
aspr
ovi
dedbyt
hisCode,
itsar
ti
cles
ofcooper
ati
onandby
laws:
Prov
ided,
Thatf
or
cooper
ati
veswi
thnumer
ousanddi
sper
sed
member
shi
p,t
hegener
alassembl
ymaybe
composedofdel
egat
esel
ect
edbyeachsect
or,
chapt
erordi
str
ictoft
hecooper
ati
vei
n
accor
dancewi
tht
her
ulesandr
egul
ati
onsoft
he
Cooper
ati
veDev
elopmentAut
hor
it
y;

"
(3)Boar
dofDi
rect
orsshal
lmeant
hatbody
ent
rust
edwi
tht
hemanagementoft
heaf
fai
rsof
t
hecooper
ati
veunderi
tsar
ti
clesofcooper
ati
on
andby
laws;

"
(4)Commi
tt
eeshal
lref
ert
oanybodyent
rust
ed
wi
thspeci
fi
cfunct
ionsandr
esponsi
bil
i
tiesunder
t
heby
lawsorr
esol
uti
onoft
hegener
alassembl
y
ort
heboar
dofdi
rect
ors;

"
(5)Ar
ti
clesofCooper
ati
onmeanst
hear
ti
clesof
cooper
ati
onr
egi
ster
edundert
hisCodeand
i
ncl
udesar
egi
ster
edamendmentt
her
eof
;

"
(6)By
lawsmeanst
heby
lawsr
egi
ster
edunder
t
hisCodeandi
ncl
udesanyr
egi
ster
edamendment
t
her
eof
;
"
(7)Regi
str
ati
onmeanst
heoper
ati
veactgr
ant
ing
j
uri
dical
per
sonal
i
tyt
oapr
oposedcooper
ati
ve
andi
sev
idencedbyacer
ti
fi
cat
eofr
egi
str
ati
on;

"
(8)Cooper
ati
veDev
elopmentAut
hor
it
yref
erst
o
t
hegov
ernmentagencyi
nchar
geoft
he
r
egi
str
ati
onandr
egul
ati
onofcooper
ati
vesas
suchher
einaf
terr
efer
redt
ost
heAut
hor
it
y;

"
(9)Uni
ver
sal
l
yAccept
edPr
inci
plesmeanst
hat
bodyofcooper
ati
vepr
inci
plesadher
edt
o
wor
ldwi
debycooper
ati
ves;

"
(10)Repr
esent
ati
veAssembl
ymeanst
hef
ull
member
shi
pofabodyofr
epr
esent
ati
vesel
ect
ed
byeachoft
hesect
ors,
chapt
erordi
str
ictot
he
cooper
ati
vedul
yassembl
edf
ort
hepur
poseof
ex
erci
singsuchpower
slawf
ull
ydel
egat
edunt
o
t
hem byt
hegener
alassembl
yinaccor
dancewi
th
i
tsby
laws;

"
(11)Of
fi
cer
soft
heCooper
ati
veshal
li
ncl
udet
he
member
soft
heboar
dofdi
rect
ors,
member
sof
t
hedi
ff
erentcommi
tt
eecr
eat
edbyt
hegener
al
assembl
y,gener
almanagerorchi
efex
ecut
ive
of
fi
cer
,secr
etar
y,t
reasur
erandmember
shol
ding
ot
herposi
ti
onsasmaybepr
ovi
dedf
ori
nthei
r
by
laws;

"
(12)Soci
alAudi
tisapr
ocedur
ewher
eint
he
cooper
ati
veassessesi
tssoci
ali
mpactandet
hical
per
for
mancev
is-
à-v
isi
tsst
atedmi
ssi
on,
visi
on,
goal
sandcodeofsoci
alr
esponsi
bil
i
tyf
or
cooper
ati
vest
obeest
abl
i
shedbyt
heAut
hor
it
yin
consul
tat
ionwi
tht
hecooper
ati
vesect
or.I
t
enabl
est
hecooper
ati
vet
odev
elopapr
ocess
wher
ebyi
tcanaccountf
ori
tssoci
alper
for
mance
andev
aluat
eit
simpacti
nthecommuni
tyandbe
account
abl
efori
tsdeci
sionsandact
ionst
oit
s
r
egul
armember
s;

"
(13)Per
for
manceAudi
tshal
lref
ert
oanaudi
ton
t
heef
fi
ciencyandef
fect
ivenessoft
he
cooper
ati
veasawhol
e;i
tsmanagementand
of
fi
cer
s;andi
tsv
ari
ousr
esponsi
bil
i
tycent
ersas
basi
sfori
mpr
ovi
ngi
ndi
vi
dual
team orov
eral
l
per
for
manceandf
orobj
ect
ivel
yinf
ormi
ngt
he
gener
almember
shi
ponsuchper
for
mance;

"
(14)ASi
ngl
e-Li
neorSi
ngl
e-Pur
poseCooper
ati
ve
shal
li
ncl
udecooper
ati
veunder
taki
ngact
ivi
ti
es
whi
char
erel
atedt
oit
smai
nli
neofbusi
nessor
pur
pose;

"
(15)Ser
viceCooper
ati
vesar
ethosewhi
ch
pr
ovi
deanyt
ypeofser
vicet
oit
smember
s,
i
ncl
udi
ngbutnotl
i
mit
edt
o,t
ranspor
t,i
nfor
mat
ion
andcommuni
cat
ion,
insur
ance,
housi
ng,
elect
ri
c,
heal
thser
vices,
educat
ion,
banki
ng,
andsav
ings
andcr
edi
t;

"
(16)Subsi
diar
yCooper
ati
ver
efer
stot
hreeor
mor
epr
imar
ycooper
ati
ves,
doi
ngt
hesamel
i
neof
busi
ness,
organi
zedatt
hemuni
cipal
,pr
ovi
nci
al,
ci
ty,
speci
almet
ropol
i
tanpol
i
tical
subdi
vi
sion,
or
economi
czonescr
eat
edbyl
aw,
regi
ster
edwi
th
t
heAut
hor
it
ytounder
takebusi
nessact
ivi
ti
esi
n
suppor
tofi
tsmember
-cooper
ati
ves.
"
SEC.2.Ar
ti
cles6,
7,9,
10,
11,
12,
13,
14,
16,
17,
18,
20,
21,
23,
24and25ofChapt
erI
IonOr
gani
zat
ion
andRegi
str
ati
onoft
hesameCodear
eher
eby
amendedt
oreadasf
oll
ows:

CHAPTERI
I
ORGANI
ZATI
ONANDREGI
STRATI
ON

"
ART.6.Pur
posesofCooper
ati
ves.–A
cooper
ati
vemaybeor
gani
zedandr
egi
ster
edf
or
anyoral
loft
hef
oll
owi
ngpur
poses:

"
(1)Toencour
aget
hri
ftandsav
ingsmobi
l
izat
ion
amongt
hemember
s;

"
(2)Togener
atef
undsandex
tendcr
edi
ttot
he
member
sforpr
oduct
iveandpr
ovi
dentpur
poses;

"
(3)Toencour
ageamongmember
ssy
stemat
ic
pr
oduct
ionandmar
ket
ing;
"
(4)Topr
ovi
degoodsandser
vicesandot
her
r
equi
rement
stot
hemember
s;

"
(5)Todev
elopex
per
ti
seandski
l
lsamongi
ts
member
s;

"
(6)Toacqui
rel
andsandpr
ovi
dehousi
ngbenef
it
s
f
ort
hemember
s;

"
(7)Toi
nsur
eagai
nstl
ossesoft
hemember
s;

"
(8)Topr
omot
eandadv
ancet
heeconomi
c,soci
al
andeducat
ional
stat
usoft
hemember
s;

"
(9)Toest
abl
i
sh,
own,
leaseoroper
ate
cooper
ati
vebanks,
cooper
ati
vewhol
esal
eand
r
etai
lcompl
exes,
insur
anceand
agr
icul
tur
al/
indust
ri
alpr
ocessi
ngent
erpr
ises,
and
publ
i
cmar
ket
s;
"
(10)Tocoor
dinat
eandf
aci
l
itat
etheact
ivi
ti
esof
cooper
ati
ves;

"
(11)Toadv
ocat
efort
hecauseoft
hecooper
ati
ve
mov
ement
s;

"
(12)Toensur
ethev
iabi
l
ityofcooper
ati
ves
t
hrought
heut
il
iz
ati
onofnewt
echnol
ogi
es;

"
(13)Toencour
ageandpr
omot
esel
f-
hel
porsel
f-
empl
oymentasanengi
nef
oreconomi
cgr
owt
h
andpov
ert
yal
l
evi
ati
on;
and

"
(14)Tounder
takeanyandal
lot
heract
ivi
ti
esf
or
t
heef
fect
iveandef
fi
cienti
mpl
ement
ati
onoft
he
pr
ovi
sionsoft
hisCode.

"
ART.7.Obj
ect
ivesandGoal
sofaCooper
ati
ve.–
Thepr
imar
yobj
ect
iveofev
erycooper
ati
vei
sto
hel
pimpr
ovet
hequal
i
tyofl
i
feofi
tsmember
s.
Towar
dst
hisend,
thecooper
ati
veshal
lai
mto:
"
(a)Pr
ovi
degoodsandser
vicest
oit
smember
sto
enabl
ethem t
oat
tai
nincr
easedi
ncome,
sav
ings,
i
nvest
ment
s,pr
oduct
ivi
ty,
andpur
chasi
ngpower
,
andpr
omot
eamongt
hemsel
vesequi
tabl
e
di
str
ibut
ionofnetsur
plust
hroughmax
imum
ut
il
iz
ati
onofeconomi
esofscal
e,cost
-shar
ingand
r
isk-
shar
ing;

"
(b)Pr
ovi
deopt
imum soci
alandeconomi
c
benef
it
stoi
tsmember
s;

"
(c)Teacht
hem ef
fi
cientway
sofdoi
ngt
hingsi
na
cooper
ati
vemanner
;

"
(d)Pr
opagat
ecooper
ati
vepr
act
icesandnew
i
deasi
nbusi
nessandmanagement
;

"
(e)Al
l
owt
hel
oweri
ncomeandl
esspr
ivi
l
eged
gr
oupst
oincr
easet
hei
rowner
shi
pint
heweal
th
oft
henat
ion;
and
"
(f)Cooper
atewi
tht
hegov
ernment
,ot
her
cooper
ati
vesandpeopl
e-or
ient
edor
gani
zat
ionst
o
f
urt
hert
heat
tai
nmentofanyoft
hef
oregoi
ng
obj
ect
ives.

"
ART.8.Cooper
ati
vesNoti
nRest
rai
ntofTr
ade.–
Nocooper
ati
veormet
hodoractt
her
eofwhi
ch
compl
i
eswi
tht
hisCodeshal
lbedeemeda
conspi
racyorcombi
nat
ioni
nrest
rai
ntoft
radeor
ani
l
legal
monopol
y,oranat
temptt
olessen
compet
it
ionorf
ixpr
icesar
bit
rar
il
yinv
iol
ati
onof
anyl
awsoft
hePhi
l
ippi
nes.

"
ART.9.Cooper
ati
vePower
sandCapaci
ti
es.–A
cooper
ati
ver
egi
ster
edundert
hisCodeshal
lhav
e
t
hef
oll
owi
ngpower
s,r
ight
sandcapaci
ti
es:

"
(1)Tot
heex
clusi
veuseofi
tsr
egi
ster
edname,
to
sueandbesued;

"
(2)Ofsuccessi
on;
"
(3)Toamendi
tsar
ti
clesofcooper
ati
oni
n
accor
dancewi
tht
hepr
ovi
sionsoft
hisCode;

"
(4)Toadoptby
lawsnotcont
rar
ytol
aw,
mor
alsor
publ
i
cpol
i
cy,
andt
oamendandr
epeal
thesame
i
naccor
dancewi
tht
hisCode;

"
(5)Topur
chase,
recei
ve,
takeorgr
ant
,hol
d,
conv
ey,
sel
l
,lease,
pledge,
mor
tgage,
and
ot
her
wisedeal
wit
hsuchr
eal
andper
sonal
pr
oper
tyast
het
ransact
ionoft
hel
awf
ulaf
fai
rsof
t
hecooper
ati
vemayr
easonabl
yandnecessar
il
y
r
equi
re,
subj
ectt
othel
i
mit
ati
onspr
escr
ibedby
l
awandt
heConst
it
uti
on;

"
(6)Toent
eri
ntodi
vi
sion,
mer
gerorconsol
i
dat
ion,
aspr
ovi
dedi
nthi
sCode;

"
(7)Tof
orm subsi
diar
ycooper
ati
vesandj
oin
f
eder
ati
onsoruni
ons,
aspr
ovi
dedi
nthi
sCode;
"
(8)Toav
ail
ofl
oans,
beent
it
ledt
ocr
edi
tandt
o
acceptandr
ecei
vegr
ant
s,donat
ionsand
assi
stancef
rom f
orei
gnanddomest
icsour
ces,
subj
ectt
othecondi
ti
onsofsai
dloans,
credi
ts,
gr
ant
s,donat
ionsorassi
stancet
hatwi
l
lnot
under
minet
heaut
onomyoft
hecooper
ati
ve.The
Aut
hor
it
y,uponwr
it
tenr
equest
,shal
lpr
ovi
de
necessar
yassi
stancei
nthedocument
ary
r
equi
rement
sfort
hel
oans,
credi
t,gr
ant
s,
donat
ionsandot
herf
inanci
alsuppor
t;

"
(9)Toav
ail
ofpr
efer
ent
ial
right
sgr
ant
edt
o
cooper
ati
vesunderRepubl
i
cActNo.7160,
ot
her
wiseknownast
heLocal
Gov
ernmentCode,
andot
herl
aws,
par
ti
cul
arl
ythosei
nthegr
antof
f
ranchi
sest
oest
abl
i
sh,
const
ruct
,oper
ateand
mai
ntai
nfer
ri
es,
whar
ves,
mar
ket
sor
sl
aught
erhousesandt
oleasepubl
i
cut
il
it
ies,
i
ncl
udi
ngaccesst
oex
tensi
onandon-
sit
e
r
esear
chser
vicesandf
aci
l
iti
esr
elat
edt
o
agr
icul
tur
eandf
isher
yact
ivi
ti
es;
"
(10)Toor
gani
zeandoper
ateschool
sin
accor
dancewi
thRepubl
i
cActNo.9155,
Gov
ernanceofBasi
cEducat
ionActof2001and
ot
herper
ti
nentl
aws;
and

"
(11)Toex
erci
sesuchot
herpower
sgr
ant
edby
t
hisCodeornecessar
ytocar
ryouti
tspur
poseor
pur
posesasst
atedi
nit
sAr
ti
clesofcooper
ati
on.

"
ART.10.Or
gani
zi
ngaPr
imar
yCooper
ati
ve.–
Fi
ft
een(
15)ormor
enat
ural
per
sonswhoar
e
Fi
l
ipi
noci
ti
zens,
ofl
egal
age,
hav
ingacommon
bondofi
nter
estandar
eact
ual
l
yresi
dingor
wor
kingi
nthei
ntendedar
eaofoper
ati
on,
may
or
gani
zeapr
imar
ycooper
ati
veundert
hisCode:
Pr
ovi
ded,
Thatapr
ospect
ivememberofapr
imar
y
cooper
ati
vemusthav
ecompl
etedaPr
e-
Member
shi
pEducat
ionSemi
nar(
PMES)
.

"
Anynewl
yor
gani
zedpr
imar
ycooper
ati
vemaybe
r
egi
ster
edasmul
ti
pur
posecooper
ati
veonl
yaf
ter
compl
i
ancewi
tht
hemi
nimum r
equi
rement
sfor
mul
ti
pur
posecooper
ati
vest
obesetbyt
he
Aut
hor
it
y.Asi
ngl
e-pur
posecooper
ati
vemay
t
ransf
ormi
ntoamul
ti
pur
poseormaycr
eat
e
subsi
diar
iesonl
yaf
teratl
eastt
wo(
2)y
ear
sof
oper
ati
ons.

"
ART.11.Economi
cSur
vey
.-Ev
erygr
oupof
i
ndi
vi
dual
sorcooper
ati
vesi
ntendi
ngt
ofor
ma
cooper
ati
veundert
hisCodeshal
lsubmi
ttot
he
Aut
hor
it
yagener
alst
atementdescr
ibi
ng,
among
ot
her
sthest
ruct
ureandpur
posesoft
hepr
oposed
cooper
ati
ve:
Prov
ided,
Thatt
hest
ruct
ureand
act
ual
staf
fi
ngpat
ter
noft
hecooper
ati
veshal
l
i
ncl
udeabookkeeper
;Pr
ovi
ded,
fur
ther
,Thatt
hey
shal
lnotbeal
l
owedt
ooper
atewi
thoutt
he
necessar
yper
sonnel
andshal
lal
sosubmi
tan
economi
csur
vey
,indi
cat
ingt
her
eint
hear
eaof
oper
ati
on,
thesi
zeofmember
shi
p,andot
her
per
ti
nentdat
ainaf
ormatpr
ovi
dedbyt
he
Aut
hor
it
y.

"
ART.12.Li
abi
l
ity
.–Acooper
ati
vedul
yregi
ster
ed
undert
hisCodeshal
lhav
eli
mit
edl
i
abi
l
ity
.
"
ART.13.Ter
m.–Acooper
ati
veshal
lex
istf
ora
per
iodnotex
ceedi
ngf
if
ty(
50)y
ear
sfr
om t
hedat
e
ofr
egi
str
ati
onunl
esssoonerdi
ssol
veorunl
ess
sai
dper
iodi
sex
tended.Thecooper
ati
vet
erm,
as
or
igi
nal
l
yst
atedi
nthear
ti
clesofcooper
ati
on,
may
beex
tendedf
orper
iodsnotex
ceedi
ngf
if
ty(
50)
y
ear
sinanysi
ngl
einst
ancebyanamendmentof
t
hear
ti
clesofcooper
ati
on,
inaccor
dancewi
tht
his
Code:
Prov
ided,
Thatnoex
tensi
oncanbemade
ear
li
ert
hanf
ive(
5)y
ear
spr
iort
otheor
igi
nal
or
subsequentex
pir
ydat
e/dat
esunl
esst
her
ear
e
j
ust
if
iabl
ereasonsf
oranear
li
erex
tensi
onasmay
bedet
ermi
nedbyt
heAut
hor
it
y.

"
ART.14.Ar
ti
clesofCooper
ati
on.–(
1)Al
l
cooper
ati
vesappl
yi
ngf
orr
egi
str
ati
onshal
lfi
l
e
wi
tht
heAut
hor
it
ythear
ti
clesofcooper
ati
on
whi
chshal
lbesi
gnedbyeachoft
heor
gani
zer
s
andacknowl
edgedbyt
hem i
fnat
ural
per
sons,
and
byt
hechai
rper
sonsorsecr
etar
ies,
ifj
uri
dical
per
sons,
bef
oreanot
arypubl
i
c.

"
(2)Thear
ti
clesofcooper
ati
onshal
lsetf
ort
h:
"
(a)Thenameoft
hecooper
ati
vewhi
chshal
l
i
ncl
udet
hewor
dcooper
ati
ve;

"
(b)Thepur
poseorpur
posesandscopeof
busi
nessf
orwhi
cht
hecooper
ati
vei
stobe
r
egi
ster
ed;

"
(c)Thet
erm ofex
ist
enceoft
hecooper
ati
ve;

"
(d)Thear
eaofoper
ati
onandt
hepost
al
addr
essesofi
tspr
inci
pal
off
ice;

"
(e)Thenames,
nat
ional
i
ty,
andt
hepost
al
addr
essesoft
her
egi
str
ant
s;

"
(f)Thecommonbondofmember
shi
p;

"
(g)Thel
i
stofnamesoft
hedi
rect
orswhoshal
l
managet
hecooper
ati
ve;
and
"
(h)Theamountofi
tsshar
ecapi
tal
,thenames
andr
esi
dencesofi
tscont
ri
but
orsanda
st
atementofwhet
hert
hecooper
ati
vei
spr
imar
y,
secondar
yort
ert
iar
yinaccor
dancewi
thAr
ti
cle23
her
eof
.

"
(3)Thear
ti
clesofcooper
ati
onmayal
socont
ain
anyot
herpr
ovi
sionsnoti
nconsi
stentwi
tht
his
Codeoranyr
elat
edl
aw.

"
(4)Four(
4)copi
eseachoft
hepr
oposedar
ti
cles
ofcooper
ati
on,
byl
aws,
andt
hegener
alst
atement
r
equi
redunderAr
ti
cle11oft
hisCodeshal
lbe
submi
tt
edt
otheAut
hor
it
y.

"
(5)Nocooper
ati
ve,
othert
hanacooper
ati
veuni
on
asdescr
ibedunderAr
ti
cle25her
eof
,shal
lbe
r
egi
ster
edunl
esst
hear
ti
clesofcooper
ati
oni
s
accompani
edwi
tht
hebondsoft
heaccount
abl
e
of
fi
cer
sandaswor
nst
atement
soft
het
reasur
er
el
ect
edbyt
hesubscr
iber
sshowi
ngt
hatatl
east
t
went
y-f
ivepercent
um (
25%)oft
heaut
hor
ized
shar
ecapi
tal
hasbeensubscr
ibedandatl
east
t
went
y-f
ivepercent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeenpai
d:Pr
ovi
ded,
Thati
nno
caseshal
lthepai
d-upshar
ecapi
tal
bel
esst
han
Fi
ft
eent
housandpesos(
P15,
000.
00)
.

"
TheAut
hor
it
yshal
lper
iodi
cal
l
yassesst
he
r
equi
redpai
d-upshar
ecapi
tal
andmayi
ncr
easei
t
ev
eryf
ive(
5)y
ear
swhennecessar
yupon
consul
tat
ionwi
tht
hecooper
ati
vesect
orandt
he
Nat
ional
Economi
candDev
elopmentAut
hor
it
y
(
NEDA)
.

"
ART.15.By
laws.–(
1)Eachcooper
ati
vet
obe
r
egi
ster
edundert
hisCodeshal
ladoptby
lawsnot
i
nconsi
stentwi
tht
hepr
ovi
sionsoft
hisCode.The
by
lawsshal
lbef
il
edatt
hesamet
imeast
he
ar
ti
clesofcooper
ati
on.

"
(2)Theby
lawsofeachcooper
ati
veshal
lpr
ovi
de:

"
(a)Thequal
i
ficat
ionsf
oradmi
ssi
ont
o
member
shi
pandt
hepay
mentt
obemadeor
i
nter
estt
obeacqui
redasacondi
ti
onsf
ort
he
ex
erci
seoft
her
ightofmember
shi
p;

"
(b)Ther
ight
sandl
i
abi
l
iti
esofmember
shi
p;

"
(c)Theci
rcumst
ancesunderwhi
chmember
shi
p
i
sacqui
red,
mai
ntai
nedandl
ost
;

"
(d)Thepr
ocedur
etobef
oll
owedi
ncasesof
t
ermi
nat
ionofmember
shi
p;

"
(e)Thecondi
ti
onsunderwhi
cht
het
ransf
erofa
shar
eori
nter
estoft
hemember
sshal
lbe
per
mit
ted;

"
(f)Ther
ulesandpr
ocedur
esont
heagenda,
time,
pl
aceandmannerofcal
l
ing,
conv
eni
ng,
conduct
ingmeet
ings,
quor
um r
equi
rement
s,
v
oti
ngsy
stems,
andot
hermat
ter
srel
ati
vet
othe
busi
nessaf
fai
rsoft
hegener
alassembl
y,boar
dof
di
rect
ors,
andcommi
tt
ees;
"
(g)Thegener
alconductoft
heaf
fai
rsoft
he
cooper
ati
ve,
incl
udi
ngt
hepower
sanddut
iesof
t
hegener
alassembl
y,t
heboar
dofdi
rect
ors,
commi
tt
eesandt
heof
fi
cer
s,andt
hei
r
qual
i
ficat
ionsanddi
squal
i
ficat
ions;

"
(h)Themanneri
nwhi
cht
hecapi
tal
,maybe
r
aisedandt
hepur
posesf
orwhi
chi
tcanbe
ut
il
iz
ed;

"
(i
)Themodeofcust
odyandofi
nvest
mentofnet
sur
plus;

"
(j
)Theaccount
ingandaudi
ti
ngsy
stems;

"
(k)Themannerofl
oani
ngandbor
rowi
ng
i
ncl
udi
ngt
hel
i
mit
ati
onst
her
eof
;

"
(l
)Themet
hodofdi
str
ibut
ionofnetsur
plus;
"
(m)Themannerofadopt
ing,
amendi
ng,
repeal
i
ng,
andabr
ogat
ingby
laws;

"
(n)Aconci
l
iat
ionormedi
ati
onmechani
sm f
ort
he
ami
cabl
eset
tl
ementofdi
sput
esamongmember
s,
di
rect
ors,
off
icer
sandcommi
tt
eemember
soft
he
cooper
ati
ve;
and

"
(o)Ot
hermat
ter
sinci
dentt
othepur
posesand
act
ivi
ti
esoft
hecooper
ati
ve.

"
ART.16.Regi
str
ati
on.–Acooper
ati
vef
ormed
andor
gani
zedundert
hisCodeacqui
resj
uri
dical
per
sonal
i
tyf
rom t
hedat
etheAut
hor
it
yissuesa
cer
ti
fi
cat
eofr
egi
str
ati
onunderi
tsof
fi
cial
seal
.Al
l
appl
i
cat
ionsf
orr
egi
str
ati
onshal
lbef
inal
l
y
di
sposedofbyt
heAut
hor
it
ywi
thi
naper
iodof
si
xty(
60)day
sfr
om t
hef
il
ingt
her
eof
,ot
her
wise
t
heappl
i
cat
ioni
sdeemedappr
oved,
unl
esst
he
causeoft
hedel
ayi
sat
tr
ibut
abl
etot
heappl
i
cant
:
Pr
ovi
ded,
Thati
ncaseofadeni
aloft
he
appl
i
cat
ionf
orr
egi
str
ati
on,
anappeal
shal
ll
iewi
th
t
heOf
fi
ceoft
hePr
esi
dentwi
thi
nni
net
y(90)day
s
f
rom r
ecei
ptofnot
iceofsuchdeni
al:
Prov
ided,
f
urt
her
,Thatf
ail
ureoft
heOf
fi
ceoft
hePr
esi
dent
t
oactont
heappeal
wit
hinni
net
y(90)day
sfr
om
t
hef
il
ingt
her
eofshal
lmeanappr
oval
ofsai
d
appl
i
cat
ion.

"
ART.17.Cer
ti
fi
cat
eofRegi
str
ati
on.–Acer
ti
fi
cat
e
ofr
egi
str
ati
oni
ssuedbyt
heAut
hor
it
yunderi
ts
of
fi
cial
seal
shal
lbeconcl
usi
veev
idencet
hatt
he
cooper
ati
vet
her
einment
ionedi
sdul
yregi
ster
ed
unl
essi
tispr
ovedt
hatt
her
egi
str
ati
ont
her
eofhas
beencancel
l
ed.

"
ART.18.AmendmentofAr
ti
clesofCooper
ati
on
andBy
laws.–Unl
essot
her
wisepr
escr
ibedbyt
his
Codeandf
orl
egi
ti
mat
epur
poses,
anypr
ovi
sionor
mat
terst
atedi
nthear
ti
clesofcooper
ati
onandby
l
awsmaybeamendedbyt
wo-
thi
rds(
2/3)v
oteof
al
lthemember
swi
thv
oti
ngr
ight
s,wi
thout
pr
ejudi
cet
other
ightoft
hedi
ssent
ingmember
s
t
oex
erci
set
hei
rri
ghtt
owi
thdr
awt
hei
r
member
shi
punderAr
ti
cle30.
Bot
htheor
igi
nal
andamendedar
ti
clesand/
or
by
lawsshal
lcont
ainal
lpr
ovi
sionsr
equi
redbyl
aw
t
obesetouti
nthear
ti
clesofcooper
ati
onandby
l
aws.Amendment
sshal
lbei
ndi
cat
edby
under
scor
ingorot
her
wiseappr
opr
iat
elyi
ndi
cat
ing
t
hechangeorchangesmadeandacopyoft
he
amendedar
ti
clesoramendedby
lawsdul
y
cer
ti
fi
edunderoat
hbyt
hecooper
ati
vesecr
etar
y
andamaj
ori
tyoft
hedi
rect
orsst
ati
ngt
hef
actt
hat
sai
damendmentoramendment
stot
hear
ti
clesof
cooper
ati
onand/
orby
lawshav
ebeendul
y
appr
ovedbyt
her
equi
redv
oteoft
hemember
s.Al
l
amendment
stot
hear
ti
cleofcooper
ati
onand/
or
by
lawsshal
lbesubmi
tt
edt
otheAut
hor
it
y.The
amendment
sshal
ltakeef
fectuponi
tsappr
oval
byt
heaut
hor
it
yorwi
thi
nthi
rt
y(30)day
sfr
om t
he
dat
eoff
il
ingt
her
eofi
fnotact
eduponbyt
he
Aut
hor
it
yforacausenotat
tr
ibut
abl
etot
he
cooper
ati
ve.

"
ART.19.Cont
ract
sEx
ecut
edPr
iort
oRegi
str
ati
on
andEf
fect
sTher
eof
.–Cont
ract
sex
ecut
ed
bet
weenpr
ivat
eper
sonsandcooper
ati
vespr
iort
o
t
her
egi
str
ati
onoft
hecooper
ati
veshal
lremai
n
v
ali
dandbi
ndi
ngbet
weent
hepar
ti
esandupon
r
egi
str
ati
onoft
hecooper
ati
ve.Af
ormal
wri
tt
en
cont
ractshal
lbeadopt
edandmadei
nthe
cooper
ati
ve’
snameoroni
tsbehal
fpr
iort
oit
s
r
egi
str
ati
on.

"
ART.20.Di
vi
sionofCooper
ati
ves.–Any
r
egi
ster
edcooper
ati
vemay
,byar
esol
uti
on
appr
ovedbyav
oteoft
hree-
four
ths(
3/4)ofal
lthe
member
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um,
resol
vet
odi
vi
dei
tsel
fint
o
t
het
wo(
2)ormor
ecooper
ati
ves.Thepr
ocedur
e
f
orsuchdi
vi
sionshal
lbepr
escr
ibedi
nthe
r
egul
ati
onsoft
heAut
hor
it
y:Pr
ovi
ded,
Thatal
lthe
r
equi
rement
ssetf
ort
hint
hisCodehav
ebeen
compl
i
edwi
thbyt
henewcooper
ati
ves:
Prov
ided,
f
urt
her
,Thatnodi
vi
sionofacooper
ati
vei
nfr
aud
ofcr
edi
tor
sshal
lbev
ali
d.

"
ART.21.Mer
gerandConsol
i
dat
ionof
Cooper
ati
ves.–(
1)Two(
2)ormor
ecooper
ati
ves
maymer
gei
ntoasi
ngl
ecooper
ati
vewhi
chshal
l
ei
therbeoneoft
heconst
it
uentcooper
ati
vesor
t
heconsol
i
dat
edcooper
ati
ve.

"
(2)Nomer
gerorconsol
i
dat
ionshal
lbev
ali
d
unl
essappr
ovedbyat
hree-
four
ths(
3/4)v
oteof
al
lthemember
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um ofeachoft
heconst
it
uent
cooper
ati
vesatsepar
ategener
alassembl
y
meet
ings.Thedi
ssent
ingmember
sshal
lhav
ethe
r
ightt
oex
erci
set
hei
rri
ghtt
owi
thdr
awt
hei
r
member
shi
ppur
suantt
oAr
ti
cle30.

"
(3)TheAut
hor
it
yshal
li
ssuet
hegui
del
i
nes
gov
erni
ngt
hepr
ocedur
eofmer
geror
consol
i
dat
ionofcooper
ati
ves.I
nanycase,
the
mer
gerorconsol
i
dat
ionofcooper
ati
ves.I
nany
case,
themer
gerorconsol
i
dat
ionshal
lbe
ef
fect
iveupont
hei
ssuanceoft
hecer
ti
fi
cat
eof
mer
gerorconsol
i
dat
ionbyt
heAut
hor
it
y.

"
ART.22.Ef
fect
sofMer
gerandConsol
i
dat
ion.–
Themer
gerorconsol
i
dat
ionofcooper
ati
vesshal
l
hav
ethef
oll
owi
ngef
fect
s:
"
(1)Theconst
it
uentcooper
ati
vesshal
lbecomea
si
ngl
ecooper
ati
vewhi
ch,
incaseofmer
ger
,shal
l
bet
hesur
viv
ingcooper
ati
ve,
and,
incaseof
consol
i
dat
ion,
shal
lbet
heconsol
i
dat
ed
cooper
ati
ve;

"
(2)Thesepar
ateex
ist
enceoft
heconst
it
uent
cooper
ati
vesshal
lcease,
exceptt
hatoft
he
sur
viv
ingort
heconsol
i
dat
edcooper
ati
ve;

"
(3)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lpossessal
theasset
s,r
ight
s,pr
ivi
l
eges,
i
mmuni
ti
esandf
ranchi
sesofeachoft
he
const
it
uentcooper
ati
ves;

"
(4)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lpossessal
ltheasset
s,r
ight
s,pr
ivi
l
eges,
i
mmuni
ti
esandf
ranchi
sesofeachoft
he
const
it
uentcooper
ati
ves;
and

"
(5)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lber
esponsi
blef
oral
lthel
i
abi
l
iti
esand
obl
i
gat
ionofeachoft
heconst
it
uentcooper
ati
ves
i
nthesamemannerasi
fsuchsur
viv
ingor
consol
i
dat
edcooper
ati
vehadi
tsel
fincur
redsuch
l
i
abi
l
iti
esorobl
i
gat
ions.Anycl
aim,
act
ionor
pr
oceedi
ngpendi
ngbyoragai
nstanysuch
const
it
uentcooper
ati
vesmaybepr
osecut
edbyor
agai
nstt
hesur
viv
ingorconsol
i
dat
edcooper
ati
ve,
ast
hecasemaybe.Nei
thert
her
ight
sofcr
edi
tor
s
noranyl
i
enupont
hepr
oper
tyofanysuch
const
it
uentcooper
ati
vesshal
lbei
mpai
redby
suchmer
gerorconsol
i
dat
ion.

"
ART.23.Ty
peandCat
egor
iesofCooper
ati
ves.–
(
1)Ty
pesofCooper
ati
ves–Cooper
ati
vesmayf
all
underanyoft
hef
oll
owi
ngt
ypes:

"
(a)Cr
edi
tCooper
ati
vei
sonet
hatpr
omot
esand
under
takessav
ingsandl
endi
ngser
vicesamong
i
tsmember
s.I
tgener
atesacommonpool
of
f
undsi
nor
dert
opr
ovi
def
inanci
alassi
stancet
o
i
tsmember
sforpr
oduct
iveandpr
ovi
dent
pur
poses;
"
(b)Consumer
sCooper
ati
vei
soneoft
hepr
imar
y
pur
poseofwhi
chi
stopr
ocur
eanddi
str
ibut
e
commodi
ti
est
omember
sandnon-
member
s;

"
(c)Pr
oducer
sCooper
ati
vei
sonet
hatunder
takes
j
ointpr
oduct
ionwhet
heragr
icul
tur
alori
ndust
ri
al.
I
tisf
ormedandoper
atedbyi
tsmember
sto
under
taket
hepr
oduct
ionandpr
ocessi
ngofr
aw
mat
eri
alsorgoodspr
oducedbyi
tsmember
sint
o
f
ini
shedorpr
ocessedpr
oduct
sforsal
ebyt
he
cooper
ati
vet
oit
smember
sandnon-
member
s.
Anyendpr
oductori
tsder
ivat
ivear
isi
ngf
rom t
he
r
awmat
eri
alspr
oducedbyi
tsmember
s,sol
din
t
henameandf
ort
heaccountoft
hecooper
ati
ve,
shal
lbedeemedapr
oductoft
hecooper
ati
veand
i
tsmember
s;

"
(d)Mar
ket
ingCooper
ati
vei
sonewhi
chengages
i
nthesuppl
yofpr
oduct
ioni
nput
stomember
sand
mar
ket
sthei
rpr
oduct
s;
"
(e)Ser
viceCooper
ati
vei
sonewhi
chengagesi
n
medi
cal
anddent
alcar
e,hospi
tal
i
zat
ion,
t
ranspor
tat
ion,
insur
ance,
housi
ng,
labor
,el
ect
ri
c
l
i
ghtandpower
,communi
cat
ion,
prof
essi
onal
and
ot
herser
vices;

"
(f)Mul
ti
pur
poseCooper
ati
vei
sonewhi
ch
combi
nest
wo(
2)ormor
eoft
hebusi
ness
act
ivi
ti
esoft
hesedi
ff
erentt
ypesofcooper
ati
ves;

"
(g)Adv
ocacyCooper
ati
vei
sapr
imar
y
cooper
ati
vewhi
chpr
omot
esandadv
ocat
es
cooper
ati
vi
sm amongi
tsmember
sandt
hepubl
i
c
t
hroughsoci
all
y-
ori
ent
edpr
oject
s,educat
ionand
t
rai
ning,
resear
chandcommuni
cat
ion,
andot
her
si
mil
aract
ivi
ti
est
oreachoutt
oit
sint
ended
benef
ici
ari
es;

"
(h)Agr
ari
anRef
orm Cooper
ati
vei
soneor
gani
zed
bymar
ginal
far
mer
smaj
ori
tyofwhi
char
e
agr
ari
anr
efor
m benef
ici
ari
esf
ort
hepur
poseof
dev
elopi
nganappr
opr
iat
esy
stem ofl
andt
enur
e,
l
anddev
elopment
,landconsol
i
dat
ionorl
and
managementi
nar
eascov
eredbyagr
ari
anr
efor
m;

"
(i
)Cooper
ati
veBanki
soneor
gani
zedf
ort
he
pr
imar
ypur
poseofpr
ovi
dingawi
der
angeof
f
inanci
alser
vicest
ocooper
ati
vesandt
hei
r
member
s;

"
(j
)Dai
ryCooper
ati
vei
sonewhosemember
sar
e
engagedi
nthepr
oduct
ionoff
reshmi
l
kwhi
ch
maybepr
ocessedand/
ormar
ket
edasdai
ry
pr
oduct
s;

"
(k)Educat
ionCooper
ati
vei
soneor
gani
zedf
ort
he
pr
imar
ypur
poseofowni
ngandoper
ati
ngl
i
censed
educat
ional
inst
it
uti
onsnot
wit
hst
andi
ngt
he
pr
ovi
sionsofRepubl
i
cActNo.9155,
other
wise
knownast
heGov
ernanceofBasi
cEducat
ionAct
of2001;

"
(l
)El
ect
ri
cCooper
ati
vei
soneor
gani
zedf
ort
he
pr
imar
ypur
posedofunder
taki
ngpower
gener
ati
ons,
uti
l
izi
ngr
enewabl
eener
gysour
ces,
i
ncl
udi
nghy
bri
dsy
stems,
acqui
sit
ionand
oper
ati
onofsubt
ransmi
ssi
onordi
str
ibut
iont
oit
s
househol
dmember
s;

"
(m)Fi
nanci
alSer
viceCooper
ati
vei
sone
or
gani
zedf
ort
hepr
imar
ypur
poseofengagi
ngi
n
sav
ingsandcr
edi
tser
vicesandot
herf
inanci
al
ser
vices;

"
(n)Fi
sher
menCooper
ati
vei
soneor
gani
zedby
mar
ginal
i
zedf
isher
meni
nlocal
i
tieswhose
pr
oduct
sar
emar
ket
edei
therasf
reshor
pr
ocessedpr
oduct
s;

"
(o)Heal
thSer
vicesCooper
ati
vei
soneor
gani
zed
f
ort
hepr
imar
ypur
poseofpr
ovi
dingmedi
cal
,
dent
alandot
herheal
thser
vices;

"
(p)Housi
ngCooper
ati
vei
soneor
gani
zedt
o
assi
storpr
ovi
deaccesst
ohousi
ngf
ort
hebenef
it
ofi
tsr
egul
armember
swhoact
ivel
ypar
ti
cipat
ein
t
hesav
ingspr
ogr
am f
orhousi
ng.I
tisco-
owned
andcont
rol
l
edbyi
tsmember
s;

"
(q)I
nsur
anceCooper
ati
vei
soneengagedi
nthe
busi
nessofi
nsur
ingl
i
feandpov
ert
yof
cooper
ati
vesandt
hei
rmember
s;

"
(r)Tr
anspor
tCooper
ati
vei
sonewhi
chi
ncl
udes
l
andandseat
ranspor
tat
ion,
li
mit
edt
osmal
l
v
essel
s,asdef
inedorcl
assi
fi
edundert
he
Phi
l
ippi
nemar
it
imel
aws,
organi
zedundert
he
pr
ovi
sionsoft
hisCode;

"
(s)Wat
erSer
viceCooper
ati
vei
soneor
gani
zedt
o
own,
oper
ateandmanagewat
erssy
stemsf
ort
he
pr
ovi
sionanddi
str
ibut
ionofpot
abl
ewat
erf
ori
ts
member
sandt
hei
rhousehol
ds;

"
(t
)Wor
ker
sCooper
ati
vei
soneor
gani
zedby
wor
ker
s,i
ncl
udi
ngt
hesel
f-
empl
oyed,
whoar
eat
samet
imet
hemember
sandowner
soft
he
ent
erpr
ise.I
tspr
inci
pal
pur
posei
stopr
ovi
de
empl
oymentandbusi
nessoppor
tuni
ti
est
oit
s
member
sandmanagei
tinaccor
dancewi
th
cooper
ati
vepr
inci
ples;
and

"
(u)Ot
hert
ypesofcooper
ati
veasmaybe
det
ermi
nedbyt
heAut
hor
it
y.

"
(2)Cat
egor
iesofCooper
ati
ve–Cooper
ati
ves
shal
lbecat
egor
izedaccor
dingt
omember
shi
p
andt
err
it
ori
alconsi
der
ati
onsasf
oll
ows:

"
(a)I
nter
msofmember
shi
p,cooper
ati
veshal
lbe
cat
egor
izedi
nto:

"
(i
)Pr
imar
y–Themember
sofwhi
char
enat
ural
per
sons;

"
(i
i)Secondar
y–Themember
sofwhi
char
e
pr
imar
ies;
and

"
(i
ii
)Ter
ti
ary–Themember
sofwhi
char
e
secondar
ycooper
ati
ves;
and
"
(b)I
nter
msoft
err
it
ory
,cooper
ati
vesshal
lbe
cat
egor
izedaccor
dingt
oar
easofoper
ati
ons
whi
chmayormaynotcoi
nci
dewi
tht
hepol
i
tical
subdi
vi
sionsoft
hecount
ry.

"
ART.24.Funct
ionsofaFeder
ati
onof
Cooper
ati
ves.–Af
eder
ati
onofcooper
ati
vesshal
l
under
taket
hef
oll
owi
ngf
unct
ions:

"
(a)Tocar
ryonanycooper
ati
veent
erpr
ise
aut
hor
izedunderAr
ti
cle6t
hatcompl
ement
s
augment
s,orsuppl
ement
sbutdoesnotconf
li
ct,
compl
etewi
th,
norsuppl
antt
hebusi
nessor
economi
cact
ivi
ti
esofi
tsmember
s;

"
(b)Tocar
ryon,
encour
age,
andassi
steducat
ional
andadv
isor
ywor
krel
ati
ngt
oit
smember
cooper
ati
ves;

"
(c)Tor
enderser
vicesdesi
gnedt
oencour
age
si
mpl
i
cit
y,ef
fi
ciency
,andeconomyi
ntheconduct
oft
hebusi
nessofi
tsmembercooper
ati
vesandt
o
f
aci
l
itat
ethei
mpl
ement
ati
onoft
hei
rbookkeepi
ng,
account
ing,
andot
hersy
stemsandpr
ocedur
es;

"
(d)Topr
int
,publ
i
sh,
andci
rcul
ateanynewspaper
orot
herpubl
i
cat
ioni
nthei
nter
estofi
tsmember
cooper
ati
vesandent
erpr
ises;

"
(e)Tocoor
dinat
eandf
aci
l
itat
etheact
ivi
ti
esofi
ts
membercooper
ati
ves;

"
(f)Toent
eri
ntoj
ointv
ent
ureswi
thnat
ional
or
i
nter
nat
ional
cooper
ati
vesofot
hercount
ri
esi
n
t
hemanuf
act
ureandsal
eofpr
oduct
sand/
or
ser
vicesi
nthePhi
l
ippi
nesandabr
oad;
and

"
(g)Toper
for
m suchot
herf
unct
ionsasmaybe
necessar
ytoat
tai
nit
sobj
ect
ives.

"
Afeder
ati
onofcooper
ati
vesmayber
egi
ster
edby
car
ryi
ngoutt
hef
ormal
i
tiesf
orr
egi
str
ati
onofa
cooper
ati
ve.

"
Regi
ster
edcooper
ati
vesmayor
gani
zea
f
eder
ati
onaccor
dingt
othet
ypeofbusi
ness
act
ivi
tyengagedi
nbyt
hecooper
ati
ves.

"
ART.25.Cooper
ati
veUni
ons.–Regi
ster
ed
cooper
ati
vesandf
eder
ati
onsatt
heappr
opr
iat
e
l
evel
smayor
gani
zeorj
oincooper
ati
veuni
onst
o
r
epr
esentt
hei
nter
estandwel
far
eofal
lty
pesof
cooper
ati
vesatt
hepr
ovi
nci
al,
cit
y,r
egi
onal
,and
nat
ional
lev
els.Cooper
ati
veuni
onsmayhav
ethe
f
oll
owi
ngpur
poses:

"
(a)Tor
epr
esenti
tsmemberor
gani
zat
ions;

"
(b)Toacqui
re,
anal
yze,
anddi
ssemi
nat
e,
economi
c,st
ati
sti
cal
,andot
heri
nfor
mat
ion
r
elat
ingt
oit
smember
sandt
oal
lty
pesof
cooper
ati
veswi
thi
nit
sar
eaofoper
ati
on;
"
(c)Tosponsorst
udi
esi
ntheeconomi
c,l
egal
,
f
inanci
al,
soci
alandot
herphasesofcooper
ati
on,
andpubl
i
sht
her
esul
tst
her
eof
;

"
(d)Topr
omot
etheknowl
edgeofcooper
ati
ve
pr
inci
plesandpr
act
ices;

"
(e)Todev
elopt
hecooper
ati
vemov
ementi
nthei
r
r
espect
ivej
uri
sdi
cti
ons;

"
(f)Toadv
iset
heappr
opr
iat
eaut
hor
it
iesonal
l
quest
ionsr
elat
ingt
ocooper
ati
ves;

"
(g)Tor
aisef
undst
hroughmember
shi
pfees,
dues
andcont
ri
but
ions,
donat
ions,
andsubsi
diesf
rom
l
ocal
andf
orei
gnsour
ceswhet
herpr
ivat
eor
gov
ernment
;and

"
(h)Todoandper
for
m suchot
hernon-
busi
ness
act
ivi
ti
esasmaybenecessar
ytoat
tai
nthe
f
oregoi
ngobj
ect
ives.
"
Cooper
ati
veuni
onsmayassi
stt
henat
ional
and
l
ocal
gov
ernment
sint
hel
att
er’
sdev
elopment
act
ivi
ti
esi
nthei
rrespect
ivej
uri
sdi
cti
ons.
"

SEC.3.Ar
ti
cles26,
27,
28,
29,
30,
31and32of
Chapt
erI
IIonMember
shi
poft
hesameCodear
e
her
ebyr
enumber
edandamendedt
oread,
as
f
oll
ows:

CHAPTERI
II
MEMBERSHI
P

"
ART.26.Ki
ndsofMember
shi
p.–Acooper
ati
ve
mayhav
etwo(
2)ki
ndsofmember
s,t
owi
t:(
1)
r
egul
armember
sand(
2)associ
atemember
s.

"
Aregul
armemberi
sonewhohascompl
i
edwi
th
al
lthemember
shi
prequi
rement
sandent
it
ledt
o
al
lther
ight
sandpr
ivi
l
egesofmember
shi
p.An
associ
atememberi
sonewhohasnor
ightt
ovot
e
norbev
oteduponandshal
lbeent
it
ledonl
yto
suchr
ight
sandpr
ivi
l
egesast
heby
lawsmay
pr
ovi
de:
Prov
ided,
Thatanassoci
atewhomeet
s
t
hemi
nimum r
equi
rement
sofr
egul
ar
member
shi
p,cont
inuest
opat
roni
zet
he
cooper
ati
vef
ort
wo(
2)y
ear
s,andsi
gni
fi
eshi
s/her
i
ntent
iont
oremai
namembershal
lbeconsi
der
ed
ar
egul
armember
.

"
Acooper
ati
veor
gani
zedbymi
nor
sshal
lbe
consi
der
edal
abor
ator
ycooper
ati
veandmustbe
af
fi
li
atedwi
thar
egi
ster
edcooper
ati
ve.A
l
abor
ator
ycooper
ati
veshal
lbegov
ernedby
speci
algui
del
i
nest
obepr
omul
gat
edbyt
he
Aut
hor
it
y.

"
ART.27.Gov
ernmentOf
fi
cer
sandEmpl
oyees.–
(
1)Anyof
fi
cerorempl
oyeeoft
heAut
hor
it
yshal
l
bedi
squal
i
fiedt
obeel
ect
edorappoi
ntedt
oany
posi
ti
oni
nacooper
ati
ve:
Prov
ided,
Thatt
he
di
squal
i
ficat
iondoesnotex
tendt
oacooper
ati
ve
or
gani
zedbyt
heof
fi
cer
sorempl
oyeesoft
he
Aut
hor
it
y.
"
(2)Al
lel
ect
iveof
fi
cial
soft
heGov
ernmentshal
l
bei
nel
i
gibl
etobecomeof
fi
cer
sanddi
rect
orsof
cooper
ati
ves:
Prov
ided,
Thatt
hedi
squal
i
ficat
ion
doesnotex
tendt
oapar
tyl
i
str
epr
esent
ati
ve
bei
nganof
fi
cerofacooper
ati
veheorshe
r
epr
esent
s;and

"
(3)Anygov
ernmentempl
oyeeorof
fi
cial
may
,in
t
hedi
schar
geofi
sdut
iesasamemberi
nthe
cooper
ati
ve,
beal
l
owedbyt
heendofof
fi
ce
concer
nedt
ouseof
fi
cial
timef
orat
tendanceat
t
hegener
alassembl
y,boar
dandcommi
tt
ee
meet
ingsofcooper
ati
vesaswel
lascooper
ati
ve
semi
nar
s,conf
erences,
wor
kshops,
techni
cal
meet
ings,
andt
rai
ningcour
sesl
ocal
l
yorabr
oad:
Pr
ovi
ded,
Thatt
heoper
ati
onsoft
heof
fi
ce
concer
nedar
enotadv
ersel
yaf
fect
ed.

"
ART.28.Appl
i
cat
ion.–Anappl
i
cantf
or
member
shi
pshal
lbedeemedamemberaf
ter
appr
oval
ofhi
smember
shi
pbyt
heboar
dof
di
rect
orsandshal
lex
erci
set
her
ight
sofmember
af
terhav
ingmadesuchpay
ment
stot
he
cooper
ati
vei
nrespectt
omember
shi
poracqui
red
i
nter
esti
nthecooper
ati
veasmaybepr
escr
ibedi
n
t
heby
laws.I
ncasemember
shi
pisr
efusedor
deni
edbyt
heboar
dofdi
rect
ors,
anappeal
maybe
madet
othegener
alassembl
yandt
hel
att
er’
s
deci
sionshal
lbef
inal
.Fort
hispur
pose,
the
gener
alassembl
ymayoptt
ocr
eat
eanappeal
and
gr
iev
ancecommi
tt
ee,
themember
sofwhi
chshal
l
ser
vef
oraper
iodofone(
1)y
earandshal
ldeci
de
appeal
sonmember
shi
pappl
i
cat
ionwi
thi
nthi
rt
y
(
30)day
suponr
ecei
ptt
her
eof
.Ift
hecommi
tt
ee
f
ail
stodeci
dewi
thi
nthepr
escr
ibedper
iod,
the
appeal
isdeemedappr
ovedi
nfav
oroft
he
appl
i
cant
.

"
ART.29.Li
abi
l
ityofMember
s.–Amembershal
l
bel
i
abl
efort
hedebt
soft
hecooper
ati
vet
othe
ex
tentofhi
scont
ri
but
iont
otheshar
ecapi
tal
of
t
hecooper
ati
ve.

"
ART.30.Ter
minat
ionofMember
shi
p.–(
1)A
memberofacooper
ati
vemay
,foranyv
ali
d
r
eason,
wit
hdr
awhi
smember
shi
pfr
om t
he
cooper
ati
vebygi
vi
ngasi
xty(
60)daynot
icet
othe
boar
dofdi
rect
ors.Subj
ectt
otheby
lawsoft
he
cooper
ati
ve,
thewi
thdr
awi
ngmembershal
lbe
ent
it
ledt
oar
efundofhi
sshar
ecapi
tal
cont
ri
but
ionandal
lot
heri
nter
est
sint
he
cooper
ati
ve:
Prov
ided,
Thatsuchf
undshal
lnotbe
madei
fuponsuchpay
mentt
hev
alueoft
he
asset
soft
hecooper
ati
vewoul
dbel
esst
hant
he
aggr
egat
eamountofi
tsdebt
sandl
i
abi
l
iti
es
ex
clusi
veofhi
sshar
ecapi
tal
cont
ri
but
ion.

"
(2)Thedeat
hori
nsani
tyofamemberi
napr
imar
y
cooper
ati
ve,
andt
hei
nsol
vencyordi
ssol
uti
onofa
memberi
nasecondar
yort
ert
iar
ycooper
ati
ve
maybeconsi
der
edv
ali
dgr
oundsf
ort
ermi
nat
ion
ofmember
shi
p:Pr
ovi
ded,
Thati
ncaseofdeat
hor
i
nsani
tyofanagr
ari
anr
efor
m benef
ici
ary
-member
ofacooper
ati
ve,
thenex
t-of
-ki
nmayassumet
he
dut
iesandr
esponsi
bil
i
tiesoft
heor
igi
nal
member

"
(3)Member
shi
pint
hecooper
ati
vemaybe
t
ermi
nat
edbyav
oteoft
hemaj
ori
tyofal
lthe
member
soft
heboar
dofdi
rect
orsf
oranyoft
he
f
oll
owi
ngcauses:

"
(a)Whenamemberhasnotpat
roni
zedanyoft
he
ser
vicesoft
hecooper
ati
vef
oranunr
easonabl
e
per
iodoft
imeasmaybepr
evi
ousl
ydet
ermi
nedby
t
heboar
dofdi
rect
ors;

"
(b)Whenamemberhascont
inuousl
yfai
l
edt
o
compl
ywi
thhi
sobl
i
gat
ions;

"
(c)Whenamemberhasact
edi
nvi
olat
ionoft
he
by
lawsandt
her
ulesoft
hecooper
ati
ve;
and

"
(d)Foranyactoromi
ssi
oni
njur
iousorpr
ejudi
cial
t
othei
nter
estort
hewel
far
eoft
hecooper
ati
ve.

"
Amemberwhosemember
shi
ptheboar
dof
di
rect
orsmaywi
sht
oter
minat
eshal
lbei
nfor
med
ofsuchi
ntendedact
ioni
nwr
it
ingandshal
lbe
gi
venanoppor
tuni
tyt
obehear
dbef
oret
hesai
d
boar
dmakesi
tsdeci
sion.Thedeci
sionoft
he
boar
dshal
lbei
nwr
it
ingandshal
lbe
communi
cat
edi
nper
sonorbyr
egi
ster
edmai
lto
sai
dmemberandshal
lbeappeal
abl
ewi
thi
nthi
rt
y
(
30)day
sfr
om r
ecei
ptt
her
eoft
othegener
al
assembl
ywhosedeci
sionshal
lbef
inal
.The
gener
alassembl
ymaycr
eat
eanappeal
and
gr
iev
ancecommi
tt
eewhosemember
sshal
lser
ve
f
oraper
iodofone(
1)y
earandshal
ldeci
de
appeal
sonmember
shi
pter
minat
ion.The
commi
tt
eei
sgi
vent
hir
ty(
30)day
sfr
om r
ecei
pt
t
her
eoft
odeci
deont
heappeal
.Fai
l
uret
odeci
de
wi
thi
nthepr
escr
ibedper
iod,
theappeal
isdeemed
appr
ovedi
nfav
oroft
hemember
.Pendi
nga
deci
sionbyt
hegener
alassembl
y,t
he
member
shi
premai
nsi
nfor
ce.

"
ART.31.Ref
undofI
nter
est
s.–Al
lsums
comput
edi
naccor
dancewi
tht
heby
lawst
obe
duef
rom acooper
ati
vet
oaf
ormermembershal
l
bepai
dtohi
m ei
therbyt
hecooper
ati
veorbyt
he
appr
ovedt
ransf
eree,
ast
hecasemaybe,
in
accor
dancewi
tht
hisCode.
"
SEC.4.Ar
ti
cles33,
34,
35,
36,
37,
38,
39,
40,
42,
42,
43,
44,
45,
46,
47,
48,
49,
50and51ofChapt
erI
V
onAdmi
nist
rat
ionoft
hesameCodear
eher
eby
r
enumber
edandamendedt
oread,
asf
oll
ows:

CHAPTERI
V
ADMI
NISTRATI
ON

"
ART.32.Composi
ti
onoft
heGener
alAssembl
y.–
Thegener
alassembl
yshal
lbecomposedofsuch
member
swhoar
eent
it
ledt
ovot
eundert
he
ar
ti
clesofcooper
ati
onandby
lawsoft
he
cooper
ati
ve.

"
ART.32.Power
soft
heGener
alAssembl
y.–The
gener
alassembl
yshal
lbecomposedofsuch
member
swhoar
eent
it
ledt
ovot
eundert
he
ar
ti
clesofcooper
ati
onandby
lawsoft
he
cooper
ati
ve.
"
ART.33.Power
soft
heGener
alAssembl
y.–The
gener
alassembl
yshal
lbet
hehi
ghestpol
i
cy-
maki
ngbodyoft
hecooper
ati
veandshal
lex
erci
se
suchpower
sasar
est
atedi
nthi
sCode,
int
he
ar
ti
clesofcooper
ati
onandi
ntheby
lawsoft
he
cooper
ati
ve.Thegener
alassembl
yshal
lhav
ethe
f
oll
owi
ngex
clusi
vepower
swhi
chcannotbe
del
egat
e:

"
(1)Todet
ermi
neandappr
oveamendment
stot
he
ar
ti
clesofcooper
ati
onandby
laws;

"
(2)Toel
ectorappoi
ntt
hemember
soft
heboar
d
ofdi
rect
ors,
andt
oremov
ethem f
orcause.
Howev
er,
int
hecaseoft
heel
ect
ri
ccooper
ati
ves
r
egi
ster
edundert
hisCode,
elect
ionoft
he
member
soft
heboar
dshal
lbehel
dinaccor
dance
wi
thi
tsby
lawsorel
ect
iongui
del
i
neofsuch
el
ect
ri
ccooper
ati
ve;
and

"
(3)Toappr
ovedev
elopment
alpl
ansoft
he
cooper
ati
ve.
"
Subj
ectt
osuchot
herpr
ovi
sionsoft
hisCodeand
onl
yforpur
posesofpr
omptandi
ntel
l
igent
deci
sion-
maki
ng,
thegener
alassembl
ymaybea
t
hree-
four
ths(
3/4)v
oteofal
li
tsmember
swi
th
v
oti
ngr
ight
s,pr
esentandconst
it
uti
ngaquor
um,
del
egat
esomeofi
tspower
stoasmal
l
erbodyof
t
hecooper
ati
ve.Thesepower
sshal
lbe
enumer
atedundert
heby
lawsoft
hecooper
ati
ve.

"
ART.34.Meet
ings.–(
1)Ar
egul
armeet
ingshal
l
behel
dannual
l
ybyt
hegener
alassembl
yona
dat
efi
xedi
ntheby
laws,
ori
fnotsof
ixed,
onany
dat
edwi
thi
nni
net
y(90)day
saf
tert
hecl
oseof
eachf
iscal
year
:Pr
ovi
ded,
Thatnot
iceofr
egul
ar
meet
ingsshal
lbesenti
nwr
it
ing,
bypost
ingor
publ
i
cat
ion,
ort
hroughot
herel
ect
roni
cmeanst
o
al
lmember
sofr
ecor
d.

"
(2)Whenev
ernecessar
y,aspeci
almeet
ingoft
he
gener
alassembl
ymaybecal
l
edatanyt
imebya
maj
ori
tyv
oteoft
heboar
dofdi
rect
orsoras
pr
ovi
dedf
ori
ntheby
laws:
Prov
ided,
Thatanot
ice
i
nwr
it
ingshal
lbesentone(
1)weekpr
iort
othe
meet
ingt
oal
lmember
swhoar
eent
it
ledt
ovot
e.
Howev
er,
aspeci
almeet
ingshal
lbecal
l
edbyt
he
boar
dofdi
rect
orsaf
tercompl
i
ancewi
tht
he
r
equi
rednot
icewi
thi
nfr
om atl
eastt
enper
cent
um (
10%)oft
het
otal
member
swhor
e
ent
it
ledt
ovot
etot
ransactspeci
fi
cbusi
ness
cov
eredbyt
hecal
l
.

"
Ift
heboar
dfai
l
stocal
lar
egul
aroraspeci
al
meet
ingwi
thi
nthegi
venper
iod,
theAut
hor
it
y,
uponpet
it
ionoft
enpercent
um (
10%)ofal
lthe
member
soft
hecooper
ati
vewhoar
eent
it
ledt
o
v
ote,
andf
orgoodcauseshown,
shal
li
ssuean
or
dert
othepet
it
ioner
sdi
rect
ingt
hem t
ocal
la
meet
ingoft
hegener
alassembl
ybygi
vi
ngpr
oper
not
iceasr
equi
redi
nthi
sCodeori
ntheby
laws;

"
(3)I
nthecaseofanewl
yappr
ovedcooper
ati
ve,
a
speci
algener
alassembl
yshal
lbecal
l
ed,
asf
aras
pr
act
icabl
e,wi
thi
nni
net
y(90)day
sfr
om such
appr
oval
;
"
(4)TheAut
hor
it
ymaycal
laspeci
almeet
ingof
t
hecooper
ati
vef
ort
hepur
poseofr
epor
ti
ngt
othe
member
sther
esul
tofanyex
ami
nat
ionorot
her
i
nvest
igat
ionoft
hecooper
ati
veaf
fai
rs;
and

"
(5)Not
iceofanymeet
ingmaybewai
ved,
ex
pressl
yori
mpl
i
edl
y,byanymember
.

"
ART.35.Quor
um.–Aquor
um shal
lconsi
stofat
l
eastt
went
y-f
ivepercent
um (
25%)ofal
lthe
member
sent
it
ledt
ovot
e.I
nthecaseof
cooper
ati
vebanks,
thequor
um shal
lbeas
pr
ovi
dedi
nAr
ti
cle99oft
hisCode.I
nthecaseof
el
ect
ri
ccooper
ati
vesr
egi
ster
edundert
hisCode,
a
quor
um,
unl
essot
her
wisepr
ovi
dedi
ntheby
laws,
shal
lconsi
stoff
ivepercent
um (
5%)ofal
lthe
member
sent
it
ledt
ovot
e.

"
ART.36.Vot
ingSy
stem.–Eachmemberofa
pr
imar
ycooper
ati
veshal
lhav
eonl
yone(
1)v
ote.
I
nthecaseofmember
sofsecondar
yort
ert
iar
y
cooper
ati
ves,
theyshal
lhav
eone(
1)basi
cvot
e
andasmanyi
ncent
ivev
otesaspr
ovi
dedf
ori
nthe
by
lawsbutnotex
ceedf
ive(
5)v
otes.Thev
otes
castbyt
hedel
egat
esshal
lbedeemedasv
otes
castbyt
hemember
sther
eof
.

"
Howev
er,
theby
lawsofacooper
ati
veot
hert
hana
pr
imar
ymaypr
ovi
def
orv
oti
ngbypr
oxy
.Vot
ingby
pr
oxymeansal
l
owi
ngadel
egat
eofacooper
ati
ve
t
orepr
esentorv
otei
nbehal
fofanot
herdel
egat
e
oft
hesamecooper
ati
ve.

"
ART.37.Composi
ti
onandTer
m oft
heBoar
dof
Di
rect
ors.–Unl
essot
her
wisepr
ovi
dedi
nthe
by
laws,
thedi
rect
ionandmanagementoft
he
af
fai
rsofacooper
ati
veshal
lbev
est
edi
naboar
d
ofdi
rect
orswhi
chshal
lbecomposedofnotl
ess
t
hatf
ive(
5)normor
ethanf
if
teen(
15)member
s
el
ect
edbyt
hegener
alassembl
yforat
erm oft
wo
(
2)y
ear
sandshal
lhol
dof
fi
ceunt
ilt
hei
r
successor
sar
edul
yel
ect
edanqual
i
fied,
orunt
il
dul
yremov
edf
orcaused.

"
ART.38.Power
soft
heBoar
dofDi
rect
ors.–The
boar
dofdi
rect
orsshal
lber
esponsi
blef
ort
he
st
rat
egi
cpl
anni
ng,
dir
ect
ion-
set
ti
ngandpol
i
cy-
f
ormul
ati
onact
ivi
ti
esoft
hecooper
ati
ves.

"
ART.39.Di
rect
ors.–(
1)Anymemberofa
cooper
ati
vewhoundert
heby
lawsoft
he
cooper
ati
ve,
hast
her
ightt
ovot
eandwho
possessesal
lthequal
i
ficat
ionsandnoneoft
he
di
squal
i
ficat
ionspr
ovi
dedi
nthel
awsorby
laws
shal
lbeel
i
gibl
eforel
ect
ionasdi
rect
or.

"
(2)Thecooper
ati
vemay
,byr
esol
uti
onofi
ts
boar
dofdi
rect
ors,
admi
tasdi
rect
ors,
or
commi
tt
eememberoneappoi
ntedbyany
f
inanci
ngi
nst
it
uti
onf
rom whi
cht
hecooper
ati
ve
r
ecei
vedf
inanci
alassi
stancesol
elyt
opr
ovi
de
t
echni
cal
knowl
edgenotav
ail
abl
ewi
thi
nit
s
member
shi
p.Suchdi
rect
ororcommi
tt
eemember
notbeamemberoft
hecooper
ati
veandshal
l
hav
enopower
s,r
ight
s,norr
esponsi
bil
i
tiesex
cept
t
opr
ovi
dedt
echni
cal
assi
stanceasr
equi
redby
t
hecooper
ati
ve.

"
(3)Themember
soft
heboar
dofdi
rect
orsshal
l
nothol
danyot
herposi
ti
ondi
rect
lyi
nvol
vedi
nthe
dayt
odayoper
ati
onandmanagementoft
he
cooper
ati
ve.

"
(4)Anyper
sonengagedi
nabusi
nesssi
mil
art
o
t
hatoft
hecooper
ati
veorwhoi
nanywayhasa
conf
li
ctofi
nter
estwi
thi
t,i
sdi
squal
i
fiedf
rom
el
ect
ionasadi
rect
orofsai
dcooper
ati
ve.

"
ART.40.Meet
ingoft
heBoar
dandQuor
um
Requi
rement
.–(
1)I
nthecaseofpr
imar
y
cooper
ati
ves,
regul
armeet
ingsoft
heboar
dof
di
rect
orsshal
lbehel
datl
eastonceamont
h.

"
(2)Speci
almeet
ingsoft
heboar
dofdi
rect
ors
maybehel
datanyt
imeupont
hecal
loft
he
chai
rper
sonoramaj
ori
tyoft
hemember
soft
he
boar
d:Pr
ovi
ded,
Thatwr
it
tennot
icesoft
he
meet
ingspeci
fyi
ngt
heagendaoft
hespeci
al
meet
ingshal
lbegi
vent
oal
lmember
soft
he
boar
datl
eastone(
1)weekbef
oret
hesai
d
meet
ing.
"
(3)Amaj
ori
tyoft
hemember
soft
heBoar
dshal
l
const
it
uteaquor
um ort
heconductofbusi
ness,
unl
esst
heby
lawspr
ovedot
her
wise.

"
(4)Di
rect
orscannotat
tendorv
otebypr
oxyat
boar
dmeet
ings.

"
ART.41.Vacancyi
ntheBoar
dofDi
rect
ors.–Any
v
acancyi
ntheboar
dofdi
rect
ors,
othert
hanby
ex
pir
ati
onoft
erm,
maybef
il
ledbyt
hev
oteofat
l
eastamaj
ori
tyoft
her
emai
ningdi
rect
ors,
ifst
il
l
const
it
uti
ngaquor
um;
other
wise,
thev
acancy
mustbef
il
ledbyt
hegener
alassembl
yinar
egul
ar
orspeci
almeet
ingcal
l
edf
ort
hepur
pose.A
di
rect
orsoel
ect
edt
ofi
l
lav
acancyshal
lser
ve
onl
ytheunex
pir
edt
erm ofhi
spr
edecessori
n
of
fi
ce.

"
ART.42.Of
fi
cer
soft
heCooper
ati
ve.–Theboar
d
ofdi
rect
orsshal
lel
ectf
rom amongt
hemsel
ves
t
hechai
rper
sonandv
ice-
chai
rper
son,
andel
ector
appoi
ntot
herof
fi
cer
soft
hecooper
ati
vef
rom
out
sideoft
heboar
dinaccor
dancewi
tht
hei
r
by
laws.Al
lof
fi
cer
sshal
lser
vedur
inggood
behav
iorandshal
lnotber
emov
edex
ceptf
or
causeaf
terduehear
ing.Lossofconf
idenceshal
l
notbeav
ali
dgr
oundf
orr
emov
alunl
ess
ev
idencedbyact
soromi
ssi
oncausi
ngl
ossof
conf
idencei
nthehonest
yandi
ntegr
it
yofsuch
of
fi
cer
.Not
wo(
2)ormor
eper
sonswi
th
r
elat
ionshi
psupt
othet
hir
dci
vi
ldegr
eeof
consangui
nit
yoraf
fi
nit
ynorshal
lanyper
son
engagedi
nabusi
nesssi
mil
art
othatoft
he
cooper
ati
venorwhoi
nanyot
hermannerhas
i
nter
est
sinconf
li
ctwi
tht
hecooper
ati
veshal
l
ser
veasanappoi
nti
veof
fi
cer
.

"
ART.43.Commi
tt
eesofCooper
ati
ves.–(
1)The
by
lawsmaycr
eat
eanex
ecut
ivecommi
tt
eet
obe
appoi
ntedbyt
heboar
dofdi
rect
orswi
thsuch
power
sanddut
iesasmaybedel
egat
edt
oiti
nthe
by
lawsorbyamaj
ori
tyv
oteofal
lthemember
sof
t
heboar
dofdi
rect
ors.
"
(2)Theby
lawsshal
lpr
ovi
def
ort
hecr
eat
ionofan
audi
t,el
ect
ion,
medi
ati
onandconci
l
iat
ion,
ethi
cs,
andsuchot
hercommi
tt
eesasmaybenecessar
y
f
ort
heconductoft
heaf
fai
rsoft
hecooper
ati
ve.
Themember
sofbot
htheaudi
tandel
ect
ion
commi
tt
eeshal
lbeel
ect
edbyt
hegener
al
assembl
yandt
her
estshal
lbeappoi
ntedbyt
he
boar
d.Theaudi
tcommi
tt
eeshal
lbedi
rect
ly
account
abl
eandr
esponsi
blet
othegener
al
assembl
y.I
tshal
lhav
ethepoweranddut
yto
cont
inuousl
ymoni
tort
headequacyand
ef
fect
ivenessoft
hecooper
ati
ve’
smanagement
cont
rol
syst
em andaudi
ttheper
for
manceoft
he
cooper
ati
veandi
tsv
ari
ousr
esponsi
bil
i
tycent
ers.

"
Unl
essot
her
wisepr
ovi
dedi
ntheby
laws,
the
boar
d,i
ncaseofav
acancyi
nthecommi
tt
ees,
maycal
lanel
ect
iont
ofi
l
lthev
acancyorappoi
nt
aper
sont
ofi
l
lthesamesubj
ectt
othepr
ovi
sion
t
hatt
heper
sonel
ect
edorappoi
ntedshal
lser
ve
onl
yfort
heunex
pir
edpor
ti
onoft
het
erm.

"
ART.44.Funct
ions,
Responsi
bil
i
tiesandTr
aini
ng
Requi
rement
sofDi
rect
ors,
Off
icer
sand
Commi
tt
eeMember
s.–t
hef
unct
ionsand
r
esponsi
bil
i
tiesofdi
rect
ors,
off
icer
sand
commi
tt
eemember
s,aswel
last
hei
rtr
aini
ng
r
equi
rement
s,shal
lbei
naccor
dancewi
tht
he
r
ulesandr
egul
ati
onsi
ssuedbyt
heAut
hor
it
y.

"
ART.45.Li
abi
l
ityofDi
rect
ors,
Off
icer
sand
Commi
tt
eeMember
s.–Di
rect
ors,
off
icer
sand
commi
tt
eemember
s,whoar
ewi
l
lful
l
yand
knowi
ngl
yvot
efororassentt
opat
ent
lyunl
awf
ul
act
sorwhoar
egui
l
tyofgr
ossnegl
i
genceorbad
f
ait
hindi
rect
ingt
heaf
fai
rsoft
hecooper
ati
veor
acqui
reanyper
sonal
orpecuni
aryi
nter
esti
n
conf
li
ctwi
tht
hei
rdut
yassuchdi
rect
ors,
off
icer
s
orcommi
tt
eemember
sshal
lbel
i
abl
ejoi
ntl
yand
sev
eral
l
yforal
ldamagesorpr
ofi
tsr
esul
ti
ng
t
her
efr
om t
othecooper
ati
ve,
member
s,andot
her
per
sons.

"
Whenadi
rect
or,
off
icerorcommi
tt
eemember
at
tempt
stoacqui
reoracqui
res,
inv
iol
ati
onofhi
s
dut
y,anyi
nter
estorequi
tyadv
erset
othe
cooper
ati
vei
nrespectt
oanymat
terwhi
chhas
beenr
eposedi
nhi
minconf
idence,
heshal
l
,asa
t
rust
eef
ort
hecooper
ati
ve,
bel
i
abl
efordamages
andshal
lbeaccount
abl
efordoubl
ethepr
ofi
ts
whi
chot
her
wisewoul
dhav
eaccr
uedt
othe
cooper
ati
ve.

"
ART.46.Compensat
ion.–(
1)I
ntheabsenceof
anypr
ovi
sionsi
ntheby
lawsf
ixi
ngt
hei
r
compensat
ion,
thedi
rect
orsshal
lnotr
ecei
veany
compensat
ionex
ceptf
orr
easonabl
eperdi
ems:
Pr
ovi
dedhowev
er,
Thatt
hedi
rect
orsandof
fi
cer
s
shal
lnotbeent
it
ledt
oanyperdi
em when,
int
he
pr
ecedi
ngcal
endary
ear
,thecooper
ati
ver
epor
ted
anetl
ossorhadadi
vi
dendr
atel
esst
hant
he
of
fi
cial
inf
lat
ionr
atef
ort
hesamey
ear
.Any
compensat
ionot
hert
hanperdi
emsmaybe
gr
ant
edt
odi
rect
orsbyamaj
ori
tyv
oteoft
he
member
swi
thv
oti
ngr
ight
satar
egul
arorspeci
al
gener
alassembl
ymeet
ingspeci
fi
cal
l
ycal
l
edf
or
t
hepur
pose:
Prov
ided,
Thatnoaddi
ti
onal
compensat
ionot
hert
hanperdi
emsshal
lbepai
d
dur
ingt
hef
ir
sty
earofex
ist
enceofany
cooper
ati
ve.
"
(2)Thecompensat
ionofof
fi
cer
soft
he
cooper
ati
veaswel
last
hemember
soft
he
commi
tt
eeaswel
last
hemember
soft
he
commi
tt
eescr
eat
edpur
suantt
othi
sCodeori
ts
by
lawsmaybef
ixedi
ntheby
laws.

"
(3)Unl
essal
readyf
ixedi
ntheby
laws,
the
compensat
ionofal
lot
herempl
oyeeshal
lbe
det
ermi
nedbyt
heboar
dofdi
rect
ors.

"
ART.47.Deal
i
ngsofDi
rect
ors,
Off
icer
s,or
Commi
tt
eeMember
s.–Acont
ractent
eredi
ntoby
t
hecooper
ati
vewi
thone(
1)ormor
eofi
ts
di
rect
ors,
off
icer
s,andcommi
tt
eemember
sis
v
oidabl
e,att
heopt
ionoft
hecooper
ati
ve,
unl
ess
al
lthef
oll
owi
ngcondi
ti
onsar
epr
esent
.

"
(1)Thatt
hepr
esenceofsuchdi
rect
ori
nthe
boar
dmeet
ingwher
eincont
ractwasappr
oved
wasnotnecessar
ytoconst
it
uteaquor
um f
or
suchmeet
ing;
"
(2)Thatt
hev
oteofsuchdi
rect
orwasnot
necessar
yfort
heappr
oval
oft
hecont
ract
;

"
(3)Thatt
hecont
racti
sfai
randr
easonabl
eunder
t
heci
rcumst
ances;
and

"
(4)Thati
nthecaseofanof
fi
cerorcommi
tt
ee
member
,thecont
ractwi
tht
heof
fi
ceror
commi
tt
eememberhasbeenpr
evi
ousl
y
aut
hor
izedbyt
hegener
alassembl
yorbyt
he
boar
dofdi
rect
ors.

"
Wher
eanyoft
hef
ir
stt
wocondi
ti
onssetf
ort
hin
t
hepr
ecedi
ngpar
agr
aphi
sabsent
,int
hecaseofa
cont
ractwi
thadi
rect
or,
suchcont
ractmaybe
r
ati
fi
edbyat
hree-
four
ths(
3/4)v
oteofal
lthe
member
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um i
nameet
ingcal
l
edf
ort
he
pur
pose:
Prov
ided,
Thatf
ull
discl
osur
eoft
he
adv
ersei
nter
estoft
hedi
rect
orsi
nvol
vedi
smade
atsuchmeet
ing,
andt
hatt
hecont
racti
sfai
rand
r
easonabl
eundert
heci
rcumst
ances.

"
ART.48.Di
sloy
alt
yofaDi
rect
or.–Adi
rect
orwho,
byv
irt
ueofhi
sof
fi
ce,
acqui
resf
orhi
msel
fan
oppor
tuni
tywhi
chshoul
dbel
ongt
othe
cooper
ati
veshal
lbel
i
abl
efordamagesandmust
accountf
ordoubl
ethepr
ofi
tst
hatot
her
wise
woul
dhav
eaccr
uedt
othecooper
ati
veby
r
efundi
ngt
hesame,
unl
esshi
sacthasbeen
r
ati
fi
edbyat
hree-
four
ths(
3/4)v
oteofal
lthe
member
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um.Thi
spr
ovi
sionshal
lbe
appl
i
cabl
e,not
wit
hst
andi
ngt
hef
actt
hatt
he
di
rect
orusedhi
sownf
undsi
nthev
ent
ure.

"
ART.49.I
ll
egal
UseofConf
ident
ial
Inf
ormat
ion.–
(
1)Adi
rect
ororof
fi
cer
,oranassoci
ateofa
di
rect
ororof
fi
cer
,who,
forhi
sbenef
itor
adv
ant
ageort
hatofanassoci
ate,
makesuseof
conf
ident
ial
inf
ormat
iont
hat
,ifgener
all
yknown,
mi
ghtr
easonabl
ybeex
pect
edt
oadv
ersel
yaf
fect
t
heoper
ati
onandv
iabi
l
ityoft
hecooper
ati
ve,
shal
l
behel
d:
"
(a)Li
abl
etocompensat
ethecooper
ati
vef
ort
he
di
rectl
ossessuf
fer
edbyt
hecooper
ati
veasa
r
esul
toft
hei
l
legal
useofi
nfor
mat
ion;
and

"
(b)Account
abl
etot
hecooper
ati
vef
oranydi
rect
benef
itoradv
ant
ager
ecei
vedory
ett
ober
ecei
ved
byhi
m orhi
sassoci
ate,
asar
esul
toft
he
t
ransact
ion.

"
(2)Thecooper
ati
veshal
ltaket
henecessar
y
st
epst
oenf
orcet
hel
i
abi
l
iti
esdescr
ibedi
n
subsect
ion(
a)

"
ART.50.Remov
al.–Al
lcompl
aint
sfort
he
r
emov
alofanyel
ect
edof
fi
cershal
lbef
il
edwi
th
t
heboar
dofdi
rect
ors.Suchof
fi
cershal
lbegi
ven
t
heoppor
tuni
tyt
obehear
d.Maj
ori
tyoft
heboar
d
ofdi
rect
orsmaypl
acet
heof
fi
cerconcer
ned
underpr
event
ivesuspensi
onpendi
ngt
he
r
esol
uti
onoft
hei
nvest
igat
ion.Uponf
indi
ngofa
pr
imaf
aci
eev
idenceofgui
l
t,t
heboar
dshal
l
pr
esenti
tsr
ecommendat
ionf
orr
emov
alt
othe
gener
alassembl
y.

"
Anel
ect
iveof
fi
cermayber
emov
edbyt
hree
f
our
ths(
3/4)v
otesoft
her
egul
armember
s
pr
esentandconst
it
uti
ngaquor
um,
inar
egul
aror
speci
algener
alassembl
ymeet
ingcal
l
edf
ort
he
pur
pose.Theof
fi
cerconcer
nedshal
lbegi
venan
oppor
tuni
tyt
obehear
datsai
dassembl
y.

SEC.5.Ar
ti
cles52,
53,
54,
55,
56,
57,
58,
59,
60,
61,
62and63ofChapt
erVonResponsi
bil
i
ties,
Right
s
andPr
ivi
l
egesofCooper
ati
vesoft
hesameCode
ar
eher
ebyr
enumber
edandamendedt
oread,
as
f
oll
ows:

CHAPTERV
RESPONSI
BILI
TIES,
RIGHTSANDPRI
VILEGESOF
COOPERATI
VE

"
ART.51.Addr
ess.–Ev
erycooper
ati
veshal
lhav
e
anof
fi
cial
post
aladdr
esst
owhi
chal
lnot
icesand
communi
cat
ionsshal
lbesent
.Suchaddr
essand
ev
erychanget
her
eofshal
lber
egi
ster
edwi
tht
he
Aut
hor
it
y.

"
ART.52.Bookst
obeKeptOpen.–(
1)Ev
ery
cooper
ati
veshal
lhav
ethef
oll
owi
ngdocument
s
r
eadyandaccessi
blet
oit
smember
sand
r
epr
esent
ati
vesoft
heAut
hor
it
yfori
nspect
ion
dur
ingr
easonabl
eof
fi
cehour
sati
tsof
fi
cial
addr
ess:

"
(a)Acopyoft
hisCodeandal
lot
herl
aws
per
tai
ningt
ocooper
ati
ves;

"
(b)Acopyoft
her
egul
ati
onsoft
heAut
hor
it
y;

"
(c)Acopyoft
hear
ti
clesofcooper
ati
onand
by
lawsoft
hecooper
ati
ve;

"
(d)Ar
egi
sterofmember
s;
"
(e)Thebooksoft
hemi
nut
esoft
hemeet
ingsof
t
hegener
alassembl
y,boar
dofdi
rect
orsand
commi
tt
ee;

"
(f)Shar
ebooks,
wher
eappl
i
cabl
e;

"
(g)Fi
nanci
alst
atement
;and

"
(h)Suchot
herdocument
sasmaybepr
escr
ibed
byl
awsort
heby
laws.

"
(2)Theaccount
antort
hebookkeeperoft
he
cooper
ati
veshal
lber
esponsi
blef
ort
he
mai
ntenanceoft
hecooper
ati
vei
naccor
dance
wi
thgener
all
yaccept
edaccount
ingpr
act
ices.He
shal
lal
sober
esponsi
blef
ort
hepr
oduct
ionoft
he
sameatt
het
imeofaudi
tori
nspect
ion.

"
Theaudi
tcommi
tt
eeshal
lber
esponsi
blef
ort
he
cont
inuousandper
iodi
crev
iewoft
hebooksand
r
ecor
dsofaccountt
oensur
ethatt
hesear
ein
accor
dancewi
thgener
all
yaccept
edaccount
ing
pr
act
ices.Heshal
lal
sober
esponsi
blef
ort
he
pr
oduct
ionoft
hesameatt
het
imeofaudi
tor
i
nspect
ion.

"
(3)Eachcooper
ati
veshal
lmai
ntai
nrecor
dsof
account
ssucht
hatt
het
rueandcor
rectcondi
ti
on
andt
her
esul
tsoft
heoper
ati
onoft
hecooper
ati
ve
maybeascer
tai
nedt
her
efr
om atanyt
ime.The
f
inanci
alst
atement
s,audi
tedaccor
dingt
o
gener
all
yaccept
edaudi
ti
ngst
andar
ds,
pri
nci
ples
andpr
act
ices,
shal
lbepubl
i
shedannual
l
yand
shal
lbekeptpost
edi
naconspi
cuouspl
acei
nthe
pr
inci
pal
off
iceoft
hecooper
ati
ve.

"
(4)Subj
ectt
otheper
ti
nentpr
ovi
sionsoft
he
Nat
ional
Int
ernal
Rev
enueCodeandot
herl
aws,
a
cooper
ati
vemaydi
sposebywayofbur
ningor
ot
hermet
hodofcompl
etedest
ruct
ionany
document
,recor
dorbookper
tai
ningt
oit
s
f
inanci
alandnonf
inanci
aloper
ati
onswhi
char
e
al
readymor
ethanf
ive(
5)y
ear
sol
dex
ceptt
hose
r
elat
ingt
otr
ansact
ionswhi
char
ethesubj
ectof
ci
vi
l,
cri
minal
andadmi
nist
rat
ivepr
oceedi
ngs.An
i
nvent
oryoft
heaudi
teddocument
s,r
ecor
dsand
bookst
obedi
sposedofshal
lbedr
awnupand
cer
ti
fi
edt
obyt
heboar
dsecr
etar
yandt
he
chai
rmanoft
heaudi
tcommi
tt
eeandpr
esent
edt
o
t
heboar
dofdi
rect
orswhi
chmayt
her
eupon
appr
ovet
hedi
sposi
ti
onofsai
drecor
ds.

"
ART.53.Repor
ts.–(
1)Ev
erycooper
ati
veshal
l
dr
awupr
egul
arr
epor
tsofi
tspr
ogr
am ofact
ivi
ti
es,
i
ncl
udi
ngt
hosei
npur
suanceoft
hei
rsoci
o-ci
vi
c
under
taki
ngs,
showi
ngt
hei
rpr
ogr
essand
achi
evement
satt
heendofev
eryf
iscal
year
.The
r
epor
tsshal
lbemadeaccessi
blet
oit
smember
s,
andcopi
est
her
eofshal
lbef
urni
shedt
oal
li
ts
member
sorr
ecor
d.Theser
epor
tsshal
lbef
il
ed
wi
tht
heAut
hor
it
ywi
thi
nonehundr
edt
went
y(120)
day
sfr
om t
heendoft
hecal
endary
ear
.Thef
orm
andcont
ent
soft
her
epor
tsshal
lbeaspr
escr
ibed
byt
her
ulesoft
heAut
hor
it
y.Fai
l
uret
ofi
l
ethe
r
equi
redr
epor
tsshal
lsubj
ectt
heaccount
abl
e
of
fi
cer
/st
ofi
nesandpenal
ti
esasmaybe
pr
escr
ibedbyt
heAut
hor
it
y,andshal
lbeagr
ound
f
ort
her
evocat
ionofaut
hor
it
yoft
hecooper
ati
ve
t
ooper
ateassuch.Thef
iscal
yearofev
ery
cooper
ati
veshal
lbet
hecal
endary
earex
ceptas
maybeot
her
wisepr
ovi
dedi
ntheby
laws.

"
(2)I
facooper
ati
vef
ail
stomake,
publ
i
shandf
il
e
t
her
epor
tsr
equi
redher
ein,
orf
ail
stoi
ncl
ude
t
her
einanymat
terr
equi
redbyt
heCode,
the
Aut
hor
it
yshal
l
,wi
thi
nfi
ft
een(
15)day
sfr
om t
he
ex
pir
ati
onoft
hepr
escr
ibedper
iod,
sendsuch
cooper
ati
veawr
it
tennot
ice,
stat
ingi
tsnon-
compl
i
anceandt
hecommensur
atef
inesand
penal
ti
est
hatwi
l
lbei
mposedunt
ilsucht
imet
hat
t
hecooper
ati
vehascompl
i
edwi
tht
he
r
equi
rement
s.

"
ART.54.Regi
sterofMember
sasPr
imaFaci
e
Ev
idence.–Anyr
egi
sterorl
i
stofmember
sshar
es
keptbyanyr
egi
ster
edcooper
ati
veshal
lbepr
ima
f
aci
eev
idenceoft
hef
oll
owi
ngpar
ti
cul
arsent
ered
t
her
ein:

"
(1)Thedat
eonwhi
cht
henameofanyper
son
wasent
eredi
nsuchr
egi
sterorl
i
stofmember
;
and

"
(2)Thedat
eonwhi
chanysuchper
sonceasedt
o
beamember
.

"
ART.55.Pr
obat
iveVal
ueofCer
ti
fi
edCopi
esof
Ent
ri
es.–(
1)Acopyofanyent
ryi
nanybook,
r
egi
sterorl
i
str
egul
arl
ykepti
nthecour
seof
busi
nessi
nthepossessi
onofacooper
ati
veshal
l
,
i
fdul
ycer
ti
fi
edi
naccor
dancewi
tht
her
ulesof
ev
idence,
beadmi
ssi
bleasev
idenceoft
he
ex
ist
enceofent
ryandpr
imaf
aci
eev
idenceoft
he
mat
ter
sandt
ransact
ionst
her
einr
ecor
ded.

"
(2)Noper
sonoracooper
ati
vei
spossessi
onof
t
hebooksofsuchcooper
ati
veshal
l
,inanyl
egal
pr
oceedi
ngst
owhi
cht
hecooper
ati
vei
snota
par
ty,
becompel
l
edt
opr
oduceanyoft
hebooks
oft
hecooper
ati
ve,
thecont
ent
sofwhi
chcanbe
pr
ovedandt
hemat
ter
s,t
ransact
ionsand
account
sther
einr
ecor
ded,
unl
essbyor
derofa
compet
entcour
t.
"
ART.56.Bondi
ngofAccount
abl
eOf
fi
cer
s.–
Ev
erydi
rect
or,
off
icer
,andempl
oyeehandl
i
ng
f
unds,
secur
it
iesorpr
oper
tyonbehal
fofany
cooper
ati
veshal
lbecov
eredbyasur
etybondt
o
bei
ssuedf
oradul
yregi
ster
edi
nsur
anceor
bondi
ngcompanyf
ort
hef
ait
hful
per
for
manceof
t
hei
rrespect
ivedut
iesandobl
i
gat
ions.Theboar
d
ofdi
rect
orsshal
ldet
ermi
net
headequacyofsuch
bonds.

"
Upont
hef
il
ingoft
heappl
i
cat
ionf
orr
egi
str
ati
on
ofacooper
ati
ve,
thebondsoft
heaccount
abl
e
of
fi
cer
sshal
lber
equi
redbyt
heAut
hor
it
y.Such
bondsshal
lber
enewedmanual
l
yandt
he
Aut
hor
it
yshal
laccor
dingl
ybei
nfor
medofsuch
r
enewal
.

"
ART.57.Pr
efer
enceofCl
aims.–(
1)
Not
wit
hst
andi
ngt
hepr
ovi
sionsofex
ist
ingl
aws,
r
ulesandr
egul
ati
onst
othecont
rar
y,butsubj
ect
t
othepr
iorcl
aim oft
heAut
hor
it
y,anydebtduet
o
t
hecooper
ati
vef
rom t
hemembershal
lconst
it
ute
af
ir
stl
i
enuponanyr
awmat
eri
als,
product
ion,
i
nput
s,andpr
oduct
spr
oduced;
oranyl
and,
bui
l
ding,
faci
l
iti
es,
equi
pment
,goodsorser
vices
acqui
redandhel
d,bysuchmembert
hrought
he
pr
oceedsoft
hel
oanorcr
edi
tgr
ant
edbyt
he
cooper
ati
vet
ohi
mforasl
ongast
hesamei
snot
f
ull
ypai
d.

"
(2)Nopr
oper
tyori
nter
estonpr
oper
tywhi
chi
s
subj
ectt
oal
i
enunderpar
agr
aph(
1)shal
lbesol
d
norconv
eyedt
othi
rdpar
ti
eswi
thoutt
hepr
ior
per
missi
onoft
hecooper
ati
ve.Thel
i
enupont
he
pr
oper
tyori
nter
estshal
lcont
inuet
oex
itev
en
af
tert
hesal
eorconv
eyancet
her
eofunt
ilsuchl
i
en
hasbeendul
yex
tingui
shed.

"
(3)Not
wit
hst
andi
ngt
hepr
ovi
sionsofanyl
awt
o
t
hecont
rar
y,anysal
eorconv
eyancemadei
n
cont
rav
ent
ionofpar
agr
aph(
2)her
eofshal
lbe
v
oid.

"
ART.58.I
nst
rumentf
orSal
aryorWageDeduct
ion.
–(
1)Amemberofacooper
ati
vemay
,
not
wit
hst
andi
ngt
hepr
ovi
sionsofex
ist
ingl
awst
o
t
hecont
rar
y,ex
ecut
eani
nst
rumenti
nfav
oroft
he
cooper
ati
veaut
hor
izi
nghi
sempl
oyert
odeduct
f
rom hi
s/hersal
aryorwages,
commut
ati
onof
l
eav
ecr
edi
tsandanyot
hermonet
arybenef
it
s
pay
abl
etohi
m byt
heempl
oyerandr
emi
tsuch
amountasmay
bespeci
fi
edi
nsat
isf
act
ionofa
debtorot
herdemandduef
rom t
hemembert
othe
cooper
ati
ve.

"
(2)Upont
heex
ecut
ionofsuchi
nst
rumentandas
mayber
equi
redbyt
hecooper
ati
vecont
ainedi
na
wr
it
tenr
equest
,theempl
oyershal
lmaket
he
deduct
ioni
naccor
dancewi
tht
heagr
eementand
deduct
ioni
naccor
dancewi
tht
heagr
eementand
r
emi
tfor
thwi
tht
heamountsodeduct
edwi
thi
nten
(
10)day
saf
tert
heendoft
hepay
rol
lmont
htot
he
cooper
ati
ve.Theempl
oyershal
lmaket
he
deduct
ionf
orasl
ongassuchdebtorot
her
demandr
emai
nsunpai
dbyt
heempl
oyee.

"
(3)Thet
erm"
empl
oyer
"asusedi
nthi
sar
ti
cle
shal
li
ncl
udeal
lpr
ivat
efi
rmsandt
henat
ional
and
l
ocal
gov
ernment
sandgov
ernment
-ownedor
cont
rol
l
edcor
por
ati
onswhohav
eundert
hei
r
empl
oyeramemberofacooper
ati
veandhav
e
agr
eedt
ocar
ryoutt
het
ermsoft
hei
nst
rument
ment
ionedi
npar
agr
aphs(
1)and(
2)oft
hisar
ti
cle.

"
(4)Thepr
ovi
sionsoft
hisar
ti
cleshal
lappl
ytoal
l
si
mil
aragr
eement
sref
err
edt
oinpar
agr
aph(
1)
andwer
eenf
orcedpr
iort
otheappr
oval
oft
his
Code.

"
(5)Not
wit
hst
andi
ngt
hepr
ovi
sionsofex
ist
ing
l
awst
othecont
rar
y,t
her
esponsi
bil
i
tiesoft
he
empl
oyerasst
atedi
npar
agr
aphs(
1)and(
2)of
t
hisar
ti
clesshal
lbemandat
ory
:Pr
ovi
ded,
Thati
n
t
hecaseofpr
ivat
eempl
oyer
,theact
ual
and
r
easonabl
ecostdeduct
ingandr
emi
tt
ingmay
be
col
l
ect
ed.

"
ART.59.Pr
imar
yLi
en.-Not
wit
hst
andi
ngt
he
pr
ovi
sionofanyl
awwi
tht
hecont
rar
y,a
cooper
ati
veshal
lhav
epr
imar
yli
enupont
he
capi
tal
,deposi
tsori
nter
estofamemberf
orany
debtduet
othecooper
ati
vef
rom suchamember
.

"
ART.60.TaxTr
eat
mentofCooper
ati
ve.-Dul
y
r
egi
ster
edcooper
ati
vesundert
hisCodewhi
chdo
nott
ransactanybusi
nesswi
thnon-
member
sor
t
hegener
alpubl
i
cshal
lnotbesubj
ectt
oany
t
axesandf
eesi
mposedundert
hei
nter
nal
r
evenuel
awsandot
hert
axl
aws.Cooper
ati
vesnot
f
all
i
ngundert
hisar
ti
cleshal
lbegov
ernedbyt
he
succeedi
ngsect
ion.

"
ART.
61.TaxandOt
herEx
empt
ions.Cooper
ati
ves
t
ransact
ingbusi
nesswi
thbot
hmember
sandnon-
member
sshal
lnotbesubj
ect
edt
otaxont
hei
r
t
ransact
ionswi
thmember
s.I
nrel
ati
ont
othi
s,t
he
t
ransact
ionsofmember
swi
tht
hecooper
ati
ve
shal
lnotbesubj
ectt
oanyt
axesandf
ees,
i
ncl
udi
ngnotl
i
mit
edt
ofi
nal
tax
esonmember
s’
deposi
tsanddocument
aryt
ax.Not
wit
hst
andi
ng
t
hepr
ovi
sionsofanyl
aworr
egul
ati
ont
othe
cont
rar
y,suchcooper
ati
vesdeal
i
ngwi
th
nonmember
sshal
lenj
oyt
hef
oll
owi
ngt
ax
ex
empt
ions:
"
(1)Cooper
ati
veswi
thaccumul
atedr
eser
vesand
undi
vi
dednetsav
ingsofnotmor
ethanTen
mi
l
li
onpesos(
P10,
000,
000.
00)shal
lbeex
empt
f
rom al
lnat
ional
,ci
ty,
prov
inci
al,
muni
cipal
or
bar
angayt
axesofwhat
evernameandnat
ure.
Suchcooper
ati
vesshal
lbeex
emptf
rom cust
oms
dut
ies,
adv
ancesal
esorcompensat
ingt
axeson
t
hei
rimpor
tat
ionofmachi
ner
ies,
equi
pmentand
spar
epar
tsusedbyt
hem andwhi
char
enot
av
ail
abl
elocal
l
yacer
ti
fi
edbyt
hedepar
tmentof
t
radeandi
ndust
ry(
DTI
).Al
ltaxf
reei
mpor
tat
ions
shal
lnotbesol
dnort
hebenef
ici
alowner
shi
p
t
her
eofbet
ransf
err
edt
oanyper
sonunt
ilaf
terf
ive
(
5)y
ear
s,ot
her
wise,
thecooper
ati
veandt
he
t
ransf
ereeorassi
gneeshal
lbesol
i
dar
il
yli
abl
eto
payt
wicet
heamountoft
hei
mposedt
axand/or
dut
ies.

"
(2)Cooper
ati
veswi
thaccumul
atedr
eser
vesand
di
vi
dednetsav
ingsofmor
ethanTenmi
l
li
on
pesos(
P10,
000,
000.
00)shal
lfeet
hef
oll
owi
ng
t
axesatt
hef
ull
rat
e:
"
(a)I
ncomeTax-Ont
heamountal
l
ocat
edf
or
i
nter
estoncapi
tal
s:Pr
ovi
ded,
Thatt
hesamet
axi
s
notconsequent
lyi
mposedoni
nter
esti
ndi
vi
dual
l
y
r
ecei
vedbymember
s:Pr
ovi
ded,
fur
ther
,That
cooper
ati
vesr
egar
dlessofcl
assi
fi
cat
ion,
are
ex
empti
ncomet
axf
rom t
hedat
eofr
egi
str
ati
on
wi
tht
heAut
hor
it
y;

"
(b)Val
ue-
AddedTax–Ont
ransact
ionswi
thnon-
member
s:Pr
ovi
ded,
howev
er,
Thatcooper
ati
ves
dul
yregi
ster
edwi
tht
heAut
hor
it
y;ar
eex
empt
f
rom t
hepay
mentofv
alue-
addedt
ax;
subj
ectt
o
Sect
ion109,
sub-
sect
ionsL,
M andNofRepubl
i
c
ActNo.9337,
theNat
ional
Int
ernal
Rev
enueCode,
asamended:
Prov
ided,
Thatt
heex
empt
t
ransact
ionunderSect
ion109(
L)shal
li
ncl
ude
sal
esmadebycooper
ati
vesdul
yregi
ster
edwi
th
t
heAut
hor
it
yor
gani
zedandoper
atedbyi
ts
membert
ounder
taket
hepr
oduct
ionand
pr
ocessi
ngofr
awmat
eri
alsorofgoodspr
oduced
byi
tsmember
sint
ofi
nishedorpr
ocesspr
oduct
s
f
orsal
ebyt
hecooper
ati
vet
oit
smember
sand
non-
member
s:Pr
ovi
ded,
fur
ther
,Thatany
pr
ocessedpr
oductori
tsder
ivat
ivear
isi
ngf
rom
t
her
awmat
eri
alspr
oducedbyi
tsmember
s,sol
d
i
nthennameandf
ort
heaccountoft
he
cooper
ati
ve:
Prov
ided,
final
l
y,Thatatl
eastt
went
y
-
fi
vepercent
um (
25%)oft
heneti
ncomeoft
he
cooper
ati
vesi
sret
urnedt
othemember
sint
he
f
orm ofi
nter
estand/
orpat
ronager
efunds;

"
(c)Al
lot
hert
axesunl
essot
her
wisepr
ovi
ded
her
ein;
and

"
(d)Donat
ionst
ochar
it
abl
e,r
esear
chand
educat
ional
inst
it
uti
onsandr
einv
est
mentt
o
soci
oeconomi
cpr
oject
swi
thi
nthear
eaof
oper
ati
onoft
hecooper
ati
vemaybet
ax
deduct
ibl
e.

"
(3)Al
lcooper
ati
ves,
regar
dlessoft
heamountof
accumul
atedr
eser
vesandundi
vi
dednetsav
ings
shal
lbeex
emptf
rom pay
mentofl
ocal
tax
esand
t
axesont
ransact
ionswi
thbanksandi
nsur
ance
compani
es:
Prov
ided,
Thatal
lsal
esorser
vices
r
ender
edf
ornon-
member
sshal
lbesubj
ectt
othe
appl
i
cabl
eper
cent
aget
axessal
esmadeby
pr
oducer
s,mar
ket
ingorser
vicecooper
ati
ves:
Pr
ovi
dedf
urt
her
,Thatnot
hingi
nthi
sar
ti
cleshal
l
pr
ecl
udet
heex
ami
nat
ionoft
hebooksof
account
sorot
heraccount
ingr
ecor
dsoft
he
cooper
ati
vebydul
yaut
hor
izedi
nter
nal
rev
enue
of
fi
cer
sfori
nter
nal
rev
enuet
axpur
posesonl
y,
af
terpr
evi
ousaut
hor
izat
ionbyt
heAut
hor
it
y.

"
(4)I
nar
easwher
ether
ear
enoav
ail
abl
enot
ari
es
publ
i
c,t
hej
udge,
exer
cisi
nghi
sexof
fi
ciocapaci
ty
asnot
arypubl
i
c,shal
lrenderser
vice,
freeof
char
ge,
toanyper
sonorgr
oupofper
sons
r
equi
ri
ngt
headmi
nist
rat
ionofoat
hort
he
acknowl
edgmentofar
ti
clesofcooper
ati
onand
i
nst
rument
sofl
oanf
rom cooper
ati
vesnot
ex
ceedi
ngFi
veHundr
edThousandPesos
(
P500,
000.
00)
.

"
(5)Anyr
egi
sterofdeedsshal
lacceptf
or
r
egi
str
ati
on,
freeofchar
ge,
anyi
nst
rumentr
elat
ive
t
oal
oanmadeundert
hisCodewhi
chdoesnot
ex
ceedTwoHundr
edFi
ft
yThousandPesos
(
P250,
000.
00)ort
hedeedsoft
it
leofanypr
oper
ty
acqui
redbyt
hecooper
ati
veoranypaperor
documentdr
awni
nconnect
ionwi
thanyact
ion
br
oughtbyt
hecooper
ati
veorwi
thanycour
t
j
udgmentr
ender
edi
nit
sfav
ororanyi
nst
rument
r
elat
ivet
oabondofanyaccount
abl
eof
fi
cerofa
cooper
ati
vef
ort
hef
ait
hful
per
for
manceofhi
s
dut
iesandobl
i
gat
ions.

"
(6)Cooper
ati
vesshal
lbeex
emptf
rom t
he
pay
mentofal
lcour
tandsher
if
f’
sfeespay
abl
eto
t
hePhi
l
ippi
neGov
ernmentf
orandi
nconnect
ion
wi
thal
lact
ionsbr
oughtundert
hisCode,
orwher
e
suchact
ionsi
sbr
oughtbyt
heAut
hor
it
ybef
ore
t
hecour
t,t
oenf
orcet
hepay
mentofobl
i
gat
ions
cont
ract
edi
nfav
oroft
hecooper
ati
ve.

"
(7)Al
lcooper
ati
vesshal
lbeex
emptf
rom put
ti
ng
upabondf
orbr
ingi
nganappeal
agai
nstt
he
deci
sionofani
nfer
iorcour
torf
orseeki
ngt
oset
asi
deanyt
hir
dpar
tycl
aim:
Prov
ided,
Thata
cer
ti
fi
cat
ionoft
heAut
hor
it
yshowi
ngt
hatt
henet
asset
soft
hecooper
ati
vear
einex
cessoft
he
amountoft
hebondr
equi
redbyt
hecour
tin
si
mil
arcasesshal
lbeaccept
edbyt
hecour
tasa
suf
fi
cientbond.

"
(8)Anysecur
it
yissuedbycooper
ati
vesshal
lbe
ex
emptf
rom t
hepr
ovi
sionsoft
heSecur
it
iesAct
pr
ovi
dedsuchsecur
it
yshal
lnotbespecul
ati
ve.

"
ART.62.Pr
ivi
l
egesofCooper
ati
ves.–
Cooper
ati
vesr
egi
ster
edundert
hisCode,
not
wit
hst
andi
ngt
hepr
ovi
sionsofanyl
awt
othe
cont
rar
y,beal
soaccor
dedt
hef
oll
owi
ngpr
ivi
l
eges:

"
(1)Cooper
ati
vesshal
lenj
oyt
hepr
ivi
l
egeof
deposi
ti
ngt
hei
rseal
edcashbox
esorcont
ainer
s,
document
soranyv
aluabl
epaper
sint
hesaf
esof
t
hemuni
cipal
orci
tyt
reasur
ersandot
her
gov
ernmentof
fi
cesf
reeofchar
ge,
andt
he
cust
odi
anofsuchar
ti
clesshal
li
ssuear
ecei
pt
acknowl
edgi
ngt
hear
ti
clesr
ecei
veddul
y
wi
tnessedbyanot
herper
son;
"
(2)Cooper
ati
vesor
gani
zedamonggov
ernment
empl
oyees,
not
wit
hst
andi
nganyl
aworr
egul
ati
on
t
othecont
rar
y,shal
lenj
oyt
hef
reeuseofany
av
ail
abl
espacei
nthei
ragency
,whet
herownedor
r
ent
edbyt
heGov
ernment
;

"
(3)Cooper
ati
vesr
ender
ingspeci
alt
ypesof
ser
vicesandf
aci
l
iti
essuchascol
dst
orage,
ice
pl
ant
,el
ect
ri
cit
y,t
ranspor
tat
ion,
andsi
mil
ar
ser
vicesandf
aci
l
iti
esshal
lsecur
eaf
ranchi
se
t
her
efor
e,andsuchcooper
ati
vesshal
lopent
hei
r
member
shi
ptoal
lper
sonsqual
i
fiedi
nthei
rar
eas
ofoper
ati
on;

"
(4)I
nar
easwher
eappr
opr
iat
ecooper
ati
vesex
ist
,
t
hepr
efer
ent
ial
rightt
osuppl
ygov
ernment
i
nst
it
uti
onsandagenci
esr
ice,
cor
nandot
her
gr
ains,
fishandot
hermar
inepr
oduct
s,meat
,eggs,
mi
l
k,v
eget
abl
es,
tobaccoandot
heragr
icul
tur
al
commodi
ti
espr
oducedbyt
hei
rmember
sshal
lbe
gr
ant
edt
othecooper
ati
vesconcer
ned;
"
(5)Pr
efer
ent
ial
treat
menti
ntheal
l
ocat
ionof
f
ert
il
iz
ers,
incl
udi
ngseedsandot
heragr
icul
tur
al
i
nput
sandi
mpl
ement
s,andi
nri
cedi
str
ibut
ion
shal
lbegr
ant
edt
ocooper
ati
vesbyt
he
appr
opr
iat
egov
ernmentagenci
es;

"
(6)Pr
efer
ent
ial
andequi
tabl
etr
eat
menti
nthe
al
l
ocat
ionorcont
rol
ofbot
tomr
iesofcommer
cial
shi
ppi
ngv
essel
sinconnect
ionwi
tht
heshi
pment
ofgoodsandpr
oduct
sofcooper
ati
ves;

"
(7)Cooper
ati
vesandt
hei
rfeder
ati
ons,
suchas
f
arm andf
isher
ypr
oducer
sandsuppl
i
ers,
mar
ket
v
endor
sandsuchot
hercooper
ati
ves,
whi
chhav
e
f
ort
hei
rpr
imar
ypur
poset
hepr
oduct
ionand/
or
t
hemar
ket
ingofpr
oduct
sfr
om agr
icul
tur
e,
f
isher
iesandsmal
lent
repr
eneur
ial
indust
ri
esand
f
eder
ati
onst
her
eof
,shal
lhav
epr
efer
ent
ial
right
s
i
nthemanagementofpubl
i
cmar
ket
sand/
or
l
easeofpubl
i
cmar
ketf
aci
l
iti
es,
stal
l
sorspaces:
Pr
ovi
ded,
Thatt
heser
ight
sshal
lonl
ybeut
il
iz
ed
ex
clusi
vel
ybycooper
ati
ves:
Prov
ided,
fur
ther
,
Thatnocooper
ati
vef
ormi
ngaj
ointv
ent
ure,
par
tner
shi
poranyot
hersi
mil
arar
rangementwi
th
anon-
cooper
ati
veent
it
ycanut
il
iz
etheser
ight
s;

"
(8)Cooper
ati
vesengagedi
ncr
edi
tser
vices
and/
orf
eder
ati
onsshal
lbeent
it
ledt
oloanscr
edi
t
l
i
nes,
redi
scount
ingoft
hei
rloannot
es,
andot
her
el
i
gibl
epaper
swi
tht
heDev
elopmentBankoft
he
Phi
l
ippi
nes,
theLandBankoft
hePhi
l
ippi
nesand
ot
herf
inanci
ali
nst
it
uti
onsex
ceptt
heBangko
Sent
ral
ngPi
l
ipi
nas(
BSP)
;

"
ThePhi
l
ippi
neDeposi
tInsur
anceCor
por
ati
on
(
PDI
C)andot
hergov
ernmentagenci
es,
gov
ernment
-ownedandcont
rol
l
edcor
por
ati
ons
andgov
ernmentf
inanci
ali
nst
it
uti
onsshal
lpr
ovi
de
t
echni
cal
assi
stancet
oregi
ster
ednat
ional
f
eder
ati
onsanduni
onsofcooper
ati
veswhi
ch
hav
esi
gni
fi
cantengagementi
nsav
ingsandcr
edi
t
oper
ati
onsi
nor
derf
ort
hesef
eder
ati
onsand
uni
onst
oest
abl
i
shand/
orst
rengt
hent
hei
rown
aut
onomouscooper
ati
vedeposi
tinsur
ance
sy
stems;
"
(9)Apubl
i
ctr
anspor
tser
vicecooper
ati
vemaybe
ent
it
ledt
ofi
nanci
ngsuppor
tfort
heacqui
sit
ion
and/
ormai
ntenanceofl
andandseat
ranspor
t
equi
pment
,faci
l
iti
esandpar
tst
hrought
he
pr
ogr
am oft
hegov
ernmentf
inanci
ali
nst
it
uti
ons.
I
tshal
lhav
ethepr
efer
ent
ial
rightt
othe
managementandoper
ati
onofpubl
i
cter
minal
s
andpor
tswhet
herl
andorseat
ranspor
twher
ethe
cooper
ati
veoper
atesandonsecur
ingaf
ranchi
se
f
oract
iveorpot
ent
ial
rout
esf
ort
hepubl
i
c
t
ranspor
t;

"
(10)Cooper
ati
vest
ransact
ingbusi
nesswi
tht
he
Gov
ernmentoft
hePhi
l
ippi
nesoranyofi
ts
pol
i
tical
subdi
vi
sionsoranyofi
tsagenci
esor
i
nst
rument
ali
ti
es,
incl
udi
nggov
ernment
-owned
andcont
rol
l
edcor
por
ati
onsshal
lbeex
emptf
rom
pr
equal
i
ficat
ionbi
ddi
ngr
equi
rement
s
not
wit
hst
andi
ngt
hepr
ovi
sionsofRepubl
i
cAct
No.
9184,
other
wiseknownas,
theGov
ernment
Pr
ocur
ementAct
;

"
(11)Cooper
ati
veshal
lenj
oyt
hepr
ivi
l
egeofbei
ng
r
epr
esent
edbyt
hepr
ovi
nci
alorci
tyf
iscal
ort
he
Of
fi
ceoft
heSol
i
cit
orGener
al,
freeofchar
ge,
ex
ceptwhent
headv
ersepar
tyi
stheRepubl
i
cof
t
hePhi
l
ippi
nes;

"
(12)Cooper
ati
vesor
gani
zedbyf
acul
tymember
s
andempl
oyeesofeducat
ional
inst
it
uti
onsshal
l
hav
ethepr
efer
ent
ial
righti
nthemanagementof
t
hecant
eenandot
herser
vicesr
elat
edt
othe
oper
ati
onoft
heeducat
ional
inst
it
uti
onwher
ethey
ar
eempl
oyed:
Prov
ided,
Thatsuchser
vicesar
e
oper
atedwi
thi
nthepr
emi
sesoft
hesai
d
educat
ional
inst
it
uti
on;
and

"
(13)Theappr
opr
iat
ehousi
ngagenci
esand
gov
ernmentf
inanci
ali
nst
it
uti
onsshal
lcr
eat
ea
speci
alwi
ndowf
orf
inanci
nghousi
ngpr
oject
s
under
takenbycooper
ati
ves,
wit
hint
erestr
ates
andt
ermsequal
to,
orbet
tert
hant
hosegi
venf
or
soci
ali
zedhousi
ngpr
oject
s.Thi
sfi
nanci
ngshal
l
bei
nthef
orm ofbl
anketl
oansorl
ong-
ter
m
whol
esal
eloanst
oqual
i
fiedcooper
ati
ves,
wit
hout
needf
ori
ndi
vi
dual
processi
ng.
"
TheAut
hor
it
y,i
nconsul
tat
ionwi
tht
heappr
opr
iat
e
gov
ernmentagenci
esandconcer
nedcooper
ati
ve
sect
or,
shal
li
ssuer
ulesandr
egul
ati
onsonal
l
mat
ter
sconcer
ninghousi
ngcooper
ati
ves.
"

SEC.6.Ar
ti
cle64ofChapt
erVIonI
nsol
vencyof
Cooper
ati
vesoft
hesameCodei
sher
eby
r
enumber
edandamendedt
oread,
asf
oll
ows:

CHAPTERVI
I
NSOLVENCYOFCOOPERATI
VES

"
ART.63.Pr
oceedi
ngUponI
nsol
vency
.-I
ncasea
cooper
ati
vei
sunabl
etof
ulf
il
li
tsobl
i
gat
ionst
o
cr
edi
tor
sduet
oinsol
vency
,suchcooper
ati
vemay
appl
yforsuchr
emedi
esasi
tmaydeem f
itunder
t
hepr
ovi
sionsofActNo.1956,
asamended,
ot
her
wiseknownast
heI
nsol
vencyLaw.

"
Not
hingi
nthi
sAr
ti
cle,
howev
er,
precl
udes
cr
edi
tor
sfr
om seeki
ngpr
otect
ionf
rom sai
d
i
nsol
vencyl
aw.
"

SEC.7.Ar
ti
cles65,
66.67,
68,
69,
70and71of
Chapt
erVI
IonDi
ssol
uti
onofCooper
ati
vesoft
he
sameCodear
eher
ebyr
enumber
edandamended
t
oread,
asf
oll
ows:

CHAPTERVI
I
DI
SSOLUTI
ONOFCOOPERATI
VES

"
ART.64.Vol
unt
aryDi
ssol
uti
onWher
eno
Cr
edi
tor
sar
eAf
fect
ed.–I
fthedi
ssol
uti
onofa
cooper
ati
vedoesnotpr
ejudi
cet
her
ight
sofany
cr
edi
torhav
ingacl
aim agai
nsti
t,t
hedi
ssol
uti
on
maybeaf
fect
edbyamaj
ori
tyv
oteoft
heboar
dof
di
rect
ors,
andbyar
esol
uti
ondul
yadopt
edbyt
he
af
fi
rmat
ivev
oteofatl
eastt
hree-
four
ths(
3/4)of
al
lthemember
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um atameet
ingt
obehel
d
uponcal
loft
hedi
rect
ors:
Prov
ided,
Thatt
he
not
iceoft
ime,
placeandobj
ectoft
hemeet
ing
shal
lbepubl
i
shedf
ort
hree(
3)consecut
iveweeks
i
nanewspaperpubl
i
shedi
nthepl
acewher
ethe
pr
inci
pal
off
iceofsai
dcooper
ati
vei
slocat
ed,
ori
f
nonewspaperi
spubl
i
shedi
nsuchpl
ace,
ina
newspaperofgener
alci
rcul
ati
oni
nthePhi
l
ippi
nes:
Pr
ovi
ded,
fur
ther
,Thatt
henot
iceofsuchmeet
ing
i
ssentt
oeachmemberofr
ecor
dei
therby
r
egi
ster
edmai
lorbyper
sonal
del
i
ver
yatl
east
t
hir
ty(
30)day
spr
iort
osai
dmeet
ing.Acopyof
t
her
esol
uti
onaut
hor
izi
ngt
hedi
ssol
uti
onshal
lbe
cer
ti
fi
edt
obyamaj
ori
tyoft
heboar
dofdi
rect
ors
andcount
ersi
gnedbyt
heboar
dsecr
etar
y.The
Aut
hor
it
yshal
lther
euponi
ssuet
hecer
ti
fi
cat
eof
di
ssol
uti
on.

"
ART.65.Vol
unt
aryDi
ssol
uti
onWher
eCr
edi
tor
s
Ar
eAf
fect
ed.–Wher
ethedi
ssol
uti
onofa
cooper
ati
vemaypr
ejudi
cet
her
ight
sofany
cr
edi
tor
,thepet
it
ionf
ordi
ssol
uti
onshal
lbef
il
ed
wi
tht
heAut
hor
it
y.Thepet
it
ionshal
lbesi
gnedby
amaj
ori
tyofi
tsboar
dordi
rect
orsorot
her
of
fi
cer
smanagi
ngi
tsaf
fai
rs,
ver
if
iedbyi
ts
chai
rper
sonorboar
dsecr
etar
yoroneofi
ts
di
rect
orsandshal
lsetf
ort
hal
lcl
aimsand
demandsagai
nsti
tandt
hati
tsdi
ssol
uti
onwas
r
esol
veduponbyt
heaf
fi
rmat
ivev
oteofatl
east
t
hree-
four
ths(
3/4)ofal
lthemember
swi
thv
oti
ng
r
ight
s,pr
esentandconst
it
uti
ngaquor
um ata
meet
ingcal
l
edf
ort
hatpur
pose.

"
Ift
hepet
it
ioni
ssuf
fi
cienti
nfor
m andsubst
ance,
t
heAut
hor
it
yshal
li
ssueanor
derr
eci
ti
ngt
he
pur
poseoft
hepet
it
ionandshal
lfi
xadat
ewhi
ch
shal
lnotbel
esst
hant
hir
ty(
30)normor
ethan
si
xty(
60)day
saf
tert
heent
ryoft
heor
der
.Bef
ore
suchdat
e,acopyoft
heor
dershal
lbepubl
i
shed
atl
eastonceaweekf
ort
hree(
3)consecut
ive
weeksi
nanewspaperofgener
alci
rcul
ati
on
publ
i
shedi
nthemuni
cipal
i
tyorci
tywher
ethe
pr
inci
pal
off
iceoft
hecooper
ati
vei
ssi
tuat
edori
n
t
heabsenceofsuchl
ocal
newspaper
,ina
newspaperofgener
alci
rcul
ati
oni
nthePhi
l
ippi
nes,
andacopyshal
ll
ikewi
sebepost
edf
ort
hree(
3)
consecut
iveweeksi
nthr
ee(
3)publ
i
cpl
acesi
nthe
muni
cipal
i
tyorci
tywher
ethecooper
ati
ve’
sof
fi
ce
i
slocat
ed.
"
Uponex
pir
yoft
hef
ive(
5)daynot
icet
ofi
l
e
obj
ect
ions,
theAut
hor
it
yshal
lpr
oceedt
oheart
he
pet
it
ionandt
ryanyi
ssuer
aisedi
ntheobj
ect
ion
f
il
ed;
andi
ftheobj
ect
ioni
ssuf
fi
cientandt
he
mat
eri
alal
l
egat
ionsoft
hepet
it
ionar
epr
oven,
it
shal
li
ssueanor
dert
odi
ssol
vet
hecooper
ati
ve
anddi
rectt
hedi
sposi
ti
onofi
tsasset
sin
accor
dancewi
thex
ist
ingr
ulesandr
egul
ati
ons.
Theor
derofdi
ssol
uti
onshal
lsetf
ort
hther
ein:

"
(1)Theasset
sandl
i
abi
l
iti
esoft
hecooper
ati
ve;

"
(2)Thecl
aim ofanycr
edi
tor
;

"
(3)Thenumberofmember
s;and

"
(4)Thenat
ureandex
tendoft
hei
nter
est
soft
he
member
soft
hecooper
ati
ve.

"
ART.66.I
nvol
unt
aryDi
ssol
uti
on.–Acooper
ati
ve
maybedi
ssol
vedbyor
derofacompet
entcour
t
af
terduehear
ingont
hegr
oundsof
:

"
(1)Vi
olat
ionofanyl
aw,
regul
ati
onorpr
ovi
sions
ofi
tsby
laws;
or

"
(2)I
nsol
vency
.

"
ART.67.Di
ssol
uti
onbyOr
deroft
heAut
hor
it
y.–
TheAut
hor
it
ymaysuspendorr
evoke,
aft
erdue
not
iceandhear
ing,
thecer
ti
fi
cat
eofr
egi
str
ati
on
ofacooper
ati
veonanyoft
hef
oll
owi
nggr
ounds:

"
(1)Hav
ingobt
ainedi
tsr
egi
str
ati
onbyf
raud;

"
(2)Ex
ist
ingf
orani
l
legal
pur
pose;

"
(3)Wi
l
lful
viol
ati
on,
despi
tenot
icebyt
heAut
hor
it
y,
oft
hepr
ovi
sionsoft
hisCodeori
tsby
laws;

"
(4)Wi
l
lful
fai
l
uret
ooper
ateonacooper
ati
ve
basi
s;and
"
(5)Fai
l
uret
omeett
her
equi
redmi
nimum number
ofmember
sint
hecooper
ati
ve.

"
ART.68.Di
ssol
uti
onbyFai
l
uret
oOr
gani
zeand
Oper
ate.
-Ifacooper
ati
vehasnotcommenced
busi
nessandi
tsoper
ati
onwi
thi
ntwo(
2)y
ear
s
af
tert
hei
ssuanceofi
tscer
ti
fi
cat
eofr
egi
str
ati
on
orhasnotcar
ri
edoni
tsbusi
nessf
ort
wo(
2)
consecut
ivey
ear
s,t
heAut
hor
it
yshal
lsenda
f
ormal
not
icet
othesai
dcooper
ati
vet
oshow
causeast
oit
sfai
l
uret
ooper
ate.Fai
l
ureoft
he
cooper
ati
vet
opr
ompt
lypr
ovi
dej
ust
if
iabl
ecause
f
ori
tsf
ail
uret
ooper
ateshal
lwar
rantt
heAut
hor
it
y
t
odel
etei
tsnamef
rom t
her
ost
erofr
egi
ster
ed
cooper
ati
vesandshal
lbedeemeddi
ssol
ved.

"
ART.69.Li
qui
dat
ionofaCooper
ati
ve.–Ev
ery
cooper
ati
vewhosechar
terex
pir
esbyi
tsown
l
i
mit
ati
onorwhoseex
ist
encei
ster
minat
edby
v
olunt
arydi
ssol
uti
onort
hroughanappr
opr
iat
e
j
udi
cial
proceedi
ngshal
lnev
ert
hel
esscont
inuet
o
ex
istf
ort
hree(
3)y
ear
saf
tert
het
imei
tis
di
ssol
ved;
nott
ocont
inuet
hebusi
nessf
orwhi
ch
i
twasest
abl
i
shedbutf
ort
hepur
poseof
pr
osecut
inganddef
endi
ngsui
tsbyoragai
nsti
t;
set
tl
ementandcl
osur
eofi
tsaf
fai
rs;
disposi
ti
on,
conv
eyanceanddi
str
ibut
ionofi
tspr
oper
ti
esand
asset
s.

"
Atanyt
imedur
ingt
hesai
dthr
ee(
3)y
ear
s,t
he
cooper
ati
vei
saut
hor
izedandempower
edt
o
conv
eyal
lofi
tspr
oper
ti
est
otr
ust
eesf
ort
he
benef
itofi
tsmember
s,cr
edi
tor
sandot
her
per
sonsi
nint
erest
.Fr
om andaf
teranysuch
conv
eyance,
all
int
erest
swhi
cht
hecooper
ati
ve
hadi
nthepr
oper
ti
esar
eter
minat
ed.

"
Upont
hewi
ndi
ngupoft
hecooper
ati
veaf
fai
rs,
anyassetdi
str
ibut
abl
etoanycr
edi
tor
,
shar
ehol
derormemberwhoi
sunknownorcannot
bef
oundshal
lbegi
vent
othef
eder
ati
onoruni
on
t
owhi
cht
hecooper
ati
vei
saf
fi
li
atedwi
th.

"
Acooper
ati
veshal
lonl
ydi
str
ibut
eit
sasset
sor
pr
oper
ti
esuponl
awf
uldi
ssol
uti
onandaf
ter
pay
mentofal
li
tsdebt
sandl
i
abi
l
iti
es,
excepti
n
t
hecaseofdecr
easeofshar
ecapi
tal
oft
he
cooper
ati
veandasot
her
wiseal
l
owedbyt
his
Code.

"
ART.70.Rul
esandRegul
ati
onsonLi
qui
dat
ion.–
TheAut
hor
it
yshal
li
ssuet
heappr
opr
iat
e
i
mpl
ement
inggui
del
i
nesf
ort
hel
i
qui
dat
ionof
cooper
ati
ves.
"

SEC.8.Ar
ti
cles72,
73,
74,
75,
76,
77,
78,
79and80
ofChapt
erVI
IIonCapi
tal
,Pr
oper
ty,
andFundsof
t
hesameCodear
eher
ebyr
enumber
edand
amendedt
oread,
asf
oll
ows:

CHAPTERVI
II
CAPI
TAL,
PROPERTY,
ANDFUNDS

"
ART.71.Capi
tal
.-Thecapi
tal
i
zat
ionof
cooper
ati
vesandt
heaccount
ingpr
ocedur
esshal
l
begov
ernedbyt
hepr
ovi
sionsoft
hisCodeand
t
her
egul
ati
onswhi
chshal
lbei
ssued.
"
ART.72.Capi
tal
Sour
ces.
-Cooper
ati
ves
r
egi
ster
edundert
hisCodemayder
ivet
hei
rcapi
tal
f
rom anyoral
loft
hef
oll
owi
ngsour
ces:

"
(1)Member
’sshar
ecapi
tal
;

"
(2)Loansandbar
rowi
ngsi
ncl
udi
ngdeposi
ts;

"
(3)Rev
olv
ingcapi
tal
whi
chconsi
stsoft
he
def
err
edpay
mentofpat
ronager
efunds,
or
i
nter
estonshar
ecapi
tal
;and

"
(4)Subsi
dies,
donat
ions,
legaci
es,
grant
s,ai
ds
andsuchot
herassi
stancef
rom anyl
ocal
or
f
orei
gni
nst
it
uti
onwhet
herpubl
i
corpr
ivat
e:
Pr
ovi
ded,
Thatcapi
tal
comi
ngf
rom suchsubsi
des,
donat
ions,
legaci
es,
grant
s,ai
dsandot
her
assi
stanceshal
lnotbedi
vi
dedi
ntoi
ndi
vi
dual
shar
ecapi
tal
hol
dingsatanyt
imebutshal
l
i
nst
eadf
orm par
toft
hedonat
edcapi
tal
orf
undof
t
hecooper
ati
ve.
"
Upondi
ssol
uti
on,
suchdonat
edcapi
tal
shal
lbe
subj
ectt
oescheat
.

"
ART.73.Li
mit
ati
ononShar
eCapi
tal
Hol
dings.
-
Nomemberofpr
imar
ycooper
ati
veot
hert
han
cooper
ati
vei
tsel
fshal
lownorhol
dmor
ethant
en
percent
um (
10%)oft
heshar
ecapi
tal
oft
he
cooper
ati
ve.

"
Wher
eamemberofcooper
ati
vedi
es,
hishei
r
shal
lbeent
it
ledt
otheshar
esoft
hedecedent
:
Pr
ovi
ded,
Thatt
het
otal
shar
ehol
dingoft
hehei
r
doesnotex
ceedt
enpercent
um (
10%)oft
he
shar
ecapi
tal
oft
hecooper
ati
ve;
Prov
ided,
fur
ther
,
Thatt
hehei
rqual
i
fyandi
sadmi
tt
edasmember
s
oft
hecooper
ati
ve:
Prov
idedf
inal
l
y,Thatwher
e
t
hehei
rfai
l
stoqual
i
fyasamemberorwher
ehi
s
t
otal
shar
ehol
dingex
ceedst
enpercent
um (
10%)
oft
heshar
ecapi
tal
,theshar
eorshar
esex
cess
wi
l
lrev
ertt
othecooper
ati
veuponpay
mentt
othe
hei
roft
hev
alueofsuchshar
es.
"
ART.74.Assi
gnmentofShar
eCapi
tal
Cont
ri
but
ionorI
nter
est
.-Subj
ectt
othepr
ovi
sions
oft
hisCode,
nomembershal
ltr
ansf
erhi
sshar
es
ori
nter
esti
nthecooper
ati
veoranypar
tther
eof
unl
ess.

"
(1)Hehashel
dsuchshar
ecapi
tal
cont
ri
but
ionor
i
nter
estf
ornotl
esst
hanone(
1)y
ear
.

"
(2)Theassi
gnmenti
smadet
othecooper
ati
veor
t
oamemberoft
hecooper
ati
veort
oaper
son
whof
all
swi
thi
nthef
iel
doft
hemember
shi
poft
he
cooper
ati
ve;
and

"
(3)Theboar
dofdi
rect
orshasappr
ovedsuch
assi
gnment
.

"
ART.
75.Capi
tal
Bui
l
d-Up.
-Teby
lawsofev
ery
cooper
ati
veshal
lbepr
ovi
dedf
orar
easonabl
e
andr
eal
i
sti
cmembercapi
tal
bui
l
d-uppr
ogr
am t
o
al
l
owt
hecont
inui
nggr
owt
hoft
hemember
s’
i
nvest
menti
nthei
rcooper
ati
veast
hei
reconomi
c
condi
ti
onscont
inuet
oimpr
ove.

"
ART.
76.Shar
es.
-Thet
erm"
shar
e"r
efer
stoauni
t
ofcapi
tal
inapr
imar
ycooper
ati
vet
heparv
alueof
whi
chmaybef
ixedt
oanyf
igur
enotmor
ethan
Onet
housandpesos(
P1,
000.
00)
.Theshar
eof
capi
tal
ofacooper
ati
vei
sthemoneypai
dor
r
equi
redt
obepai
dfort
heoper
ati
onsoft
he
cooper
ati
ve.Themet
hodf
ort
hei
ssuanceofshar
e
cer
ti
fi
cat
esshal
lpr
escr
ibedi
nit
sby
laws.

"
ART.
77.Fi
nes.-Theby
lawsofacooper
ati
vemay
pr
escr
ibeaf
ineonunpai
dsubscr
ibedshar
e
capi
tal
.Pr
ovi
ded,
thatsuchf
inei
sfai
rand
r
easonabl
eundert
heci
rcumst
ances.

"
ART.
78.I
nvest
mentofCapi
tal
.-Acooper
ati
ve
mayi
nvesti
tscapi
tal
inanyoft
hef
oll
owi
ng:

"
(a)I
nshar
esordebent
uresorsecur
it
iesofany
ot
hercooper
ati
ve;
"
(b)I
nanyr
eput
abl
ebanki
nthel
ocal
i
ty,
orany
cooper
ati
ve;

"
(c)I
nsecur
it
iesi
ssuedorguar
ant
eedbyt
he
Gov
ernment
;

"
(d)I
nreal
stat
epr
imar
il
yfort
heuseoft
he
cooper
ati
veori
tsmember
s;or

"
(e)I
nanyot
hermanneraut
hor
izedi
ntheby
laws.

"
ART.79.Rev
olv
ingCapi
tal
.–Thegener
al
assembl
yofanycooper
ati
vemayaut
hor
izet
he
boar
dofdi
rect
orst
orai
sear
evol
vi
ngcapi
tal
to
st
rengt
heni
tscapi
tal
str
uct
urebydef
err
ingt
he
pay
mentofpat
ronager
efundsandi
nter
eston
shar
ecapi
tal
orbyt
heaut
hor
izeddeduct
ionofa
per
cent
agef
rom t
hepr
oceedsofpr
oduct
ssol
dor
ser
vicesr
ender
ed,
orperuni
tofpr
oductor
ser
viceshandl
ed.Theboar
dofdi
rect
orsshal
l
i
ssuer
evol
vi
ngcapi
tal
cer
ti
fi
cat
eswi
thser
ial
number
,name,
amount
,andr
ateofi
nter
estt
obe
pai
dandshal
ldi
sti
nct
lysetf
ort
hthet
imeof
r
eti
rementofsuchcer
ti
fi
cat
esandt
heamount
sto
ber
etur
ned.
"

SEC.9.Ar
ti
cles81,
82,
83,
84and85ofChapt
erI
X
onAudi
t,I
nqui
ryandMember
s’Ri
ghtt
oEx
ami
ne
oft
hesameCodear
eher
ebyr
enumber
edand
amendedt
oread,
asf
oll
ows:

"
ART.80.Annual
Audi
t.–Cooper
ati
vesr
egi
ster
ed
undert
hisCodeshal
lbesubj
ectt
oanannual
f
inanci
al,
per
for
manceandsoci
alaudi
t.The
f
inanci
alaudi
tshal
lbeconduct
edbyanex
ter
nal
audi
torwhosat
isf
iesal
lthef
oll
owi
ng
qual
i
ficat
ions:

"
(1)Hei
sindependentoft
hecooper
ati
veoranyof
i
tssubsi
diar
ythathei
saudi
ti
ng;
and

"
(2)Hei
samemberi
ngoodst
andi
ngoft
he
Phi
l
ippi
neI
nst
it
uteofCer
ti
fi
edPubl
i
cAccount
ant
s
(
PICPA)andi
saccr
edi
tedbybot
htheBoar
dand
Account
ancyandt
heAut
hor
it
y.

"
Thesoci
alaudi
tshal
lbeconduct
edbyan
i
ndependentsoci
alaudi
toraccr
edi
tedbyt
he
Aut
hor
it
y.

"
Per
for
manceandsoci
alaudi
trepor
tswhi
ch
cont
aint
hef
indi
ngsandr
ecommendat
ionsoft
he
audi
torshal
lbesubmi
tt
edt
otheboar
dof
di
rect
ors.

"
TheAut
hor
it
y,i
nconsul
tat
ionwi
tht
hecooper
ati
ve
sect
or,
shal
lpr
omul
gat
ether
ulesandst
andar
ds
f
ort
hesoci
alaudi
tofcooper
ati
ves.

"
ART.81.Audi
tRepor
t.–Theaudi
torshal
lsubmi
t
t
otheboar
dofdi
rect
orsandt
otheaudi
t
commi
tt
eet
hef
inanci
alaudi
trepor
twhi
chshal
l
bei
naccor
dancewi
tht
hegener
all
yaccept
ed
audi
ti
ngst
andar
dsf
orcooper
ati
vesasj
oint
ly
pr
omul
gat
edbyt
hePhi
l
ippi
neI
nst
it
uteofCer
ti
fi
ed
Publ
i
cAccount
ant
s(PI
CPA)andt
heAut
hor
it
y.
"
Ther
eaf
ter
,theboar
dofdi
rect
orsshal
lpr
esent
t
hecompl
eteaudi
trepor
ttot
hegener
alassembl
y
i
nit
snex
tmeet
ing.

"
ART.82.Nonl
i
abi
l
ityf
orDef
amat
ions.–The
audi
tori
snotl
i
abl
etoanyper
soni
nanact
ionf
or
def
amat
ionbasedonanyact
,done,
orany
st
atementmadebyhi
mingoodf
ait
hin
connect
ionwi
thanymat
terhei
saut
hor
izedor
r
equi
redt
odopur
suantt
othi
sCode.

"
ART.83.Ri
ghtt
oEx
ami
ne.–Amembershal
l
hav
ether
ightt
oex
ami
net
her
ecor
dsr
equi
redt
o
bekeptbyt
hecooper
ati
veunderAr
ti
cle52oft
his
Codedur
ingr
easonabl
ehour
sonbusi
nessday
s
andhemaydemand,
inwr
it
ing,
foracopyof
ex
cer
ptsf
rom sai
drecor
dswi
thoutchar
geex
cept
t
hecostofpr
oduct
ion.

"
Anyof
fi
ceroft
hecooper
ati
vewhoshal
lref
uset
o
al
l
owanymemberoft
hecooper
ati
vet
oex
ami
ne
andcopyex
cer
ptsf
rom i
tsr
ecor
dsshal
lbel
i
abl
e
t
osuchmemberf
ordamagesandshal
lbegui
l
ty
ofanof
fensewhi
chshal
lbepuni
shabl
eunder
Ar
ti
cle140oft
hisCode:
Prov
ided,
Thati
fsuch
r
efusal
ispur
suantt
oar
esol
uti
onoror
deroft
he
boar
dofdi
rect
ors,
thel
i
abi
l
ityundert
hisar
ti
cle
shal
lbei
mposedupont
hedi
rect
orswhov
otedf
or
suchr
efusal
:Pr
ovi
ded,
fur
ther
,Thati
tshal
lbea
def
enset
oanyact
ionundert
hisar
ti
clet
hatt
he
memberdemandi
ngt
oex
ami
neandcopy
ex
cer
ptsf
rom t
hecooper
ati
ver
ecor
dshas
i
mpr
oper
lyusedanyi
nfor
mat
ionsecur
edt
hrough
anypr
iorex
ami
nat
ionoft
her
ecor
dsofsuch
cooper
ati
veorwasnotact
ingi
ngoodf
ait
horf
or
al
egi
ti
mat
epur
posei
nmaki
nghi
sdemand.

"
ART.84.Saf
etyofRecor
ds.–Ev
erycooper
ati
ve
shal
l
,ati
tspr
inci
pal
off
ice,
keepandcar
eful
l
y
pr
eser
vet
her
ecor
dsr
equi
redbyt
hisCodet
obe
pr
epar
edandmai
ntai
ned.I
tshal
ltakeal
l
necessar
ypr
ecaut
iont
opr
eventi
tsl
oss,
dest
ruct
ionorf
alsi
fi
cat
ion.
"
SEC.10.Ar
ti
cles86and87ofChapt
erXon
Al
l
ocat
ionandDi
str
ibut
ionofNetSur
plusoft
he
sameCodear
eher
ebyr
enumber
edandamended
t
oread,
asf
oll
ows:

CHAPTERX
ALLOCATI
ONANDDI
STRI
BUTI
ONOFNET
SURPLUS

"
ART.85.NetSur
plus.–Not
wit
hst
andi
ngt
he
pr
ovi
sionsofex
ist
ingl
aws,
thenetsur
plusof
cooper
ati
vesshal
lbedet
ermi
nedi
naccor
dance
wi
thi
tsby
laws.Ev
erycooper
ati
veshal
ldet
ermi
ne
i
tsnetsur
plusatt
hecl
oseofev
eryf
iscal
yearand
atsuchot
hert
imesasmaybepr
escr
ibedbyt
he
by
laws.

"
Anypr
ovi
sionofl
awt
othecont
rar
y
not
wit
hst
andi
ng,
thenetsur
plusshal
lnotbe
const
ruedaspr
ofi
tbutasanex
cessofpay
ment
s
madebyt
hemember
sfort
hel
oansbor
rowed,
or
t
hegoodsandser
vicesav
ail
edbyt
hem f
rom t
he
cooper
ati
veort
hedi
ff
erenceoft
her
ight
ful
amountduet
othemember
sfort
hei
rpr
oduct
s
sol
dorser
vicesr
ender
edt
othecooper
ati
ve
i
ncl
udi
ngot
heri
nfl
owsofasset
sresul
ti
ngf
rom i
ts
ot
heroper
ati
ngact
ivi
ti
esandwhi
chshal
lbe
deemedt
ohav
ebeenr
etur
nedt
othem i
fthe
samei
sdi
str
ibut
edaspr
escr
ibedher
ein.

"
ART.86.Or
derofDi
str
ibut
ion.–Thenetsur
plus
ofev
erycooper
ati
veshal
lbedi
str
ibut
edas
f
oll
ows:

"
(1)Anamountf
ort
her
eser
vef
undwhi
chshal
lbe
atl
eastt
enpercent
um (
10%)ofnetsur
plus:
Pr
ovi
ded,
That
,int
hef
ir
stf
ive(
5)y
ear
sof
oper
ati
onaf
terr
egi
str
ati
on,
thi
samountshal
lnot
bel
esst
hanf
if
typercent
um (
50%)oft
henet
sur
plus:

"
(a)Ther
eser
vef
undshal
lbeusedf
ort
hest
abi
l
ity
oft
hecooper
ati
veandt
omeetnetl
ossesi
nit
s
oper
ati
ons.Thegener
alassembl
ymaydecr
ease
t
heamountal
l
ocat
edt
other
eser
vef
undwhent
he
r
eser
vef
undal
readyex
ceedst
heshar
ecapi
tal
.

"
Anysum r
ecov
eredoni
temspr
evi
ousl
ychar
ged
t
other
eser
vef
undshal
lbecr
edi
tedt
osuchf
und.

"
(b)Ther
eser
vef
undshal
lnotbeut
il
iz
edf
or
i
nvest
ment
,ot
hert
hant
hoseal
l
owedi
nthi
sCode.
Suchsum oft
her
eser
vef
undi
nex
cessoft
he
shar
ecapi
tal
maybeusedatany
timef
orany
pr
ojectt
hatwoul
dex
pandt
heoper
ati
onsoft
he
cooper
ati
veupont
her
esol
uti
onoft
hegener
al
assembl
y.

"
(c)Upont
hedi
ssol
uti
onoft
hecooper
ati
ve,
the
r
eser
vef
undshal
lnotbedi
str
ibut
edamongt
he
member
s.Thegener
alassembl
ymayr
esol
ves:

"
(i
)Toest
abl
i
shausuf
ruct
uar
ytr
ustf
undf
ort
he
benef
itofanyf
eder
ati
onoruni
ont
owhi
cht
he
cooper
ati
vei
saf
fi
li
ated;
and
"
(i
i)Todonat
e,cont
ri
but
e,orot
her
wisedi
sposeof
t
heamountf
ort
hebenef
itoft
hecommuni
ty
wher
ethecooper
ati
veoper
ates.I
fthemember
s
cannotdeci
deupont
hedi
sposal
oft
her
eser
ve
f
und,
thesameshal
lgot
othef
eder
ati
onoruni
on
t
owhi
cht
hecooper
ati
vei
saf
fi
li
ated.

"
(2)Anamountf
ort
heeducat
ionandt
rai
ningf
und,
shal
lnotbemor
ethant
enpercent
um (
10%)of
t
henetsur
plus.Theby
lawsmaypr
ovi
det
hat
cer
tai
nfeesorapor
ti
ont
her
eofbecr
edi
tedt
o
suchf
und.Thef
undshal
lpr
ovi
def
ort
het
rai
ning,
dev
elopmentandsi
mil
arot
hercooper
ati
ve
act
ivi
ti
esgear
edt
owar
dst
hegr
owt
hoft
he
cooper
ati
vemov
ement
:

"
(a)Hal
foft
heamount
str
ansf
err
edt
othe
educat
ionandt
rai
ningf
undannual
l
yundert
his
subsect
ionshal
lbespentbyt
hecooper
ati
vef
or
educat
ionandt
rai
ningpur
poses;
whi
l
etheot
her
hal
fmayber
emi
tt
edt
oauni
onorf
eder
ati
on
chosenbyt
hecooper
ati
veorofwhi
chi
tisa
member
.Thesai
duni
onorf
eder
ati
onshal
lsubmi
t
t
otheAut
hor
it
yandt
oit
scont
ri
but
ing
cooper
ati
vest
hef
oll
owi
ngschedul
es:

"
(i
)Li
stofcooper
ati
veswhi
chhav
eremi
tt
edt
hei
r
r
espect
iveCooper
ati
veEducat
ionandTr
aini
ng
Funds(
CETF)
;

"
(i
i)Busi
nessconsul
tancyassi
stancet
oincl
ude
t
henat
ureandcost
;and

"
(i
ii
)Ot
hert
rai
ningact
ivi
ti
esunder
takenspeci
fyi
ng
t
her
eint
henat
ure,
par
ti
cipant
sandcostofeach
act
ivi
ty.

"
(b)Upont
hedi
ssol
uti
onoft
hecooper
ati
ve,
the
unex
pendedbal
anceoft
heeducat
ionandt
rai
ning
f
undapper
tai
ningt
othecooper
ati
veshal
lbe
cr
edi
tedt
othecooper
ati
veeducat
ionandt
rai
ning
f
undoft
hechosenuni
onorf
eder
ati
on.

"
(3)Anamountf
ort
hecommuni
tydev
elopment
f
und,
whi
chshal
lnotbel
esst
hant
hreeper
cent
um (
3%)oft
henetsur
plus.Thecommuni
ty
dev
elopmentf
undshal
lbeusedf
orpr
oject
sor
act
ivi
ti
est
hatwi
l
lbenef
itt
hecommuni
tywher
e
t
hecooper
ati
veoper
ates.

"
(4)Anopt
ional
fund,
alandandbui
l
ding,
andany
ot
hernecessar
yfundt
het
otal
ofwhi
chshal
lnot
ex
ceedsev
enpercent
um (
7%)
.

"
(5)Ther
emai
ningnetsur
plusshal
lbemade
av
ail
abl
etot
hemember
sint
hef
orm ofi
nter
est
onshar
ecapi
tal
nott
oex
ceedt
henor
mal
rat
eof
r
etur
nouri
nvest
ment
sandpat
ronager
efunds:
Pr
ovi
ded,
Thatanyamountr
emai
ningaf
tert
he
al
l
owabl
eint
erestandt
hepat
ronager
efundhav
e
beendeduct
edshal
lbecr
edi
tedt
other
eser
ve
f
und.

"
Thesum al
l
ocat
edf
orpat
ronager
efundsshal
lbe
madeav
ail
abl
eatt
hesamer
atet
oal
lpat
ronsof
t
hecooper
ati
vei
npr
opor
ti
ont
othei
rindi
vi
dual
pat
ronage:
Prov
ided,
That
:
"
(a)I
nthecaseofamemberpat
ronwi
thpai
d-up
shar
ecapi
tal
cont
ri
but
ion,
hispr
opor
ti
onat
e
amountofpat
ronager
efundshal
lbepai
dtohi
m
unl
essheagr
eest
ocr
edi
ttheamountt
ohi
s
accountasaddi
ti
onal
shar
ecapi
tal
cont
ri
but
ion;

"
(b)I
nthecaseofamemberpat
ronwi
thunpai
d
shar
ecapi
tal
cont
ri
but
ion,
hispr
opor
ti
onat
e
amountofpat
ronager
efundshal
lbecr
edi
tedt
o
hi
saccountunt
ilhi
saccountunt
ilhi
sshar
e
capi
tal
cont
ri
but
ionhasbeenf
ull
ypai
d;

"
(c)I
nthecaseofanon-
memberpat
ron,
his
pr
opor
ti
onat
eamountofpat
ronager
efundshal
l
besetasi
dei
nagener
alf
undf
orsuchpat
rons
andshal
lbeal
l
ocat
edt
oindi
vi
dual
non-
member
pat
ronsonl
yuponr
equestandpr
esent
ati
onof
ev
idenceoft
heamountofhi
spat
ronage.The
amountsoal
l
ocat
edshal
lbecr
edi
tedt
osuch
pat
ront
owar
dpay
mentoft
hemi
nimum capi
tal
cont
ri
but
ionf
ormember
shi
p.Whenasum equal
t
othi
samounthasaccumul
atedatanyt
ime
wi
thi
naper
iodspeci
fi
edi
ntheby
laws,
such
pat
ronshal
lbedeemedandbecomeamemberof
t
hecooper
ati
vei
fhesoagr
eesorr
equest
sand
compl
i
eswi
tht
hepr
ovi
sionsoft
heby
lawsf
or
admi
ssi
ont
omember
shi
p;and

"
(d)I
fwi
thi
nanyper
iodoft
imespeci
fi
edi
nthe
by
laws,
anysubscr
iberwhohasnotf
ull
ypai
dhi
s
subscr
ibedshar
ecapi
tal
oranynon-
member
pat
ronwhohasaccumul
atedt
hesum necessar
y
f
ormember
shi
pbutwhodoesnotr
equestnor
agr
eet
obecomeamemberorf
ail
stocompl
ywi
th
t
hepr
ovi
sionsoft
heby
lawsf
oradmi
ssi
ont
o
member
shi
p,t
heamountsoaccumul
atedor
cr
edi
tedt
othei
raccountt
oget
herwi
thanypar
tof
t
hegener
alf
undf
ornonmemberpat
ronsshal
lbe
cr
edi
tedt
other
eser
vef
undort
otheeducat
ion
andt
rai
ningf
undoft
hecooper
ati
ve,
att
heopt
ion
oft
hecooper
ati
ve.
"

SEC.11.Ar
ti
cles88,
89,
90,
91,
92,
93,
94and95
ofChapt
erXIont
heSpeci
alPr
ovi
sionsRel
ati
ngt
o
Agr
ari
anRef
orm Cooper
ati
vesoft
hesameCode
ar
eher
ebyr
enumber
edr
eti
tl
edandamendedt
o
r
ead,
asf
oll
ows:

CHAPTERXI
AGRARI
ANREFORM COOPERATI
VES

"
ART.87.Cov
erage.–Thepr
ovi
sionsoft
his
Chapt
ershal
lpr
imar
il
ygov
ernagr
ari
anr
efor
m
cooper
ati
ves:
Prov
ided,
Thatt
hepr
ovi
sionsoft
he
ot
herchapt
ersoft
hisCodeshal
lappl
y
suppl
etor
il
yex
cepti
nsof
arast
hisChapt
er
ot
her
wisepr
ovi
des.

"
ART.88.Def
ini
ti
onandPur
pose.–Anagr
ari
an
r
efor
m cooper
ati
vei
soneor
gani
zedbymar
ginal
f
armer
s,maj
ori
tyofwhi
char
eagr
ari
anr
efor
m
benef
ici
ari
es,
fort
hepur
poseofdev
elopi
ngan
appr
opr
iat
esy
stem ofl
andt
enur
e,l
and
dev
elopment
,landconsol
i
dat
ionorl
and
managementi
nar
eascov
eredbyagr
ari
anr
efor
m.

"
Anagr
ari
anr
efor
m cooper
ati
veasdef
inedshal
l
beor
gani
zedf
oranyoral
loft
hef
oll
owi
ng
pur
poses:

"
(1)Todev
elopanappr
opr
iat
esy
stem ofl
and
t
enur
e,l
anddev
elopment
,landconsol
i
dat
ionor
l
andmanagementi
nar
eascov
eredbyagr
ari
an
r
efor
m;

"
(2)Tocoor
dinat
eandf
aci
l
itat
ethedi
ssemi
nat
ion
ofsci
ent
if
icmet
hodsofpr
oduct
ion,
andpr
ovi
de
assi
stancei
nthest
orage,
transpor
t,and
mar
ket
ingoff
arm pr
oduct
sforagr
ari
anr
efor
m
benef
ici
ari
esandt
hei
rimmedi
atef
ami
l
y,
her
einaf
terr
efer
redt
oas"
benef
ici
ari
es"
;

"
(3)Topr
ovi
def
inanci
alf
aci
l
iti
est
obenef
ici
ari
es
f
orpr
ovi
dentorpr
oduct
ivepur
posesat
r
easonabl
ecost
s;

"
(4)Toar
rangeandf
aci
l
itat
etheex
pedi
ti
ous
t
ransf
erofappr
opr
iat
eandsui
tabl
etechnol
ogyt
o
benef
ici
ari
esandmar
ginal
far
mer
satt
hel
owest
possi
blecost
;

"
(5)Topr
ovi
desoci
alsecur
it
ybenef
it
s,heal
th,
medi
cal
andsoci
ali
nsur
ancebenef
it
sandot
her
soci
alandeconomi
cbenef
it
sthatpr
omot
ethe
gener
alwel
far
eoft
heagr
ari
anr
efor
m
benef
ici
ari
esandmar
ginal
far
mer
s;

"
(6)Topr
ovi
denon-
for
mal
educat
ion,
v
ocat
ional
/techni
cal
trai
ning,
andl
i
vel
i
hood
pr
ogr
amst
obenef
ici
ari
esandmar
ginal
far
mer
s;

"
(7)Toactascondui
tsf
orex
ter
nal
assi
stanceand
ser
vicest
othebenef
ici
ari
esandmar
ginal
far
mer
s;

"
(8)Tounder
takeacompr
ehensi
veandi
ntegr
ated
dev
elopmentpr
ogr
am i
nagr
ari
anr
efor
m and
r
eset
tl
ementar
easwi
thspeci
alconcer
nfort
he
dev
elopmentofagr
o-based,
mar
ine-
based,
and
cot
tage-
basedi
ndust
ri
es;
"
(9)Tor
epr
esentt
hebenef
ici
ari
esonanyoral
l
mat
ter
sthataf
fectt
hei
rint
erest
;and

"
(10)Tounder
takesuchot
hereconomi
corsoci
al
act
ivi
ti
esasmaybenecessar
yori
nci
dent
ali
nthe
pur
sui
toft
hef
oregoi
ngpur
poses.

"
ART.89.Cooper
ati
veEst
ate.–Landhol
dingsl
i
ke
pl
ant
ati
ons,
est
atesorhaci
endasacqui
redbyt
he
St
atef
ort
hebenef
itoft
hewor
ker
sinaccor
dance
wi
tht
heCompr
ehensi
veAgr
ari
anRef
orm Pr
ogr
am
whi
chshal
lbecol
l
ect
ivel
yownedbyt
hewor
ker
-
benef
ici
ari
esunderacooper
ati
veset
-up.

"
ART.90.I
nfr
ast
ruct
ure.–I
nagr
ari
anr
efor
m and
r
eset
tl
ementar
eas,
theGov
ernmentshal
lgr
antt
o
agr
ari
anr
efor
m cooper
ati
vespr
efer
ent
ial
t
reat
menti
ntheconst
ruct
ion,
mai
ntenanceand
managementofr
oads,
bri
dges,
canal
s,whar
ves,
por
ts,
reser
voi
rs,
irr
igat
ionsy
stems,
wat
erwor
ks
sy
stems,
andot
heri
nfr
ast
ruct
ureswi
th
gov
ernmentf
undi
ng.Fort
hispur
pose,
the
Gov
ernmentshal
lpr
ovi
det
echni
cal
assi
stance,
f
aci
l
iti
esandequi
pmentt
osuchagr
ari
anr
efor
m
cooper
ati
ves.

"
ART.91.LeaseofPubl
i
cLands.–The
Gov
ernmentmayl
easepubl
i
clandst
oany
agr
ari
anr
efor
m cooper
ati
vef
oraper
iodnot
ex
ceedi
ngt
went
y-f
ive(
25%)y
ear
s,subj
ectt
o
r
enewal
foranot
hert
went
y-f
ive(
25)y
ear
sonl
y:
Pr
ovi
ded,
Thatt
heappl
i
cat
ionf
orr
enewal
shal
lbe
madeone(
1)y
earbef
oret
heex
pir
ati
onoft
he
l
ease:
Prov
ided,
fur
ther
,Thatsuchl
easeshal
lbe
f
ort
heex
clusi
veuseandbenef
itoft
he
benef
ici
ari
esandmar
ginal
far
mer
ssubj
ectt
othe
pr
ovi
sionsoft
heCompr
ehensi
veAgr
ari
anRef
orm
Pr
ogr
am.

"
ART.92.Pr
efer
ent
ial
Right
.–I
nagr
ari
anr
efor
m
ar
eas,
anagr
ari
anr
efor
m cooper
ati
veshal
lhav
e
t
hepr
efer
ent
ial
righti
nthegr
antoff
ranchi
seand
cer
ti
fi
cat
eofpubl
i
cconv
eni
enceandnecessi
tyf
or
t
heoper
ati
onofpubl
i
cut
il
it
iesandser
vices:
Pr
ovi
ded,
Thati
tmeet
sther
equi
rement
sand
condi
ti
onsi
mposedbyt
heappr
opr
iat
e
gov
ernmentagencygr
ant
ingt
hef
ranchi
seor
cer
ti
fi
cat
eofpubl
i
cconv
eni
enceandnecessi
ty.I
f
t
her
eisanel
ect
ri
cser
vicepr
ovi
deri
nthear
ea,
it
shal
lupont
her
equestofanagr
ari
anr
efor
m
cooper
ati
ve,
immedi
atel
ypr
ovi
deel
ect
ri
cser
vices
t
otheagr
ari
anr
efor
m ar
eas.I
ftheel
ect
ri
cser
vice
pr
ovi
derf
ail
stopr
ovi
det
heser
vicesr
equest
ed
wi
thi
naper
iodofone(
1)y
ear
,theagr
ari
anr
efor
m
cooper
ati
veconcer
nedmayunder
taket
opr
ovi
de
t
heel
ect
ri
cser
vicesi
nthear
eat
hroughi
tsown
r
esour
ces.Al
li
nvest
ment
smadebyt
hesai
d
agr
ari
anr
efor
m cooper
ati
vef
ort
heel
ect
ri
fi
cat
ion
oft
heagr
ari
anr
efor
mreset
tl
ementar
easshal
lbe
t
hesubj
ectofsal
etot
heel
ect
ri
cser
vicepr
ovi
der
oncei
ttakesont
heser
vice.

"
ART.93.Pr
ivi
l
eges.–Subj
ectt
osuchr
easonabl
e
t
ermsandcondi
ti
onsast
heDepar
tmentof
Agr
ari
anRef
orm(
DAR)andt
heAut
hor
it
ymay
i
mpose,
agr
ari
anr
efor
m cooper
ati
vesmaybe
gi
vent
heex
clusi
ver
ightt
odoanyoral
loft
he
f
oll
owi
ngeconomi
cact
ivi
ti
esi
nagr
ari
anr
efor
m
andr
eset
tl
ementar
eas;
"
(1)Suppl
yanddi
str
ibut
ionofconsumer
,
agr
icul
tur
al,
aqua-
cul
tur
al,
andi
ndust
ri
algoods,
pr
oduct
ioni
nput
s,andr
awmat
eri
alsandsuppl
i
es,
machi
ner
y,equi
pment
,faci
l
iti
esandot
her
ser
vicesandr
equi
rement
soft
hebenef
ici
ari
es
andmar
ginal
far
mer
satr
easonabl
epr
ices;

"
(2)Mar
ket
ingoft
hepr
oduct
sandser
vicesoft
he
benef
ici
ari
esi
nlocal
andf
orei
gnmar
ket
s;

"
(3)Pr
ocessi
ngoft
hemember
s’pr
oduct
sint
o
f
ini
shedconsumerori
ndust
ri
algoodsf
or
domest
icconsumpt
ionorf
orex
por
t;

"
(4)Pr
ovi
sionofessent
ial
publ
i
cser
vicesatcost
suchaspower
,ir
ri
gat
ion,
pot
abl
ewat
er,
passengerand/
orcar
got
ranspor
tat
ionbyl
andor
sea,
communi
cat
ionser
vices,
andpubl
i
cheal
th
andmedi
cal
car
eser
vices;

"
(5)Management
,conser
vat
ion,
andcommer
cial
dev
elopmentofmar
ine,
for
est
ry,
miner
al,
wat
er,
andot
hernat
ural
resour
cessubj
ectt
ocompl
i
ance
wi
tht
hel
awsandr
egul
ati
onsonenv
ironment
al
andecol
ogi
cal
cont
rol
s;and

"
(6)Pr
ovi
sionoff
inanci
al,
technol
ogi
cal
,andot
her
ser
vicesandf
aci
l
iti
esr
equi
redbyt
he
benef
ici
ari
esi
nthei
rdai
l
yli
vesandl
i
vel
i
hood.

"
TheGov
ernmentshal
lpr
ovi
det
henecessar
y
f
inanci
alandt
echni
cal
assi
stancet
oagr
ari
an
r
efor
m cooper
ati
vest
oenabl
ethem t
odi
schar
ge
ef
fect
ivel
ythei
rpur
posesundert
hisar
ti
cle.The
DAR,
theAut
hor
it
yandt
heBSPshal
ldr
awupa
j
ointpr
ogr
am f
ort
heor
gani
zat
ionandf
inanci
ngof
t
heagr
ari
anr
efor
m cooper
ati
vessubj
ectoft
his
Chapt
er.Thej
ointpr
ogr
am shal
lbegear
ed
t
owar
dst
hebenef
ici
ari
esgr
adual
assumpt
ionof
f
ull
owner
shi
pandmanagementcont
rol
oft
he
agr
ari
anr
efor
m cooper
ati
ves.

"
ART.94.Or
gani
zat
ionandRegi
str
ati
on.–
Agr
ari
anr
efor
m cooper
ati
vesmaybeor
gani
zed
andr
egi
ster
edundert
hisCodeonl
yuponpr
ior
wr
it
tenv
eri
fi
cat
ionbyt
heDARt
otheef
fectt
hat
t
hesamei
sneededanddesi
redbyt
he
benef
ici
ari
es;
resul
tsofast
udyt
hathasbeen
conduct
edf
air
lyi
ndi
cat
etheeconomi
cfeasi
bil
i
ty
ofor
gani
zi
ngt
hesameandt
hati
twi
l
lbe
economi
cal
l
yvi
abl
eini
tsoper
ati
ons;
andt
hatt
he
samemaynowbeor
gani
zedandr
egi
ster
edi
n
accor
dancewi
thr
equi
rement
soft
hisCode.

"
TheAut
hor
it
y,i
nconsul
tat
ionwi
tht
heconcer
ned
gov
ernmentagenci
esandcooper
ati
vesect
or,
shal
li
ssueappr
opr
iat
erul
esandr
egul
ati
ons
per
tai
ningt
othepr
ovi
sionsoft
hisChapt
er.
"

SEC.12.Ar
ti
cles96,
97and98ofChapt
erXI
Ion
t
heSpeci
alPr
ovi
sionsonPubl
i
cSer
vices
Cooper
ati
vesoft
hesameCodear
eher
eby
t
ransf
err
edt
oanot
herchapt
er.Chapt
erXI
Ias
amendedshal
lnowr
ead,
asf
oll
ows:

CHAPTERXI
I
COOPERATI
VEBANKS

"
ART.95.Gov
erni
ngLaw.–Thepr
ovi
sionsoft
his
Chapt
ershal
lpr
imar
il
ygov
erncooper
ati
vebanks
r
egi
ster
edundert
hisCodeandt
heot
her
pr
ovi
sionsoft
hisCodeshal
lappl
ytot
hem onl
y
i
nsof
arast
heyar
enoti
nconsi
stentwi
tht
he
pr
ovi
sionscont
ainedi
nthi
sChapt
er.

"
ART.96.Super
visi
on.–Thecooper
ati
vebanks
r
egi
ster
edundert
hisCodeshal
lbeundert
he
super
visi
onoft
heBSP.TheBSP,
upon
consul
tat
ionwi
tht
heAut
hor
it
yandt
heconcer
ned
cooper
ati
vesect
or,
shal
lfor
mul
ategui
del
i
nes
r
egar
dingt
heoper
ati
onsandt
hegov
ernanceof
cooper
ati
vebanks.Thesegui
del
i
nesshal
lgi
ve
duer
ecogni
ti
ont
otheuni
quenat
ureand
char
act
erofcooper
ati
vebanks.Tot
hisend,
cooper
ati
vebanksshal
lpr
ovi
def
inanci
aland
banki
ngser
vicest
oit
smember
s.

"
ART.97.Or
gani
zat
ion,
Member
shi
pand
Est
abl
i
shmentofaCooper
ati
veBank.–(
1)
Cooper
ati
veor
gani
zat
ionsdul
yest
abl
i
shedand
r
egi
ster
edundert
hisCodemayor
gani
zea
cooper
ati
vebank,
whi
chshal
ll
ikewi
sebe
consi
der
edacooper
ati
ver
egi
str
abl
eunder
pr
ovi
sionsoft
hisCodesubj
ectt
othe
r
equi
rement
sandr
equi
sit
eaut
hor
izat
ionf
rom t
he
BSP.Onl
yonecooper
ati
vebankmaybe
est
abl
i
shedi
neachpr
ovi
nce:
Prov
ided,
Thatan
addi
ti
onal
cooper
ati
vebankmaybeest
abl
i
shedi
n
t
hesamepr
ovi
ncet
ocat
ert
otheneedsi
nthe
samepr
ovi
ncet
ocat
ert
otheneedsoft
hel
ocal
i
ty
dependi
ngont
heeconomi
ccondi
ti
onsoft
he
pr
ovi
nceasmaybedet
ermi
nedbyt
heBSP:
Pr
ovi
ded,
fur
ther
,Thatt
headdi
ti
onal
cooper
ati
ve
bankshal
lbel
ocat
edi
ntheCi
tyormuni
cipal
i
ty
ot
hert
hatt
heci
tyormuni
cipal
i
tywher
ethef
ir
st
cooper
ati
vebanki
slocat
ed.

"
(2)Member
shi
pinacooper
ati
vebankshal
lei
ther
ber
egul
arorassoci
ate.Regul
armember
shi
pshal
l
bel
i
mit
edt
ocooper
ati
veor
gani
zat
ionswhi
char
e
hol
der
sofcommonshar
esoft
hebank.Associ
ate
member
sar
ethosesubscr
ibi
ngandhol
ding
pr
efer
redshar
esoft
hebank,
whi
chmayi
ncl
ude
butar
enotl
i
mit
edt
othef
oll
owi
ng:

"
(a)I
ndi
vi
dual
member
soft
hebank’
smember
-
pr
imar
ycooper
ati
ves;
and

"
(b)SamahangNay
onandMuni
cipal
Kat
ipunanng
mgaSamahangNay
on(
MKSN)whi
chhel
d
commonshar
esofcooper
ati
vebankspr
iort
othe
ef
fect
ivi
tyoft
hisActshal
lappl
yforconv
ersi
ont
o
f
ull
-pl
edgedcooper
ati
vesi
nor
dert
omai
ntai
nthei
r
st
atusasr
egul
armember
sofcooper
ati
vebanks:
Pr
ovi
ded,
Thatt
heyshal
lnot
if
ythecooper
ati
ve
bankconcer
nedt
hei
rint
ent
iont
oconv
ertwi
thi
na
per
iodofni
net
y(90)day
sfr
om t
heef
fect
ivi
tyof
t
hisAct
.SamahangNay
onandMKSNar
eher
eby
gi
venaper
iodofone(
1)y
earf
rom t
heef
fect
ivi
ty
oft
hisActt
ocompl
etet
hei
rconv
ersi
onas
cooper
ati
ves.Cooper
ati
vebankshal
lex
ert
r
easonabl
eef
for
tst
oinf
ormt
hei
rmember
SamahangNay
onandMKSNt
ofi
nal
l
yconv
ertor
t
ogi
vet
henot
iceofconv
ersi
onwi
thi
nthe
pr
escr
ibedper
iod.Upont
hef
ail
ureoft
he
SamahangNay
onandMKSNt
ofi
nal
l
yconv
ertt
o
af
ull
-pl
edgedcooper
ati
vewi
thi
nthemax
imum
per
iodofone(
1)y
ear
,thecooper
ati
vebank
concer
nedmayconv
ertt
hecommonshar
eshel
d
bysuchassoci
ati
onst
opr
efer
redshar
es.

"
(3)Thear
ti
clesofcooper
ati
veandby
lawsofa
cooper
ati
vebank,
oranyamendmentt
her
eto,
shal
l
ber
egi
ster
edwi
tht
heAut
hor
it
yonl
ywhen
accompani
edbyacer
ti
fi
cat
eofaut
hor
it
yissued
byt
heBSP,
underi
tsof
fi
cial
seal
.

"
ART.98.Admi
nist
rat
ionofCooper
ati
veBanks.–
Tomai
ntai
nthequal
i
tyofbankmanagementand
accor
dappr
opr
iat
epr
otect
iont
odeposi
tor
sand
t
hepubl
i
cingener
al,
theBSPshal
lpr
escr
ibedt
he
f
itandpr
operqual
i
ficat
ionsofbankdi
rect
orsand
of
fi
cer
sfort
hepur
posesoft
hisar
ti
cle,
giv
ingdue
r
ecogni
ti
ont
otheuni
quenat
ureandchar
act
erof
cooper
ati
vebanks.

"
Not
wit
hst
andi
ngt
hepr
ovi
sionsoft
hisCode,
the
number
,comput
ati
onandt
erm oft
heboar
dof
di
rect
orsshal
lbedef
inedi
nthear
ti
clesof
cooper
ati
onandby
lawsoft
hecooper
ati
vebank.

"
ART.99.Quor
um andVot
ingRi
ght
s.–The
quor
um r
equi
rementf
orgener
alassembl
y
meet
ings,
whet
herspeci
alorr
egul
ar,
shal
lbeone
hal
fpl
usoneoft
henumberofv
oti
ngshar
esofal
l
t
hemember
singoodst
andi
ng.I
nthemeet
ingsof
t
heboar
dofdi
rect
ors,
whet
herspeci
alorr
egul
ar,
t
hequor
um r
equi
rementshal
lbeone-
hal
fpl
usone
ofal
lthemember
soft
heboar
dofdi
rect
ors.Each
di
rect
orshal
lonl
yhav
eonev
ote.

"
Not
wit
hst
andi
ngt
hepr
ovi
sionsoft
hisCodet
o
t
hecont
rar
y,t
hequor
um r
equi
rementf
or
amendment
sofar
ti
clesofcooper
ati
onand
by
lawsshal
lbet
hree-
four
ths(
3/4)v
oteofal
lthe
member
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um.Al
lot
herv
oti
ng
r
equi
rement
sshal
lbeaspr
escr
ibedbyt
heBSP.

"
Thev
oti
ngr
ight
soft
hemember
sshal
lbe
pr
opor
ti
onat
etot
henumberoft
hei
rpai
d-up
shar
es.
"
ART.100.Power
s,Funct
ionsandAl
l
ied
Under
taki
ngsofCooper
ati
veBanks.–A
cooper
ati
vebankshal
lpr
imar
il
ypr
ovi
def
inanci
al,
banki
ngandcr
edi
tser
vicest
ocooper
ati
ve
or
gani
zat
ionsandt
hei
rmember
s.Howev
er,
the
BSPmaypr
escr
ibeappr
opr
iat
egui
del
i
nes,
cei
l
ingsandcondi
ti
onsonbor
rowi
ngofa
cooper
ati
veor
gani
zat
ionf
rom acooper
ati
vebank.

"
Thepower
sandf
unct
ionsofacooper
ati
vebank
shal
lbesubj
ectt
osuchr
ulesandr
egul
ati
onsas
maybepr
omul
gat
edbyt
heBSP.

"
Inaddi
ti
ont
othepower
sgr
ant
edbyt
hisCode
andot
herex
ist
ingl
aws,
anycooper
ati
vebankmay
per
for
m anyoral
loft
hebanki
ngser
vicesof
fer
ed
byot
hert
ypesofbankssubj
ectt
othepr
ior
appr
oval
oft
heBSP.

"
ART.101.Capi
tal
Requi
rement
sofCooper
ati
ve
Banks.–(
1)Acooper
ati
vebankshal
lhav
ea
mi
nimum pai
d-upcapi
tal
insuchamountasmay
ber
equi
redbyt
heBSP.

"
TheBSPmaypr
escr
iber
ulesandr
egul
ati
onson
t
het
ypesofshar
esacooper
ati
vebankmayi
ssue,
i
ncl
udi
ngt
het
ermst
her
eofandr
ight
sappur
tenant
t
her
etot
odet
ermi
necompl
i
ancewi
thl
awsand
r
egul
ati
onsgov
erni
ngcapi
tal
andequi
tyst
ruct
ure
ofbanks:
Prov
ided,
Thatcooper
ati
vebanksshal
l
i
ssueparv
alueshar
esonl
y.

"
(2)TheBar
ri
oSav
ingsFund(
BSF)andBar
ri
o
Guar
ant
eeFund(
BGF)col
l
ect
ed/
deduct
edby
v
ari
ousbankst
hroughoutt
hecount
ryf
rom t
he
l
oanpr
oceedsoff
armer
-bor
rower
swhower
e
member
sofcooper
ati
vesandSamahangNay
on
i
ncompl
i
ancewi
thPr
esi
dent
ial
Decr
eeNo.175
andaccompany
ingl
ett
ersofi
nst
ruct
ion,
whi
char
e
st
il
lfl
oat
ingandout
standi
ngei
therasact
iveor
dor
mantdeposi
taccount
sint
hebooksoft
hose
banks,
shal
lbedeposi
tedt
othecooper
ati
vebank
l
ocat
edi
nthepr
ovi
ncewher
ethedeposi
tor
y
banksofBSFandBGFar
elocat
ed,
ori
fther
eisno
cooper
ati
vebanki
nthepr
ovi
nce.TheBSP,
in
coor
dinat
ionwi
tht
heAut
hor
it
y,shal
lcomeup
wi
tht
hei
mpl
ement
inggui
del
i
nesonhowt
ocr
edi
t
t
heowner
soft
hef
unds.

"
Thosef
undswhoseowner
scoul
dnotbel
ocat
ed
ori
dent
if
iedshal
lbesubj
ectt
oescheat
.

"
ART.102.Pr
ivi
l
egesandI
ncent
ivesof
Cooper
ati
veBanks.–Thecooper
ati
vebanks
r
egi
ster
edundert
hisCodeshal
lbegi
vent
he
samepr
ivi
l
egesandi
ncent
ivesgr
ant
edt
other
ural
banks,
pri
vat
edev
elopmentbank,
commer
cial
banks,
andal
lot
herbankst
oredi
scountnot
es
wi
tht
heBSP,
theLandBankoft
hePhi
l
ippi
nes,
andot
hergov
ernmentbankswi
thoutaf
fect
ingi
n
anywayt
hepr
ovi
sionsoft
hisCode.

"
(1)Subj
ectt
otheappr
oval
oft
heBSP,
a
cooper
ati
vebankshal
lpubl
i
shast
atementofi
ts
f
inanci
alst
atementofi
tsf
inanci
alcondi
ti
on,
i
ncl
udi
ngt
hoseofi
tssubsi
diar
iesandaf
fi
li
atesi
n
sucht
ermsunder
standabl
etot
hel
aymanandi
n
suchf
requencyasmaybepr
escr
ibedbyt
heBSP,
i
nEngl
i
shorFi
l
ipi
no,
atl
eastonceev
eryquar
teri
n
anewspaperofl
ocal
cir
cul
ati
oni
ntheci
tyor
pr
ovi
ncewher
ethepr
inci
pal
off
icei
slocat
edor
,if
nonewspaperi
spubl
i
shedi
nthesamepr
ovi
nces,
t
heni
nanewspaperpubl
i
shedi
nthenear
estci
ty
orpr
ovi
nceori
nanewspaperofgener
al
ci
rcul
ati
on.TheBSP,
howev
er,
mayal
l
owt
he
post
ingoft
hef
inanci
alst
atement
soft
he
cooper
ati
vebanki
nconspi
cuouspl
acesi
tmay
det
ermi
nei
nli
euoft
hepubl
i
cat
ionr
equi
redi
nthe
pr
ecedi
ngsent
encewhenwar
rant
edbyt
he
ci
rcumst
ances.

"
Howev
er,
incasesoff
orecl
osur
eofmor
tgages
cov
eri
ngl
oansgr
ant
edbyacooper
ati
vebank,
and
t
heex
ecut
ionofj
udgment
sther
eoni
nvol
vi
ngr
eal
pr
oper
ti
esandl
evi
eduponbyasher
if
f,i
tshal
lbe
ex
emptf
rom publ
i
cat
ionr
equi
rementwher
ethe
t
otal
amountoft
hel
oan,
excl
udi
ngi
nter
estand
ot
herchar
gesdueandunpai
d,doesnotex
ceed
Twohundr
edf
if
tyt
housand(
P250,
000.
00)orsuch
amountast
heBSPmaypr
escr
ibe,
asmaybe
war
rant
edbyt
hepr
evai
l
ingeconomi
ccondi
ti
ons
andbyt
henat
ureandchar
act
eroft
hecooper
ati
ve
banks.I
tshal
lbesuf
fi
cientpubl
i
cat
ioni
nsuch
casesi
fthenot
iceoff
orecl
osur
eandex
ecut
ionof
j
udgmentar
epost
edi
nconspi
cuousar
easi
nthe
cooper
ati
vebank’
spr
emi
ses,
themuni
cipal
hal
l
,
t
hemuni
cipal
publ
i
cmar
ket
,thebar
angayhal
l
,or
t
hebar
angaypubl
i
cmar
ket
,ift
her
ebeanywher
e
t
hepr
oper
tymor
tgagedi
ssi
tuat
ed,
wit
hinaper
iod
ofsi
xty(
60)day
simmedi
atel
ypr
ecedi
ngt
he
publ
i
cauct
ionort
heex
ecut
ionofj
udgment
.Pr
oof
ofpubl
i
cat
ionasr
equi
redher
einshal
lbe
accompl
i
shedbyanaf
fi
dav
itoft
hesher
if
for
of
fi
cerconduct
ingt
hef
orecl
osur
esal
eor
ex
ecut
ionofj
udgment
,andshal
lbeat
tachedt
o
t
her
ecor
doft
hecase.

"
(2)Acooper
ati
vebankshal
lbeal
l
owedt
o
f
orecl
osur
elandsmor
tgagedt
oit
ssubj
ectt
othe
pr
ovi
sionsofRepubl
i
cActNo.6657,
other
wise
knownasCompr
ehensi
veAgr
ari
anRef
orm Lawof
1988.

"
ART.103.Assi
stancet
oCooper
ati
veBanks.–I
n
accor
dancewi
thex
ist
ingpol
i
cies,
gov
ernment
agenci
es,
gov
ernment
-ownedorcont
rol
l
ed
cor
por
ati
onsandf
inanci
ali
nst
it
uti
onsshal
l
pr
ovi
deassi
stance,
techni
cal
orot
her
wise,
to
cooper
ati
vebankst
oper
mitt
hem t
ogr
ow,
dev
elopandper
for
mthei
rrol
eincount
rysi
de
dev
elopmentt
owar
dsasust
ainabl
enat
ional
economi
cdev
elopment
.Whenev
eracooper
ati
ve
bankor
gani
zedundert
hisCodei
sinast
ateof
cont
inui
ngi
nabi
l
ityorunwi
l
li
ngnesst
omai
ntai
na
per
iodofl
i
qui
dit
y,t
heBSPmaydesi
gnat
eoneof
i
tsof
fi
cial
soraper
sonofr
ecogni
zedcompet
ence,
pr
efer
abl
ywi
thex
per
iencei
ncooper
ati
vebanki
ng
andf
inance,
asconser
vat
oroft
hesai
dbank
pur
suantt
otheappr
opr
iat
epr
ovi
sionsofex
ist
ing
banki
ngl
aws.

"
ART.104.Appl
i
cabi
l
ityofBanki
ngLawsand
Regul
ati
ons.–Wi
thr
espectt
othepr
ovi
sionsand
gov
ernanceoft
hecooper
ati
vebanks,
the
pr
ovi
sionsoft
hebanki
ngl
aws,
rul
esand
r
egul
ati
onsshal
lpr
evai
l
,not
wit
hst
andi
ngSect
ion
71ofRepubl
i
cActNo.8791,
other
wiseknownas
t
heGener
alBanki
ngActof2000.
"
TheBSPandt
heAut
hor
it
y,i
nconsul
tat
ionwi
th
t
heconcer
nedcooper
ati
vesect
or,
shal
li
ssue
appr
opr
iat
erul
esandr
egul
ati
onsper
tai
ningt
othe
pr
ovi
sionsoft
hisChapt
er.
"

SEC.13.Ar
ti
cles99,
100,
101,
102,
103,
104,
105,
106,
107,
108and109ofChapt
erXI
IIonSpeci
al
Pr
ovi
sionsRel
ati
ngt
oCooper
ati
veBanksoft
he
sameCodear
eher
ebyt
ransf
err
edt
oanot
her
chapt
er.Chapt
erXI
IIasamendedshal
lnowr
ead,
asf
oll
ows

CHAPTERXI
II
I
NSURANCECOOPERATI
VE

"
ART.105.Cooper
ati
veI
nsur
anceSoci
eti
es.–
Ex
ist
ingcooper
ati
vesmayor
gani
zet
hemsel
ves
i
ntoacooper
ati
vei
nsur
anceent
it
yfort
hepur
pose
ofengagi
ngi
nthebusi
nessofi
nsur
ingl
i
feand
pr
oper
tyofcooper
ati
vesandt
hei
rmember
s.
"
ART.106.Ty
pesofI
nsur
ancePr
ovi
ded.–Under
t
hecooper
ati
vei
nsur
ancepr
ogr
am est
abl
i
shed
andf
ormedbyt
hev
irt
ueoft
hepr
ovi
sionsoft
his
Code,
thecooper
ati
vei
nsur
ancesoci
eti
esshal
l
pr
ovi
dei
tsconst
it
uti
ngmember
sdi
ff
erentt
ypes
ofi
nsur
ancecov
erageconsi
sti
ngof
,butnot
l
i
mit
edt
o,l
i
fei
nsur
ancewi
thspeci
algr
oup
cov
erage,
loanpr
otect
ion,
ret
ir
ementpl
ans,
endowment
,mot
orv
ehi
clecov
erage,
bondi
ng,
cr
opandl
i
vest
ockpr
otect
ionandequi
pment
i
nsur
ance.

"
ART.107.Appl
i
cabi
l
ityofI
nsur
anceLaws.–The
pr
ovi
sionsoft
heI
nsur
anceCodeandal
lot
her
l
awsandr
egul
ati
onsr
elat
ivet
otheor
gani
zat
ion
andoper
ati
onofani
nsur
ancecompanyshal
l
appl
ytocooper
ati
vei
nsur
anceent
it
iesor
gani
zed
undert
hisCode.Ther
equi
rement
son
capi
tal
i
zat
ion,
inv
est
ment
sandr
eser
vesof
i
nsur
ancef
ir
msmaybel
i
ber
all
ymodi
fi
edupon
consul
tat
ionwi
tht
heAut
hor
it
yandt
he
cooper
ati
vesect
or,
buti
nnocasemaybe
r
equi
rementt
ober
educedt
olesst
hanhal
fof
t
hosepr
ovi
dedf
orundert
heI
nsur
anceCodeand
ot
herr
elat
edl
aws.

"
ART.108.I
mpl
ement
ingRul
es.–TheI
nsur
ance
Commi
ssi
onandt
heAut
hor
it
y,i
nconsul
tat
ion
wi
tht
heconcer
nedcooper
ati
vesect
or,
shal
li
ssue
t
heappr
opr
iat
erul
esandr
egul
ati
ons
i
mpl
ement
ingt
hepr
ovi
sionsoft
hisChapt
er.
"

SEC.14.Ar
ti
cles110,
111,
112,
113and114of
Chapt
erXI
VonSpeci
alPr
ovi
sionsr
elat
ingt
o
Cr
edi
tCooper
ati
veoft
hisCodear
eher
eby
t
ransf
err
edt
oanot
herchapt
er.Chapt
erXI
Vas
amendedshal
lnowr
ead,
asf
oll
ows:

CHAPTERXI
V
PUBLI
CSERVI
CECOOPERATI
VES

"
ART.109.Def
ini
ti
onandCov
erage.–Apubl
i
c
ser
vicecooper
ati
ve,
wit
hint
hemeani
ngoft
his
Code,
isoneor
gani
zedt
orenderpubl
i
cser
vices
asaut
hor
izedunderaf
ranchi
seorcer
ti
fi
cat
eof
publ
i
cconv
eni
enceandnecessi
tydul
yissuedby
t
heappr
opr
iat
egov
ernmentagency
.Such
ser
vicesmayi
ncl
udet
hef
oll
owi
ng:

"
(1)Powergener
ati
on,
transmi
ssi
on,
and/
or
di
str
ibut
ion;

"
(2)I
cepl
ant
sandcol
dst
orageser
vices;

"
(3)Communi
cat
ionser
vicesi
ncl
udi
ngt
elephone,
t
elegr
aph,
andcommuni
cat
ions:

"
(4)Landandseat
ranspor
tat
ioncooper
ati
vesf
or
passengerand/
orcar
go.Tr
anspor
tcooper
ati
ves
or
gani
zedundert
hepr
ovi
sionsofEx
ecut
iveOr
der
No.898,
Ser
iesof1983,
shal
lbegov
ernedbyt
his
Chapt
er.

"
(5)Publ
i
cmar
ket
s,sl
aught
erhousesandot
her
si
mil
arser
vices;
and

"
(6)Suchot
hert
ypesofpubl
i
cser
vicesasmaybe
engagedi
nbyanycooper
ati
ve.Suchcooper
ati
ve
shal
lbepr
imar
il
ygov
ernedbyt
hisChapt
erand
t
hegener
alpr
ovi
sionsoft
hisCodei
nsof
arast
hey
maybeappl
i
cabl
eunl
esst
heyar
einconsi
stent
her
ewi
th.

"
ART.110.Regi
str
ati
onRequi
rement
s.–Unl
ess
ot
her
wisepr
ovi
dedi
nthi
sCode,
nopubl
i
cser
vice
cooper
ati
veshal
lber
egi
ster
edunl
essi
tsat
isf
ies
t
hef
oll
owi
ngr
equi
rement
s.

"
(1)I
tsar
ti
clesofcooper
ati
onandby
lawspr
ovi
de
f
ort
hemember
shi
poft
heuser
sand/
orpr
oducer
s
oft
heser
viceofsuchcooper
ati
ves;
and

"
(2)Suchot
herr
equi
rement
sasmaybei
mposed
byt
heot
herper
ti
nentgov
ernmentagenci
es
concer
ned.I
ncaset
her
ear
etwo(
2)ormor
e
appl
i
cant
sfort
hesamepubl
i
cser
vicef
ranchi
se
orcer
ti
fi
cat
eofpubl
i
cconv
eni
enceandnecessi
ty,
al
lthi
ngsbei
ngequal
,pr
efer
enceshal
lbegi
vent
o
apubl
i
cser
vicecooper
ati
ve.
"
ART.111.Regul
ati
onofPubl
i
cSer
vice
Cooper
ati
ves.–(
1)Thei
nter
nal
aff
air
sofpubl
i
c
ser
vicecooper
ati
vessuchast
her
ight
sand
pr
ivi
l
egesofmember
s,t
her
ulesandpr
ocedur
es
f
ormeet
ingsoft
hegener
alassembl
y,boar
dof
di
rect
orsandcommi
tt
ees;
fort
heel
ect
ionand
qual
i
ficat
ionsofof
fi
cer
s,di
rect
ors,
and
commi
tt
eemember
s;al
l
ocat
ionanddi
str
ibut
ion
ofsur
pluses;
andal
lot
hermat
ter
srel
ati
ngt
othei
r
i
nter
nal
aff
air
sshal
lbegov
ernedbyt
hisCode.

"
(2)Al
lmat
ter
srel
ati
ngt
othef
ranchi
seor
cer
ti
fi
cat
eofpubl
i
cconv
eni
enceandnecessi
tyof
publ
i
cser
vicecooper
ati
vessuchascapi
tal
i
zat
ion
andi
nvest
mentr
equi
rement
s,equi
pmentand
f
aci
l
iti
es,
frequenci
es,
rat
e-f
ixi
ngandsuchot
her
mat
ter
saf
fect
ingt
hei
rpubl
i
cser
viceoper
ati
ons
shal
lbegov
ernedbyt
hepr
opergov
ernment
agencyconcer
ned.

"
(3)TheAut
hor
it
yandt
hepr
opergov
ernment
agencyconcer
nedshal
lj
oint
lyi
ssuet
he
necessar
yrul
esandr
egul
ati
onst
oimpl
ementt
his
Chapt
er.

"
(4)TheAut
hor
it
yshal
lest
abl
i
shacommi
tt
eef
or
t
hemoni
tor
ingoft
ranspor
tat
ionser
vice
cooper
ati
vescomposedofr
epr
esent
ati
vesf
rom
t
heAut
hor
it
y,t
heLandTr
anspor
tat
ionFr
anchi
sing
andRegul
ator
yBoar
d(LTFRB)
,theLand
Tr
anspor
tat
ionOf
fi
ce(
LTO)
,Of
fi
ceofTr
anspor
t
Cooper
ati
ves(
OTC)
,ot
herconcer
nedgov
ernment
agenci
es,
asmaybenecessar
y,andt
heNat
ional
Feder
ati
onofTr
anspor
tat
ionCooper
ati
ves.A
l
ocal
moni
tor
ingcommi
tt
eeshal
ll
ikewi
sebe
est
abl
i
shedatt
heex
tensi
onof
fi
cesoft
he
Aut
hor
it
ytof
aci
l
itat
ethemoni
tor
ingof
t
ranspor
tat
ioncooper
ati
ves.

"
ART.112.Engagementi
nAl
l
iedBusi
nessby
Tr
anspor
tat
ionSer
viceCooper
ati
ves.–Subj
ectt
o
per
ti
nentnat
ional
lawsandl
ocal
ordi
nances,
pr
imar
ytr
anspor
tat
ionser
vicecooper
ati
ves
i
ncl
udi
ngsecondar
yandt
ert
iar
yfeder
ati
onof
cooper
ati
vesmayengagei
nabusi
nessr
elat
edt
o
t
ranspor
tat
ionser
vice,
incl
udi
ngbutnotl
i
mit
edt
o:

"
(1)I
mpor
tat
ion,
dist
ri
but
ionand,
mar
ket
ingof
pet
rol
eum pr
oduct
sinaccor
dancewi
thex
ist
ing
l
aws;

"
(2)Oper
ati
onofgasol
i
nest
ati
onsand
t
ranspor
tat
ionser
vicecent
ers;

"
(3)I
mpor
tat
ion,
dist
ri
but
ionandmar
ket
ingof
spar
epar
tsandsuppl
i
es;
and

"
(4)Mar
ket
ingofv
ehi
cle/
dri
ver
sinsur
ancepol
i
cies.

"
ART.113.Renewal
ofFr
anchi
seandVehi
cle
Regi
str
ati
on.–Renewal
soff
ranchi
seandv
ehi
cle
r
egi
str
ati
onshal
lbegr
ant
edt
otr
anspor
tat
ion
ser
vicecooper
ati
ves:
Prov
ided,
Thatsuch
cooper
ati
vepr
esent
sacer
ti
fi
cat
eofgood
st
andi
ngi
ssuedbyt
heAut
hor
it
y,OTC,
andt
he
l
ocal
gov
ernmentuni
tconcer
nedaspr
ooft
hati
t
hascont
inuousl
ypr
ovi
dedt
her
equi
redpubl
i
c
t
ranspor
tat
ionser
vices.

"
TheAut
hor
it
y,i
nconsul
tat
ionwi
tht
heconcer
ned
gov
ernmentagenci
esandcooper
ati
vesect
or,
shal
li
ssueappr
opr
iat
erul
esandr
egul
ati
ons
per
tai
ningt
othepr
ovi
sionsoft
hisChapt
er.
"

SEC.15.Ar
ti
cles115,
116,
117and118ofChapt
er
XVonSpeci
alPr
ovi
sionsr
elat
ingt
oCooper
ati
ve
I
nsur
anceSoci
eti
esoft
hesameCodear
eher
eby
t
ransf
err
edt
oanot
herchapt
er.Chapt
erXVas
amendedshal
lnowr
ead,
asf
oll
ows:

CHAPTERXV
CREDI
TCOOPERATI
VES

"
ART.114.Cov
erage.–Thi
sChapt
ershal
lappl
yto
cr
edi
tcooper
ati
vesandot
hercooper
ati
ves,
i
ncl
udi
ngmul
ti
pur
posecooper
ati
ves,
thatpr
ovi
de
sav
ingsandcr
edi
ttot
hei
rmember
sonl
y.Ther
est
oft
hepr
ovi
sionsoft
hisCodeshal
lappl
ytot
hem
i
nsof
arast
hesamear
enoti
nconsi
stentwi
tht
he
pr
ovi
sionsoft
hisChapt
er.

"
ART.115.Def
ini
ti
onandObj
ect
ives.–Acr
edi
t
cooper
ati
vei
saf
inanci
alor
gani
zat
ionownedand
oper
atedbyi
tsmember
swi
tht
hef
oll
owi
ng
obj
ect
ives:

"
(1)Toencour
agesav
ingsamongi
tsmember
s;

"
(2)Tocr
eat
eapool
ofsuchsav
ingsf
orwhi
ch
l
oansf
orpr
oduct
iveorpr
ovi
dentpur
posemaybe
gr
ant
edt
oit
smember
s;and

"
(3)Topr
ovi
der
elat
edser
vicest
oenabl
eit
s
member
stomax
imi
zet
hebenef
itf
rom suchl
oans.

"
ART.116.Or
gani
zat
ionandRegi
str
ati
on.
-Cr
edi
t
cooper
ati
vesshal
lbeor
gani
zedandr
egi
ster
edi
n
accor
dancewi
tht
hegener
alpr
ovi
sionsoft
his
Code.
"
ART.117.Or
gani
zat
ional
Linkage.–Cr
edi
t
cooper
ati
vesmayor
gani
zechapt
ersor
subsi
diar
ies,
orj
oinl
eaguesandf
eder
ati
onsf
or
t
hepur
poseofpr
ovi
dingcommonl
yneeded
essent
ial
ser
vicesi
ncl
udi
ngbutnotl
i
mit
edt
othe
f
oll
owi
ng:

"
(1)I
nter
lendi
ngofsur
plusf
und;
"(
2)Mut
ual
benef
it
s;"
(3)Deposi
tguar
ant
ee;
"(
4)Bondi
ng;
"(
5)
Educat
ionandt
rai
ning;
"(
6)Pr
ofessi
onal
and
t
echni
cal
assi
stance;
"(
7)Resear
chand
dev
elopment
;"
(8)Repr
esent
ati
on;
and"
(9)Ot
her
ser
vicesneededt
oimpr
ovet
hei
rper
for
mance.

"
Exi
sti
ngsuppor
tor
gani
zat
ionssuchas
f
eder
ati
onsofcr
edi
tcooper
ati
ves,
credi
t
cooper
ati
vesatt
hepr
ovi
nci
al,
regi
onal
and
nat
ional
lev
elsmaycont
inueassuchundert
his
Code.
"

SEC.16.AnewAr
ti
clei
sinser
tedi
nChapt
erXVon
Cr
edi
tCooper
ati
vesandshal
lnowr
ead,
asf
oll
ows:

"
ART.118.Conv
ersi
onofCr
edi
tCooper
ati
vest
o
Fi
nanci
alSer
viceCooper
ati
ves.–Ex
ist
ingcr
edi
t
andmul
ti
pur
posecooper
ati
veswi
thsav
ingsand
cr
edi
tfaci
l
iti
esshal
lfor
mal
l
yinf
ormt
heAut
hor
it
y
ofi
tsi
ntent
iont
ocont
inueper
for
mingi
tspr
esent
f
unct
ions.Shoul
dthesai
dcooper
ati
vesdeci
det
o
ex
erci
seenhancedf
unct
ions,
itshal
lnot
if
ythe
Aut
hor
it
yandsat
isf
yther
equi
rement
sfor
conv
ersi
ont
ofi
nanci
alser
vicecooper
ati
ve.
"

SEC.17.AnewChapt
eronFi
nanci
alSer
vice
Cooper
ati
vesshal
lbei
nser
tedi
nthi
sChapt
erand
shal
lread,
asf
oll
ows:

CHAPTERXVI
FI
NANCI
ALSERVI
CECOOPERATI
VES

"
ART.119.Def
ini
ti
onandFunct
ionsofFi
nanci
al
Ser
vicesCooper
ati
ves.–Af
inanci
alser
vice
cooper
ati
vei
saf
inanci
alor
gani
zat
ionownedand
oper
atedbyi
tsmember
sandaut
hor
izedt
o
pr
ovi
det
hef
oll
owi
ngser
vice,
excl
usi
vel
ytoi
ts
member
s:

"
(a)Thef
unct
ionsofcr
edi
tcooper
ati
vesandot
her
cooper
ati
ves,
incl
udi
ngmul
ti
pur
posecooper
ati
ves,
t
hatpr
ovi
desav
ingsandcr
edi
ttot
hei
rmember
s,
and"
(b)Ot
herf
inanci
alser
vicessubj
ectt
o
r
egul
ati
onbyt
heBSP.

"
Thear
ti
clesofcooper
ati
onandby
lawsofany
f
inanci
alser
vicecooper
ati
ve,
oranyamendment
t
her
eto,
shal
lber
egi
ster
edwi
tht
heAut
hor
it
yonl
y
i
faccompani
edbyacer
ti
fi
cat
eofaut
hor
it
yissued
byt
heBSP,
underi
tsof
fi
cial
seal
.

"
Theaut
hor
it
ygr
ant
edt
hispr
ovi
sionmaybe
r
evokedbyt
heBSPi
fanyoft
hegr
oundsf
or
r
ecei
ver
shi
pment
ionedunderSect
ion53and56
ofRepubl
i
cActNo.8791i
spr
esentori
fthe
f
inanci
alser
vicecooper
ati
vehaswi
l
lful
l
yvi
olat
ed
t
hisCodeofanyoft
her
elat
edr
ulesand
r
egul
ati
ons.
"
TheBSPshal
li
ssueaceaseanddesi
stor
dert
o
cooper
ati
vesex
erci
singt
hef
unct
ionofaf
inanci
al
ser
vicecooper
ati
vewi
thoutaut
hor
it
yfr
om t
he
BSP.

"
TheBSPmaychar
geequi
tabl
erat
esorf
ees,
as
maybepr
escr
ibedbyt
heMonet
aryBoar
dfor
l
i
censi
ng,
exami
nat
ionandot
herser
viceswhi
chi
t
r
ender
sundert
hisCode.

"
Upont
hef
avor
abl
ecer
ti
fi
cat
ionoft
heBSPand
t
hepr
iorappr
oval
oft
heAut
hor
it
y,acooper
ati
ve,
t
hemai
npur
poseofwhi
chi
stoper
for
m sav
ings
andcr
edi
tfunct
ions,
mayconv
ertt
ofi
nanci
al
ser
vicecooper
ati
vesubj
ectt
other
equi
red
qual
i
ficat
ionsandpr
ocedur
espr
ovi
dedundert
his
Codeandi
nthei
mpl
ement
ingr
ulesand
r
egul
ati
ons.

"
ART.120.Member
shi
pandAf
fi
li
ati
on.–A
f
inanci
alser
vicecooper
ati
veshal
lhav
ethet
wo(
2)
t
ypesofmember
s:

"
(1)Regul
armember
s,whoar
enat
ural
per
sons;
and

"
(2)Associ
atemember
s,whoar
enat
ural
per
sons
butwhodonoti
mmedi
atel
yqual
i
fyundert
he
r
equi
rement
sformember
shi
psetouti
nthe
by
lawsoft
hecooper
ati
ve.Al
lassoci
atemember
s
whoar
enat
ural
per
sonsshal
lbegi
vent
wo(
2)
y
ear
stobecomer
egul
armember
s.Fai
l
uret
o
conv
ertwi
thi
nthesai
dper
iodshal
lmean
aut
omat
icwi
thdr
awal
oft
hei
rassoci
ate
member
shi
p.Theymay
,howev
er,
re-
appl
yas
r
egul
armember
saf
tert
wo(
2)y
ear
s.

"
Minor
swhoar
edependent
sofr
egul
armember
s
canqual
i
fyasassoci
atemember
s.Whent
hey
r
eacht
heageofmaj
ori
tyandwi
thi
ntwo(
2)y
ear
s
f
rom accept
ancesoft
hei
rassoci
atemember
shi
p,
t
heyhav
etheopt
iont
oconv
erti
ntor
egul
ar
member
s.Asassoci
atemember
s,t
heymayopen
account
s,deposi
tfundsandwi
thdr
awf
rom t
hei
r
account
,subj
ectt
otheby
lawsandr
ulesoft
he
cooper
ati
ve,
andt
her
ulesandr
egul
ati
onsoft
he
Aut
hor
it
y,not
wit
hst
andi
ngt
hepr
ovi
sionsof
ex
ist
ingl
awst
othecont
rar
y.

"
ART.121.Regul
ati
onandSuper
visi
on.–The
Aut
hor
it
yshal
lex
erci
sel
eadr
egul
ator
ypower
s
andsuper
visi
onov
ert
heoper
ati
onsoft
he
f
inanci
alser
vicecooper
ati
ves,
towi
t:

"
(1)I
ssuer
ulesandr
egul
ati
onsf
ort
hesaf
eand
soundconductofoper
ati
onsoff
inanci
alser
vice
cooper
ati
ves;

"
(2)Est
abl
i
shst
andar
dsofoper
ati
onf
oruni
for
m
appl
i
cat
iont
oal
lfi
nanci
alser
vicecooper
ati
ves;

"
(3)Pr
escr
iber
ati
os,
cei
l
ings,
li
mit
ati
ons,
orot
her
f
ormsofr
egul
ati
onont
hedi
ff
erentt
ypesof
account
sandpr
act
icesoff
inanci
alser
vice
cooper
ati
veswhi
chshal
l
,conf
ormt
o
i
nter
nat
ional
l
yaccept
edst
andar
ds;
"
(4)I
nvest
igat
etodet
ermi
newhet
heraf
inanci
al
ser
vicecooper
ati
vei
sconduct
ingi
tsbusi
nessi
na
saf
eandsoundmanner
;

"
(5)Conductr
egul
arex
ami
nat
ionoft
hebooksof
account
s,r
ecor
dsandot
herdocument
sof
f
inanci
alser
vicecooper
ati
ves;

"
(6)I
nqui
rei
ntot
hesol
vencyandl
i
qui
dit
yofa
f
inanci
alser
vicecooper
ati
ves;

"
(7)Pr
escr
ibeappr
opr
iat
efeesf
orsuper
visi
onand
ex
ami
nat
ionoff
inanci
alser
vicecooper
ati
vest
o
amongot
her
s,moni
torandov
erseet
hatex
ist
ing
l
awsandr
egul
ati
onsar
ecompl
i
edwi
th;

"
(8)Passuponandr
evi
ewt
hequal
i
ficat
ionsand
di
squal
i
ficat
ionsofi
ndi
vi
dual
sel
ect
edor
appoi
nteddi
rect
orsorof
fi
cer
sanddi
squal
i
fy
t
hosef
oundunf
it
;
"
(9)Di
squal
i
fy,
suspendorr
emov
eanydi
rect
oror
of
fi
cerwhocommi
tsoromi
tsanactwhi
chr
ender
hi
m unf
itf
ort
heposi
ti
on;

"
(10)Sel
ect
,desi
gnat
eanddeput
izef
eder
ati
ons,
t
hroughanappr
ovedaccr
edi
tat
ioncr
it
eri
a,t
hat
wi
l
lsuper
visepr
imar
yfi
nanci
alser
vice
cooper
ati
vesandi
ssuebasi
cgui
del
i
nest
her
efor
;

"
(11)Requi
ret
hesubmi
ssi
onofr
elev
antr
epor
ts
f
rom t
hedeput
izedsuper
visor
;

"
(12)Pr
ovi
der
emedi
almeasur
esi
ntheoper
ati
ons
off
inanci
alser
vicecooper
ati
vest
hatar
einast
ate
ofcont
inui
ngi
nabi
l
ityorunwi
l
li
ngnesst
omai
ntai
n
aper
iodofl
i
qui
dit
yatt
her
equestoft
hedeput
ized
super
visororwhent
hedeput
izedsuper
visorf
ail
s
t
oper
for
mit
sfunct
ions;

"
(13)Accr
edi
tex
ter
nal
audi
tor
sinaccor
dancewi
th
st
andar
dsf
oraudi
tandf
inanci
alr
epor
ti
ngi
n
cooper
ati
onwi
tht
hePI
CPA;
and

"
(14)Appoi
ntaconser
vat
ororar
ecei
verasmay
benecessar
ysubj
ectt
other
ulesandr
egul
ati
ons
t
obepr
omul
gat
edbyt
heAut
hor
it
yincoor
dinat
ion
wi
tht
heBSP,
taki
ngi
ntoconsi
der
ati
ont
he
gr
ounds,
power
sandpr
ocedur
esunderSect
ions
29and30ofRepubl
i
cActNo.7653asmaybe
deemedappr
opr
iat
etof
inanci
alser
vice
cooper
ati
ves.

"
TheAut
hor
it
yshal
li
ncl
udei
nit
srul
esand
r
egul
ati
ons,
appr
opr
iat
esanct
ionsandpenal
ti
es,
ont
hef
inanci
alser
vicecooper
ati
ves,
itsmember
s,
of
fi
cer
sandr
esponsi
bleper
sons,
foranyact
ion
t
hatf
ail
stoadher
etosoundandpr
udent
managementpr
act
icesorar
einconsi
stentwi
th
t
hepr
ovi
sionsoft
hisCode,
otherappl
i
cabl
elaws
oncooper
ati
ves,
rul
es,
regul
ati
ons,
cir
cul
arsor
or
der
sissuedbyt
heAut
hor
it
y,andr
equi
ret
he
cooper
ati
vet
ounder
takecor
rect
iveorr
emedi
al
measur
esr
elat
ivet
her
eto.
"
TheBSPi
saut
hor
izedt
oconductr
isk-
based
super
visi
onandex
ami
nat
ionoff
inanci
alser
vice
cooper
ati
vesasi
tmaydeem necessar
y.

"
ART.122.Pr
omul
gat
ionofRul
esandRegul
ati
ons.
–TheBSP,
incoor
dinat
ionwi
tht
heAut
hor
it
y,shal
l
pr
escr
ibet
heappr
opr
iat
epr
udent
ial
rul
esand
r
egul
ati
onsappl
i
cabl
etot
hef
inanci
alser
vice
cooper
ati
ves.

"
Subj
ectt
other
egul
ati
onsoft
heBSP,
thebanki
ng
l
aws,
rul
esandr
egul
ati
onsshal
lhav
esuppl
etor
y
appl
i
cat
iont
ofi
nanci
alser
vicescooper
ati
ves:
Pr
ovi
ded,
howev
er,
Thatt
hepr
ovi
sionsonaccess
t
obor
rowi
ngorf
inanci
alassi
stancet
obe
ex
tendedbyt
heBSPoft
hePhi
l
ippi
neDeposi
t
I
nsur
anceCor
por
ati
on(
PIDC)shal
lnotappl
yto
f
inanci
alser
vicecooper
ati
ves:
Prov
ided,
fur
ther
,
Thatt
hedeposi
tli
abi
l
iti
esoft
hef
inanci
alser
vice
cooper
ati
vesshal
lnotbei
nsur
edbyt
hePDI
C.

"
ART.123.Fi
nanci
alSer
viceCooper
ati
ve
Feder
ati
ons.–Fi
nanci
alser
vicecooper
ati
vesmay
or
gani
zet
hemsel
vesi
ntof
inanci
alser
vice
cooper
ati
vemayor
gani
zet
hemsel
vesi
nto
f
inanci
alser
vicecooper
ati
vef
eder
ati
ons,
and
r
egi
stert
hei
rfeder
ati
onwi
tht
heAut
hor
it
y.These
f
inanci
alser
vicecooper
ati
vef
eder
ati
onsmaybe
deput
izedbyt
heAut
hor
it
yast
hesuper
visorof
t
hei
rmember
s,andt
heyshal
lhav
ethef
oll
owi
ng
f
unct
ions:

"
(a)Dev
elopst
andar
dsandpr
ovi
deser
vicesf
or
t
hebenef
itofi
tsaf
fi
li
atesandt
hei
rmember
sin
accor
dancewi
tht
her
ulesandr
egul
ati
onsoft
he
Aut
hor
it
y;

"
(b)Def
inecommonobj
ect
ivesandcoor
dinat
e
act
ivi
ti
esf
ort
hef
inanci
alser
vicecooper
ati
ve
f
eder
ati
on;

"
(c)Est
abl
i
shandadmi
nist
erf
undssuchas
l
i
qui
dit
yfund,
loanf
und,
inv
est
mentf
und,
st
abi
l
izat
ionf
undandsuchot
herf
unds;
"
(d)Est
abl
i
shasav
ingsguar
ant
eesy
stem f
ort
he
pr
otect
ionoft
hei
raf
fi
li
ates'
member
-deposi
tor
s
wi
thi
nthr
ee(
3)y
ear
sfr
om t
heappr
oval
oft
his
Code;

"
(e)Ex
erci
seon-
sit
eandof
f-
sit
esuper
visor
ypower
ov
eri
tsmember
s;

"
(f)Pr
ovi
der
emedi
alassi
stancet
oit
smember
s
concer
ningt
hei
roper
ati
onsandmanagement
;

"
(g)Actast
hel
i
qui
dat
orandwhenappl
i
cabl
e,
sequest
erpr
oper
ti
est
osat
isf
yanobl
i
gat
ion
secur
edbyamor
tgagewhenaut
hor
izedbyt
he
Aut
hor
it
y;and

"
(h)Tr
ansmi
trel
evantandr
equi
redi
nfor
mat
ion
r
egar
dingt
heoper
ati
onsandper
for
manceof
member
-cooper
ati
vest
otheAut
hor
it
y.

"
TheAut
hor
it
yandot
hergov
ernmentagenci
es,
gov
ernment
-ownedorcont
rol
l
edcor
por
ati
onsand
gov
ernmentf
inanci
ali
nst
it
uti
onsshal
lpr
ovi
de
t
echni
cal
andsuchot
herassi
stancet
hatmaybe
al
l
owedbyt
hei
rchar
ter
stof
inanci
alser
vice
cooper
ati
vef
eder
ati
onsf
ort
heest
abl
i
shment
and/
orst
rengt
heni
ngoft
hei
rrespect
ive
cooper
ati
vesav
ingsguar
ant
eesy
stem.The
t
echni
cal
assi
stancet
obepr
ovi
dedshal
li
ncl
ude,
amongot
her
s,t
rai
ningsuper
visi
onand
ex
ami
nat
ion.

"
ART.124.Desi
gnat
ionofEx
ist
ingUni
tatt
he
Cooper
ati
veDev
elopmentAut
hor
it
ytoPer
for
m
Regul
ator
yandSuper
visor
yFunct
ions.–Wi
thi
n
si
x(6)mont
hsf
rom t
heappr
oval
oft
hisCode,
the
Aut
hor
it
yshal
ldesi
gnat
etheuni
ttof
ormul
ateand
i
mpl
ementt
henecessar
yregul
ati
ons,
rul
es,
pol
i
cies,
gui
del
i
nesandst
andar
dsappl
i
cabl
e
sol
elyt
ofi
nanci
alser
vicecooper
ati
vesand
deput
izedf
eder
ati
onsi
ntheper
for
manceoft
hei
r
sav
ings,
credi
tandsuchot
herr
elat
edenhanced
f
inanci
alser
viceoper
ati
ons.
"
TheDepar
tmentofFi
nance,
theBSPandot
her
concer
nedgov
ernmentagenci
esshal
lpr
ovi
de
t
echni
cal
andt
rai
ningsuppor
tfort
heef
fect
ive
andef
fi
cienti
mpl
ement
ati
onoft
her
egul
ator
yand
super
visor
yfunct
ionsandr
esponsi
bil
i
tiesoft
he
Aut
hor
it
y.

"
ART.125.Pr
ohi
bit
ion.–Thet
ermscr
edi
t
cooper
ati
ve,
financi
alser
vicecooper
ati
veand
f
inanci
alser
vicecooper
ati
vef
eder
ati
onshal
lbe
usedex
clusi
vel
ybyt
hosewhoar
edul
yregi
ster
ed
undert
hisCode,
andnoper
son,
groupofper
sons,
oror
gani
zat
ionsshal
luset
hesai
dter
msunl
ess
dul
yregi
ster
edwi
tht
heAut
hor
it
y.Vi
olat
ionsof
t
hispr
ohi
bit
ionshal
lbepuni
shabl
einaccor
dance
wi
thAr
ti
cle140oft
hisCode.
"

SEC.18.AnewChapt
eronEl
ect
ri
cCooper
ati
ves
shal
lbei
nser
tedandshal
lread,
asf
oll
ows:

CHAPTERXVI
I
ELECTRI
CCOOPERATI
VE
"
ART.126.Cov
erage.–Thepr
ovi
sionsoft
his
Codeshal
lappl
ytoal
lel
ect
ri
ccooper
ati
ves
r
egi
ster
edwi
tht
heAut
hor
it
y.Thi
sshal
lal
socov
er
newdi
str
ibut
ionut
il
it
iest
hatwi
l
lregi
sterwi
tht
he
Aut
hor
it
y.

"
Elect
ri
ccooper
ati
vesmayunder
takepower
gener
ati
onut
il
iz
ingr
enewabl
eener
gysour
ces,
i
ncl
udi
nghy
bri
dsy
stems,
acqui
sit
ionand
oper
ati
onofsubt
ransmi
ssi
onordi
str
ibut
ionasi
ts
pr
imar
ypur
poses.

"
ART.127.Regi
str
ati
onofEl
ect
ri
cCooper
ati
ves.–
Ther
egi
str
ati
onofanel
ect
ri
ccooper
ati
vewi
tht
he
Aut
hor
it
yundert
hisCodeshal
lbesubmi
tt
edf
or
appr
oval
tot
hemember
sthr
oughar
efer
endum,
cal
l
edf
ort
hepur
poseaspr
ovi
dedf
orunder
Ar
ti
cles183and129oft
hisCode.

"
ART.128.Vot
ingRequi
rementf
orRegi
str
ati
on.–
I
ncompl
i
ancewi
tht
her
efer
endum asav
oti
ng
pr
ocedur
e,t
her
equi
rednumberofv
otesf
or
r
egi
str
ati
onwi
tht
heAut
hor
it
yshal
lbet
went
y
per
cent(
20%)ofal
lmember
singoodst
andi
ng.

"
ART.129.Document
stobeSubmi
tt
edf
or
Regi
str
ati
onwi
tht
heAut
hor
it
y.–Forpur
posesof
r
egi
str
ati
on,
elect
ri
ccooper
ati
vesshal
lsubmi
tthe
f
oll
owi
ngdocument
s:

"
(a)Copyoft
heboar
dresol
uti
oncer
ti
fyi
ngt
othe
r
esul
toft
hev
oteappr
ovedt
hroughar
efer
endum
appr
ovi
ngt
her
egi
str
ati
onoft
hecooper
ati
vewi
th
t
heAut
hor
it
yincompl
i
ancewi
thAr
ti
cle128;

"
(b)Cer
ti
fi
edcopyoft
hear
ti
clesof
i
ncor
por
ati
on/
cooper
ati
onandby
lawsasr
equi
red
byt
heAut
hor
it
y;

"
(c)Dul
yaudi
tedf
inanci
alst
atement
sfort
hepast
t
wo(
2)y
ear
s;
"
(d)Li
stofnamesofi
ncumbentboar
dofdi
rect
ors
andt
hei
raddr
essescer
ti
fi
edbyt
heboar
d
secr
etar
yandat
test
edbyt
hechai
rper
son;

"
(e)Wi
thi
nsi
x(6)mont
hsf
rom t
her
egi
str
ati
on,
the
t
reasur
ershal
lsubmi
taswor
nst
atementoft
he
aut
hor
izedshar
ecapi
tal
,thesubscr
ibedshar
e
capi
tal
ofmember
sandt
heamountofpai
d-up
shar
ecapi
tal
recei
vedbyt
het
reasur
er;
and

"
(f)Bondsofaccount
abl
eof
fi
cer
s.

"
ART.130.Regi
str
ati
onOpt
ionsofEl
ect
ri
c
Cooper
ati
ves.–El
ect
ri
cCooper
ati
vesr
egi
ster
ed
wi
tht
heNat
ional
Elect
ri
fi
cat
ionAdmi
nist
rat
ion
(
NEA)underPr
esi
dent
ial
Decr
eeNo.269,
as
amendedwhi
choptnott
oregi
sterwi
tht
he
Aut
hor
it
yar
eal
l
owedt
oret
aint
hewor
d
‘
cooper
ati
ve’
int
hei
rregi
ster
ednames:
Prov
ided,
Thatt
heyshal
lnotbeent
it
ledt
othebenef
it
sand
pr
ivi
l
egesundert
hisCode.
"
ART.131.Rol
eoft
heEner
gyRegul
ator
y
Commi
ssi
on.–Al
lrat
esandt
ari
ff
sofel
ect
ri
c
cooper
ati
vesr
egi
ster
edundert
heAut
hor
it
yshal
l
besubj
ectt
other
ulesonappl
i
cat
ionandappr
oval
ofandbyt
heEner
gyRegul
ator
yCommi
ssi
onf
or
di
str
ibut
ionut
il
it
ies.

"
ART.132.Ef
fect
sofRegi
str
ati
onwi
tht
he
Aut
hor
it
y.–(
1)Upont
heef
fect
ivi
tyoft
hisCode,
el
ect
ri
ccooper
ati
vest
hatar
edul
yregi
ster
edwi
th
t
heAut
hor
it
y,andi
ssuedacer
ti
fi
cat
eof
r
egi
str
ati
on,
shal
lnol
ongerbecov
eredby
Pr
esi
dent
ial
Decr
eeNo.269,
asamendedby
Pr
esi
dent
ial
Decr
eeNo.1645:
Prov
ided,
That
el
ect
ri
ccooper
ati
vesr
egi
ster
edwi
tht
heAut
hor
it
y
shal
lnowbecov
eredbyt
hepr
ovi
sionsoft
his
Codeaswel
lasf
utur
erul
esandi
ssuancesoft
he
Aut
hor
it
y:Pr
ovi
ded,
howev
er,
Thatt
hesecur
it
yof
t
enur
eandt
hecol
l
ect
ivebar
gai
ningagr
eement
bet
weent
hecooper
ati
vemanagementandt
he
empl
oyeesshal
lber
espect
ed,
wit
hnodi
minut
ion
oft
hei
rex
ist
ingsal
ari
es,
emol
ument
s,r
anksand
ot
herbenef
it
s;
"
(2)Theel
ect
ri
ccooper
ati
vesr
egi
ster
edwi
tht
he
Aut
hor
it
ywi
thex
ist
ingl
oansobt
ainedf
rom NEA
af
terJune26,
2001shal
lcont
inuet
oobser
vet
he
t
ermsofsuchl
oansunt
ilf
ull
pay
mentor
set
tl
ementt
her
eof
;

"
(3)Ex
ceptaspr
ovi
dedi
nthei
mmedi
atel
y
pr
ecedi
ngpar
agr
aph,
theNEAshal
lnol
onger
ex
erci
ser
egul
ator
yorsuper
visor
ypower
son
el
ect
ri
ccooper
ati
vesdul
yregi
ster
edwi
tht
he
Aut
hor
it
y;

"
(4)El
ect
ri
ccooper
ati
vesr
egi
ster
edwi
tht
he
Aut
hor
it
yar
eent
it
ledt
ocongr
essi
onal
all
ocat
ions,
gr
ant
s,subsi
diar
iesandot
herf
inanci
alassi
stance
f
orr
ural
elect
ri
fi
cat
ionwhi
chcanbecour
sed
t
hrought
heDepar
tmentofEner
gy,
theAut
hor
it
y
and/
orl
ocal
gov
ernmentuni
ts.Theel
ect
ri
c
cooper
ati
vesr
egi
ster
edundert
hisCodecanav
ail
oft
hef
inanci
alser
vicesandt
echni
cal
assi
stance
pr
ovi
dedbyt
hegov
ernmentf
inanci
ali
nst
it
uti
ons
andt
echni
cal
dev
elopmentagenci
esont
erms
r
espect
ingt
hei
rindependenceasaut
onomous
cooper
ati
ves;

"
(5)Al
lcondonedl
oans,
subsi
dies,
grant
sand
ot
herassi
stanceshal
lfor
m par
toft
hedonat
ed
capi
tal
andf
undsoft
heel
ect
ri
ccooper
ati
vesand
assuch,
itshal
lnotbesol
d,t
radednorbedi
vi
ded
i
ntoshar
ehol
dingsatanyt
ime;
thesedonat
ed
capi
tal
/fundshal
lbev
aluat
edf
ort
hesol
epur
pose
ofdet
ermi
ningt
heequi
typar
ti
cipat
ionoft
he
member
s:Pr
ovi
ded,
Thati
nthecaseof
di
ssol
uti
onoft
hecooper
ati
ve,
sai
ddonat
ed
capi
tal
shal
lbesubj
ectt
oescheat
;and

"
(6)El
ect
ri
ccooper
ati
vesr
egi
ster
edandconf
ir
med
wi
tht
heAut
hor
it
yunderRepubl
i
cActNo.6938
andRepubl
i
cActNo.6939ar
eher
ebydeemed
r
egi
ster
edundert
hisCode.

"
ART.133.Shar
eCapi
tal
int
heEl
ect
ri
c
Cooper
ati
ves.–Theel
ect
ri
ccooper
ati
veshal
l
i
ssueanddi
str
ibut
eshar
ecer
ti
fi
cat
esundert
he
nameoft
hei
rmember
s,t
aki
ngi
ntoconsi
der
ati
on
t
hei
rpr
evi
ousequi
tycont
ri
but
ions,
the
amor
ti
zat
ioncomponentt
hrought
hepay
ment
s
made,
capi
tal
bui
l
d-upandot
hercapi
tal
cont
ri
but
ions.

"
ART.134.Cancel
l
ati
onofRegi
str
ati
onwi
tht
he
Aut
hor
it
y.–Thecancel
l
ati
onoft
her
egi
str
ati
onof
anel
ect
ri
ccooper
ati
veshal
lbegr
ant
edbyt
he
Aut
hor
it
yaspr
ovi
dedunderAr
ti
cles64t
o70of
t
hisCode.

"
TheAut
hor
it
y,i
nconsul
tat
ionwi
tht
heconcer
ned
cooper
ati
vesect
or,
shal
li
ssueappr
opr
iat
erul
es
andr
egul
ati
onsper
tai
ningt
othepr
ovi
sionsoft
his
Chapt
er.
"

SEC.
19.Ar
ti
cles119,
120and121ofChapt
erXVI
onMi
scel
l
aneousPr
ovi
sionsoft
hesameCode
ar
eher
ebyamendedandshal
lnowr
ead,
as
f
oll
ows:

CHAPTERXVI
II
MI
SCELLANEOUSPROVI
SIONS

"
ART.135.Compl
i
anceWi
thOt
herLaws.–The
LaborCodeandal
lot
herl
aborl
aws,
theSoci
al
Secur
it
yAct
,theMedi
cal
Car
eAct
,andal
lot
her
soci
all
egi
slat
ions,
andal
lot
herl
awsand
ex
ecut
iveor
der
sshal
lappl
ytocooper
ati
vesdul
y
r
egi
ster
edundert
hisCode.

"
ART.136.Regi
sterofCooper
ati
ves.–The
Aut
hor
it
yshal
lest
abl
i
shar
egi
sterwhi
chshal
l
cont
ainachr
onol
ogi
cal
ent
ryoft
henameofev
ery
cooper
ati
ver
egi
ster
edordi
ssol
vedundert
his
Codet
oget
herwi
tht
hebasi
cinf
ormat
ionr
equi
red
f
orr
egi
str
ati
onordi
ssol
uti
onandanyot
her
i
nfor
mat
ionconsi
der
edusef
ul.TheAut
hor
it
yshal
l
publ
i
shannual
l
yal
i
stofex
ist
ingcooper
ati
ves,
cooper
ati
vesunderdi
ssol
uti
onandt
hosewhose
r
egi
str
ati
onar
ecancel
l
eddur
ingt
hey
eart
oget
her
wi
thsuchi
nfor
mat
iononeachoft
hem asmaybe
pr
escr
ibedi
nther
ulesandr
egul
ati
ons.

"
ART.137.Set
tl
ementofDi
sput
es,
Conci
l
iat
ion,
andMedi
ati
onPr
oceedi
ngs.–Di
sput
esamong
member
s,of
fi
cer
s,di
rect
ors,
andcommi
tt
ee
member
s,andi
ntr
a-cooper
ati
ve,
int
er-
cooper
ati
ve,
i
ntr
a-f
eder
ati
onori
nter
-f
eder
ati
ondi
sput
esshal
l
,
asf
araspr
act
icabl
e,beset
tl
edami
cabl
yin
accor
dancewi
tht
heconci
l
iat
ionormedi
ati
on
mechani
smsembodi
edi
ntheby
lawsof
cooper
ati
vesandi
nsuchot
herappl
i
cabl
elaws.

"
Theconci
l
iat
ionandmedi
ati
oncommi
tt
eeoft
he
cooper
ati
veshal
lfaci
l
itat
etheami
cabl
e
set
tl
ementofi
ntr
a-cooper
ati
vedi
sput
esand
di
sput
esamongmember
s,of
fi
cer
s,di
rect
ors,
and
commi
tt
eemember
s.

"
Shoul
dsuchconci
l
iat
ionormedi
ati
onpr
oceedi
ng
f
ail
,themat
tershal
lbeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ion:
Prov
ided,
howev
er,
Thatbef
oreany
par
tycanv
ali
dlyf
il
eacompl
aintwi
tht
heAut
hor
it
y
f
orv
olunt
aryar
bit
rat
ion,
itmustf
ir
stsecur
ea
cer
ti
fi
cat
ionf
rom i
tsconci
l
iat
ionandmedi
ati
on
commi
tt
eeandf
rom i
tsconci
l
iat
ionand
medi
ati
oncommi
tt
eeandf
rom t
hecooper
ati
ve
uni
onorf
eder
ati
ont
owhi
chi
tbel
ongst
hat
despi
teal
lef
for
tst
oset
tl
ethei
ssues,
thesame
hav
efai
l
ed.

"
Thej
uri
sdi
cti
onoft
hev
olunt
aryar
bit
rat
orsshal
l
beex
clusi
veandor
igi
nal
andt
hei
rdeci
sionsshal
l
beappeal
abl
etot
heOf
fi
ceoft
hePr
esi
dent
.The
Aut
hor
it
yshal
li
ssueandadoptt
hepr
operr
ulesof
pr
ocedur
egov
erni
ngar
bit
rat
ionast
hepr
imar
y
andex
clusi
vemodef
ordi
sput
eresol
uti
oni
n
accor
dancewi
tht
heAl
ter
nat
iveDi
sput
e
Resol
uti
onActof2004.

"
Fort
hispur
pose,
theAut
hor
it
yshal
lconst
it
utea
l
i
stofqual
i
fiedv
olunt
aryar
bit
rat
ors.
"

SEC.20.Anewar
ti
clei
sinser
tedi
nChapt
erXVI
II
ont
heMi
scel
l
aneousPr
ovi
sionsoft
hesame
Codeandshal
lread,
asf
oll
ows:

"
ART.138.Joi
ntCongr
essi
onal
Over
sight
Commi
tt
eeonCooper
ati
ve(
JCOCC)
.–Ther
eis
her
ebycr
eat
edaJoi
ntCongr
essi
onal
Over
sight
Commi
tt
eecomposedoft
heChai
rmanoft
he
Senat
eCommi
tt
eeonCooper
ati
vesandt
he
Chai
rmanoft
heHouseCommi
tt
eeon
Cooper
ati
vesDev
elopment
,wi
thf
our(
4)member
s
eachf
rom bot
hHouses.Thesai
dmember
sshal
l
bedul
yappoi
ntedbyt
heSenat
ePr
esi
dentandt
he
Speakeroft
heHouseofRepr
esent
ati
vesf
rom t
he
member
soft
her
espect
ivecommi
tt
eebasedon
t
hepr
opor
ti
onal
repr
esent
ati
onoft
hepar
ti
esor
coal
i
tiont
her
ein.

"
TheJoi
ntOv
ersi
ghtCommi
tt
eeshal
lrev
iewand
appr
ovet
hei
mpl
ement
ingr
ulesandr
egul
ati
onsof
t
hisCodeandmoni
tori
tspr
operi
mpl
ement
ati
on.

"
Theannual
appr
opr
iat
efort
heov
ersi
ght
commi
tt
eeshal
lbechar
gedt
othebudgetofbot
h
HousesofCongr
essi
ntheGener
alAppr
opr
iat
ions
Act(
GAA)
."

SEC.21.Ar
ti
cle122i
sher
ebydel
eted.Ar
ti
cles123,
124,
125,
126,
127,
128,
129and130ofChapt
er
XVI
IonFi
nal
Prov
isi
onsoft
hisCodear
eamended
t
oread,
asf
oll
ows:

CHAPTERXI
X
FI
NALPROVI
SIONS

"
ART.139.I
mpl
ement
ingRul
esandRegul
ati
ons.–
TheAut
hor
it
yshal
li
ssuer
ulesandr
egul
ati
onst
o
i
mpl
ementt
hosepr
ovi
sionsoft
hisCodewhi
ch
ex
pressl
ycal
lfort
hei
ssuancet
her
eof
.Thi
s
par
agr
aphshal
lnotappl
ytot
hosecaseswher
ein
aspeci
fi
cpr
ovi
sionoft
hisCodeex
pressl
y
desi
gnat
espar
ti
cul
argov
ernmentagenci
eswhi
ch
shal
li
ssuet
her
egul
ati
onscal
l
edf
orbyany
pr
ovi
sionoft
hisCode.

"
ART.140.Penal
Prov
isi
ons.–Thef
oll
owi
ngact
s
oromi
ssi
onsaf
fect
ingcooper
ati
vesar
eher
eby
pr
ohi
bit
ed:

"
(1)Theuseoft
hewor
d‘cooper
ati
ve’
byany
per
sonorofper
sonsoror
gani
zat
ions,
unl
essdul
y
r
egi
ster
edasacooper
ati
veundert
hisCode
ex
ceptaspr
ovi
dedf
orunderAr
ti
cle130her
eof
.In
caseofv
iol
ati
on,
thei
ndi
vi
dual
ori
ndi
vi
dual
s
concer
ned,
ori
nthecaseofanor
gani
zat
ion,
its
of
fi
cer
sanddi
rect
orsshal
l
,uponconv
ict
ion,
each
suf
fert
hepenal
tyofi
mpr
isonmentofnotl
ess
t
hant
wo(
2)y
ear
snormor
ethanf
ive(
5)y
ear
s
andaf
inenotex
ceedi
ngTwent
ythousandpesos
(
P20,
000.
00)orbot
hatt
hedi
scr
eti
onoft
hecour
t;

"
TheAut
hor
it
ymaymot
upr
opr
io,
ini
ti
ate
compl
aint
sforv
iol
ati
onsoft
hispr
ovi
sion.

"
(2)Anyper
sonwhowi
l
lful
l
yat
tempt
sinany
mannert
oev
adeordef
eatt
axi
nvi
olat
ionoft
he
pr
ovi
sionsofAr
ti
cles60and61oft
hisCodeshal
l
i
naddi
ti
ont
her
eof
,bepuni
shedbyaf
ineofnot
l
esst
hanThi
rt
ythousandpesos(
P30,
000.
00)but
notmor
ethanOnehundr
edt
housandpesos
(
P100,
000.
00)andsuf
feri
mpr
isonmentofnot
l
esst
hant
wo(
2)y
ear
sbutnotmor
ethanf
our(
4)
y
ear
s:Pr
ovi
ded,
Thatt
heconv
ict
ionoracqui
tt
al
obt
ainedundert
hisAr
ti
cleshal
lnotbeabart
othe
f
il
ingofaci
vi
lsui
tfort
hecol
l
ect
ionoft
axes;

"
(3)Di
rectori
ndi
rectv
iol
ati
onorci
rcumv
ent
ionof
t
hepr
ovi
sionsofAr
ti
cles60and61oft
hisCode
commi
tt
eebyanypubl
i
cof
fi
cial
orempl
oyeeof
anybur
eau,
off
iceoragencyoft
hegov
ernment
t
hatdepr
ives,
dimi
nishesori
nanymannerhi
nder
s
orr
est
ri
ctsanydul
yregi
ster
edcooper
ati
vef
rom
t
hef
ull
enj
oymentoft
heex
empt
ionf
rom t
he
pay
mentoft
het
axes,
feesandchar
ges
enumer
atedt
her
ein,
shal
luponconv
ict
ion,
suf
fer
apenal
tyofnotl
esst
hatone(
1)y
earbutnot
mor
ethanf
ive(
5)y
ear
simpr
isonmentoraf
inei
n
t
heamountofnotl
esst
hanFi
vet
housandpesos
(
P5,
000.
00)orbot
hatt
hedi
scr
eti
onoft
hecour
t
andshal
lfur
therbedi
squal
i
fiedt
ohol
danyot
her
of
fi
ce;

"
(4)Di
rectori
ndi
recti
nter
fer
enceori
nter
vent
ion
byanypubl
i
cof
fi
cial
orempl
oyeei
ntot
hei
nter
nal
af
fai
rsofacooper
ati
veofwhi
chhei
snota
member
,suchas,
butnotl
i
mit
edt
o,t
hef
oll
owi
ng:
"
(a)I
nfl
uenci
ngt
heel
ect
ionorappoi
ntmentof
of
fi
cer
s,di
rect
ors,
commi
tt
eemember
sand
empl
oyeest
hroughpubl
i
corpr
ivat
eendor
sement
orcampai
gnf
ororagai
nstanyper
sonorgr
oupof
per
sons;

"
(b)Requi
ri
ngpr
iorcl
ear
ancesf
oranypol
i
cyor
deci
sionwi
thi
nthecooper
ati
ve;

"
(c)Request
ingordemandi
ngf
ort
hecr
eat
ionof
posi
ti
onsoror
gani
zat
ional
uni
ts,
or
r
ecommendi
nganyper
sonf
orappoi
ntment
,
t
ransf
er,
orr
emov
alf
rom hi
sposi
ti
on;
or

"
(d)Anyot
heract
sini
mical
oradv
erset
othe
aut
onomyandi
ndependenceofcooper
ati
ves.

"
(5)Adi
rect
or,
off
icerorcommi
tt
eememberwho
v
iol
atedt
hepr
ovi
sionsofAr
ti
cle45ont
heLi
abi
l
ity
ofDi
rect
ors,
Off
icer
sandCommi
tt
eeMember
s,
Ar
ti
cle48ont
heDi
sloy
alt
yofaDi
rect
or,
and
Ar
ti
cle49ont
heI
ll
egal
UseofConf
ident
ial
I
nfor
mat
ionshal
luponconv
ict
ionsuf
feraf
ineof
notl
esst
hanFi
vehundr
edt
housandpesos
(
P500,
000.
00)normor
ethanFi
vehundr
ed
t
housandpesos(
P500,
000.
00)ori
mpr
isonment
ofnotl
esst
hanf
ive(
5)y
ear
sbutnotmor
ethan
t
en(
10)y
ear
sorbot
hatt
hecour
t’
sdi
scr
eti
on;

"
(6)Thef
oll
owi
ngar
econsi
der
edof
fenses
puni
shabl
ebyapenal
tyofi
mpr
isonmentofnot
l
esst
hanone(
1)y
earnormor
ethanf
ive(
5)y
ear
s
oraf
ineofnotmor
ethanFi
ft
ythousandpesos
(
P50,
000.
00)orbot
hatt
hedi
scr
eti
onoft
hecour
t:

"
(a)Omi
ssi
onorr
efusal
tof
urni
shanyi
nfor
mat
ion,
r
epor
torot
herdocumentt
hati
srequi
redunder
t
hisCode;

"
(b)Pr
ovi
dingi
nfor
mat
ion,
repor
tsorot
her
document
stot
heAut
hor
it
ythatar
erequi
red
undert
hisCodewhi
cht
heper
sonknowst
obe
f
alseormi
sleadi
ng;
"
(c)Omi
ssi
onorr
efusal
tokeepabookorr
egi
ster
undert
hisCodeort
omaket
her
equi
redent
ry
t
her
ein;

"
(d)Maki
nganent
ryr
equi
redundert
hisCodei
na
bookorr
egi
ster
,whi
cht
heper
sonknowst
obe
f
alseormi
sleadi
ng;

"
(e)Hi
nder
inganaut
hor
izedper
sonf
rom maki
ng
ani
nspect
ion,
audi
t,ex
ami
nat
ionori
nvest
igat
ion
r
equi
redundert
hisCode;

"
(f)Fai
l
uret
ocompl
ywi
thanor
derorwr
it
ten
i
nst
ruct
ionsi
ssuedorgi
venbyt
heAut
hor
it
y;

"
(g)Vi
olat
ionoft
hepr
ovi
sionsr
egar
ding
t
ransact
ionswi
thar
est
ri
ctedpar
ty;
and

"
(h)Abet
ti
ng,
counsel
i
ng,
all
owi
ng,
aut
hor
izi
ngor
commandi
nganot
herper
sont
ocommi
tan
of
fensepuni
shabl
ebyt
hisCode:
Prov
ided,
Thati
n
caset
hev
iol
atori
sacooper
ati
veorj
uri
dical
per
son,
thepenal
tyshal
lbei
mposedoni
ts
di
rect
orsandof
fi
cer
s.

"
(7)Anyv
iol
ati
onofanypr
ovi
sionoft
hisCodef
or
whi
chnopenal
tyi
simposedshal
lbepuni
shedby
i
mpr
isonmentofnotl
esst
hansi
x(6)mont
hsnor
mor
ethanone(
1)y
earandaf
ineofnotl
esst
han
Onet
housandpesos(
P1,
000.
00)
,orbot
hatt
he
di
scr
eti
onoft
hecour
t.

"
Incaseofv
iol
ati
onofanypr
ovi
sionoft
hisCode,
t
hei
ndi
vi
dual
ori
ndi
vi
dual
s,andi
nthecaseof
or
gani
zat
ionsorgov
ernmentagenci
es,
itsof
fi
cer
s,
anddi
rect
orsshal
l
,uponconv
ict
ionbyaCour
t,
eachsuf
ferapenal
tyofnotl
esst
hant
wo(
2)
y
ear
sbutnotmor
ethanf
ive(
5)y
ear
s
i
mpr
isonmentoraf
inei
ntheamountofnotl
ess
t
hanTwent
ythousandpesos(
P20,
000.
00)
,or
bot
hatt
hedi
scr
eti
onoft
hecour
t.I
nthecaseofa
publ
i
cof
fi
cial
orempl
oyee,
theof
fendershal
l
uponconv
ict
ion,
suf
fert
heaccessor
ypenal
tyof
t
empor
aryabsol
utedi
squal
i
ficat
ion.
"
ART.141.Pr
int
ingandDi
str
ibut
ion.–(
1)The
Nat
ional
Pri
nti
ngOf
fi
ceshal
lpubl
i
sht
hisCodei
n
t
heOf
fi
cial
Gaz
ett
einf
ull
wit
hinsi
xty(
60)day
s
f
rom t
hedat
eofappr
oval
ther
eof
.Copi
esoft
his
Codeshal
lbegi
vent
oev
erydepar
tment
,agency
andi
nst
rument
ali
tyoft
heNat
ional
Gov
ernment
,
i
ncl
udi
ngr
egi
onal
,pr
ovi
nci
alof
fi
cesandl
ocal
gov
ernment
sincl
udi
nggov
ernment
-ownedand
cont
rol
l
edcor
por
ati
ons.

"
(2)Al
ldul
yregi
ster
edcooper
ati
vesandt
hei
r
f
eder
ati
ons,
uni
onsandassoci
ati
ons,
and
cooper
ati
vecor
por
ati
onsshal
lbegi
venone(
1)
copyeachatcost
.Ther
eaf
ter
,ev
erynewl
y
r
egi
ster
edcooper
ati
veshal
lbei
ssuedatcosta
copyoft
hisCodeandt
her
egul
ati
ons
pr
omul
gat
edt
her
eont
oget
herwi
thi
tscer
ti
fi
cat
e
ofr
egi
str
ati
on.

"
ART.142.I
nter
pret
ati
onandConst
ruct
ion.–I
n
caseofdoubtast
othemeani
ngofanypr
ovi
sion
ofhi
sCodeort
her
egul
ati
onsi
ssuedi
npur
suance
t
her
eof
,thesameshal
lber
esol
vedl
i
ber
all
yin
f
avoroft
hecooper
ati
vesandt
hei
rmember
s.

"
ART.143.Repeal
i
ngCl
ause.–Ex
ceptas
ex
pressl
ypr
ovi
dedbyt
hisCode,
Presi
dent
ial
Decr
eeNo.175andal
lot
herl
aws,
orpar
tst
her
eof
,
i
nconsi
stentwi
thanypr
ovi
sionoft
hisCodeshal
l
bedeemedr
epeal
ed:
Prov
ided,
Thatt
he
pr
ovi
sionsofSect
ions3,
5,and7ofPr
esi
dent
ial
Decr
eeNo.1645,
Execut
iveOr
derNo.623,
ser
ies
of2007.Rev
enueRegul
ati
onNo.20-
2001,
andal
l
l
aws,
decr
ees,
execut
iveor
der
s,i
mpl
ement
ing
r
ulesandr
egul
ati
ons,
BIRci
rcul
ars,
memor
andum
or
der
s,l
ett
ersofi
nst
ruct
ion,
local
gov
ernment
or
dinances,
orpar
tst
her
eofi
nconsi
stentwi
thany
oft
hepr
ovi
sionsoft
hisActar
eher
ebyr
epeal
ed,
amendedormodi
fi
edaccor
dingl
y.

"
ART.
144.Tr
ansi
tor
yPr
ovi
sions.
-(1)Al
l
cooper
ati
vesr
egi
ster
edandconf
ir
medwi
tht
he
Aut
hor
it
yunderRepubl
i
cActNo.6938and
Republ
i
cActNo.6939,
areher
ebydeemed
r
egi
ster
edundert
hiscode,
andanewcer
ti
fi
cat
e
ofr
egi
str
ati
onshal
lbei
ssuedbyt
heaut
hor
it
y:
Pr
ovi
ded,
Thatsuchcooper
ati
veshal
lsubmi
tto
t
henear
estof
fi
ceoft
heaut
hor
it
yacopyoft
hei
r
cer
ti
fi
cat
eofr
egi
str
ati
onorcer
ti
fi
cat
eof
conf
ir
mat
ion,
thear
ti
clesofcooper
ati
on,
thei
r
by
laws,
andt
hei
rlat
estaudi
tedf
inanci
al
st
atementwi
thi
none(
1)y
earf
rom t
heef
fect
ivi
ty
oft
hiscode,
other
wiset
heshal
lbedeemed
cancel
l
edmot
upr
opr
io.

"
(2)Fol
l
owi
ngt
hei
ssuanceoft
henewcer
ti
fi
cat
e
ofr
egi
str
ati
on,
ther
egi
ster
edcooper
ati
vesshal
l
secur
edt
hei
rcer
ti
fi
cat
eoft
axex
empt
ionf
rom t
he
near
estof
fi
ceoft
heBur
eauofI
nter
nal
Rev
enue
(
BIR)
:Pr
ovi
ded,
Thatsuchex
empt
ionsshal
lbe
v
ali
doff
ive(
5)y
ear
sfr
om t
hedat
eofi
ssue:
Pr
ovi
ded,
fur
ther
,Thatal
lunpai
dassessment
sof
pr
evi
ousl
yregi
ster
edcooper
ati
veshal
lbet
he
subj
ectofcompr
omi
seset
tl
ementont
erms
f
avor
abl
etosuchcooper
ati
ve;
and:
Prov
ided,
f
inal
l
y,Thatt
heBI
Randt
heaut
hor
it
yshal
lbe
j
oint
lyi
ssuet
henecessar
yregul
ati
onsont
his
ex
empt
ionandcompr
omi
sewi
thi
nni
net
y(90)
day
sfr
om t
heef
fect
ivi
tyf
rom t
hisCode.
"
(3)Regi
str
ati
onofel
ect
ri
ccooper
ati
veswi
tht
he
Aut
hor
it
yshal
lnotbeconsi
der
edasat
ransf
err
ed
ofowner
shi
pofi
tsasset
sandl
i
abi
l
iti
esnorshal
l
i
tconst
it
uteachangei
nthenat
ure,
str
uct
ure,
and
st
atusoft
hecooper
ati
ve.Sai
dregi
str
ati
onshal
l
notr
esul
tint
her
evocat
ionoft
hecondonedl
oans
underRepubl
i
cActNo.9136,
other
wiseknownas
t
heEl
ect
ri
cPowerI
ndust
ryRef
orm Act
:Pr
ovi
ded,
Thatel
ect
ri
ccooper
ati
veswi
thex
ist
ingl
oansshal
l
notbesubj
ectt
othecont
rol
andsuper
visi
onsof
i
tscr
edi
tor
sandshal
lonl
ybel
i
mit
edt
othe
f
ulf
il
lmentofeachci
vi
lobl
i
gat
ions.

"
ART.
145.Separ
abi
l
tyCl
ause.-Shoul
danypar
tof
t
hiscodebedecl
aredunconst
it
uti
onal
,thev
ali
dit
y
ofr
emai
ningpr
ovi
sionher
eofshal
lremai
ninf
ull
andef
fect
.

"
ART.
146.Ef
fect
ivi
tyCl
ause.-Thi
scodeshal
ltake
ef
fectf
if
teen(
15)day
sfr
om i
tspubl
i
cat
ioni
na
newspaperofgener
alci
rcul
ati
on.
Appr
oved,

(
Sgd.
)PROSPEROC.NOGRALES
Speakeroft
heHouseofRepr
esent
ati
ves
(
Sgd.
)JUANPONCEENRI
LE
Pr
esi
dentoft
heSenat
e

Thi
sActwhi
chi
saconsol
i
dat
ionofSenat
eBi
l
lNo.
2264andHouseBi
l
lNo.4312wasf
inal
l
ypassed
byt
heSenat
eandt
heHouseofRepr
esent
ati
ves
onDecember16,
2008.

(
Sgd.
)MARI
LYNB.BARUA-
YAP
Secr
etar
yGener
al
HouseofRepr
esenat
ives
(
Sgd.
)EMMALI
RIO-
REYES
Secr
etar
yofSenat
e
Appr
oved:
FEB17,
2009

(
Sgd.
)GLORI
AMACAPAGAL-
ARROYO
Pr
esi
dentoft
hePhi
l
ippi
nes

TheLawphi
lPr
oject-Ar
ell
anoLawFoundat
ion

RULESANDREGULATI
ONI
MPLEMENTI
NG
CERTAI
NPROVI
SIONS
OFTHEPHI
LIPPI
NECOOPERATI
VECODEOF2008
(
REPUBLI
CACTNO.9520)

Pur
suantt
othepr
ovi
sionofAr
t.139ofRepubl
i
c
ActNo.952ot
her
wiseknownast
hePhi
l
ippi
ne
Cooper
ati
veCodeof2008,
theCooper
ati
ve
Dev
elopmentAut
hor
it
yher
ebyi
ssuest
he
f
oll
owi
ngr
ulesandr
egul
ati
onsi
mpl
ement
ing
cer
tai
npr
ovi
sionsoft
hesai
dCode.
TI
TLESANDDEFI
NITI
ONS

Sect
ion1.Ti
tl
e.TheseRul
esshal
lbeknownast
he
"
Rul
esandRegul
ati
onsI
mpl
ement
ingCer
tai
n
Pr
ovi
sionsoft
hePhi
l
ippi
neCooper
ati
veCodeof
2008.
"

Sect
ion2.Def
ini
ti
onofTer
ms.Fort
hepur
poseof
t
heseRul
esandr
egul
ati
ons,
thef
oll
owi
ngt
erms
ar
edef
inedasf
oll
ows:

(
1)Al
ter
nat
iveDi
sput
eResol
uti
on-shal
lref
ert
o
anypr
ocessorpr
ocedur
eusedt
oresol
vea
di
sput
eorcont
rov
ersy
,ot
hert
hanbyadj
udi
cat
ion
ofapr
esi
dingJudgeofCour
toranof
fi
cerofa
gov
ernmentagency
,inwhi
chaneut
ral
thi
rdpar
ty
par
ti
cipat
est
oassi
sti
nther
esol
uti
onofi
ssue,
whi
chi
ncl
udesar
bit
rat
ion,
medi
ati
on,
conci
l
iat
ion,
ear
lyneut
ral
eval
uat
ion,
mini
tri
al,
orany
combi
nat
iont
her
eof
.

(
2)Ar
bit
rat
or-shal
lref
ert
otheper
sonappoi
nted
t
orenderanAwar
d/Deci
sion,
aloneorwi
thot
her
s,
i
nadi
sput
ethati
sthesubj
ectofanAr
bit
rat
ion
Agr
eement
.

(
3)Ar
eaofBusi
nessOper
ati
on-shal
lref
ert
othe
pr
inci
pal
placeofbusi
nessofacooper
ati
vewher
e
t
hecooper
ati
veconduct
sit
sbusi
nessaspr
ovi
ded
f
ori
nthei
rAr
ti
clesofCooper
ati
veandBy
-l
aws.

(
4)Ar
eaofOper
ati
on-shal
lref
ert
othear
eawher
e
t
hecooper
ati
vemember
scomef
rom aspr
ovi
ded
f
ori
nthei
rAr
ti
clesofCooper
ati
onandBy
-l
aws.

(
5)Ar
ti
clesofCooper
ati
on-shal
lref
ert
othe
Ar
ti
clesofCooper
ati
onr
egi
ster
edundert
heCode,
wi
thi
ncl
udesar
egi
ster
edamendmentt
her
eto,
if
appl
i
cabl
e.

(
6)Associ
ateMember-shal
lref
ert
omemberofa
cooper
ati
vewhohasnor
ightt
ovot
eorbev
oted
uponandshal
lbeent
it
ledonl
ytosuchr
ight
sand
pr
ivi
l
egesast
heBy
-l
awsmaypr
ovi
de.
(
7)Aut
hor
it
y-shal
lref
ert
otheCooper
ati
ve
Dev
elopmentAut
hor
it
y(CDA)
.

(
8)Aut
hor
izedShar
eCapi
tal
-shal
lref
ert
othe
capi
tal
i
zat
ionoft
hecooper
ati
veaspr
escr
ibedi
n
t
heAr
ti
clesofCooper
ati
on

(
9)Awar
d/Deci
sion-shal
lref
ert
oanypar
ti
alor
f
inal
deci
sionbyanAr
bit
rat
ori
nresol
vi
ngt
he
i
ssuei
nacont
rov
ersy
.

(
10)Boar
dofLi
qui
dat
ors/
Trust
ees-shal
lref
ert
o
t
hebodyappoi
ntedbyt
heBoar
dofDi
rect
orsor
el
ect
edbyt
heGener
alAssembl
ythatshal
lcause
t
hel
i
qui
dat
ionoft
hecooper
ati
vei
ncaseof
v
olunt
arydi
ssol
uti
onorappoi
ntedbyt
he
Aut
hor
it
y/Cour
tincaseofi
nvol
unt
arydi
ssol
uti
on
ofacooper
ati
ve.

(
11)BondofMember
shi
p-shal
lref
ert
othe
condi
ti
onswher
emember
sassoci
atet
hemsel
ves
t
oat
tai
nthei
rcommongoal
sandobj
ect
iveswhi
ch
mayei
therber
esi
dent
ial
,occupat
ional
,
associ
ati
onal
,andi
nst
it
uti
onal
.

(
12)By
-Laws-shal
lref
ert
otheBy
-l
awsr
egi
ster
ed
undert
heCodewhi
chi
ncl
udesanyr
egi
ster
ed
amendment
sther
eto.

(
13)Capi
tal
-shal
lref
ert
othesum t
otal
of
member
'sshar
ecapi
tal
incl
udi
ngdeposi
ts,
r
evol
vi
ngcapi
tal
,subsi
dies,
donat
ions,
legaci
es,
gr
ant
s,ai
ds,
landst
ruct
ures,
plant
s,equi
pment
f
aci
l
iti
es,
machi
nesandot
herasset
sofa
cooper
ati
ve.

(
14)Cer
ti
fi
cat
eofMer
ger-shal
lref
ert
othe
documenti
ssuedbyt
heAut
hor
it
yev
idenci
ng
r
egi
str
ati
onofmer
ger
.

(
15)Code-shal
lref
ert
otheRepubl
i
cAct
sNo.
9520,
other
wiseknownast
hePhi
l
ippi
ne
Cooper
ati
veCodeof2008.
(
16)Conci
l
iat
ion-shal
lref
ert
othepr
ocess
wher
ebyaneut
ral
thi
rdpar
tyt
akesav
igor
ousand
act
iver
olei
nassi
sti
ngdi
sput
ant
stof
ormul
ate
bet
weenandamongt
hem anaccept
abl
esol
uti
on
i
nor
dert
oreachanami
cabl
eset
tl
ement
.

(
17)Conser
vat
or-shal
lref
ert
oanyper
son
appoi
ntedbyt
heAut
hor
it
yempower
edt
otake
char
geoft
heasset
s,l
i
abi
l
iti
es,
andt
he
managementoft
hecooper
ati
ve,
aft
erf
indi
ngt
hat
t
hecooper
ati
vei
sint
hest
ateofcont
inui
ng
i
l
li
qui
dit
yorunwi
l
li
ngnesst
omai
ntai
nacondi
ti
on
ofl
i
qui
dit
ywhi
chi
sdeemedadequat
etopr
otect
t
hei
nter
estofmember
sandcr
edi
tor
soft
he
cooper
ati
ve.

(
18)Consol
i
dat
ion-shal
lref
ert
oauni
onoft
woor
mor
eex
ist
ingcooper
ati
vesbel
ongi
ngt
othesame
cat
egor
ytoaf
orm anewcooper
ati
vecal
l
edt
he
consol
i
dat
edcooper
ati
ve.
(
19)Const
it
uentCooper
ati
ves-shal
lref
ert
otwo
ormor
eex
ist
ingcooper
ati
veswhi
char
epar
ti
est
o
amer
gerorconsol
i
dat
ion.

(
20)Cr
edi
tCooper
ati
ve-shal
lref
ert
oonet
hat
pr
omot
esandunder
takessav
ingsandl
endi
ng
ser
vicesamongi
tsmember
s.I
tgener
atesa
commonpool
off
undsi
nor
dert
opr
ovi
de
f
inanci
alassi
stanceandot
herr
elat
edf
inanci
al
ser
vicest
oit
smember
sforpr
oduct
iveand
pr
ovi
dentpur
poses.

(
21)Cumul
ati
veI
nter
est-shal
lref
ert
othei
nter
est
duet
oamembert
hatmustbeaddedt
oinf
utur
e
i
nter
esti
fiti
snotpai
dwhendue.

(
22)Del
ayi
nthesubmi
ssi
onofr
epor
ts-shal
lref
er
t
othef
ail
ureoft
hecooper
ati
vest
osubmi
ta
r
epor
tont
ime.

(
23)Di
sput
e-shal
lref
ert
oint
ra/
int
ercooper
ati
ve
cont
rov
ersyorgr
iev
ancef
rom anyv
iol
ati
onor
di
sagr
eementov
eranypr
ovi
sions,
incl
udi
ngany
v
iol
ati
onsoft
her
ight
sandcondi
ti
onsof
member
shi
ppr
ovi
dedi
nthecooper
ati
veBy
-l
aws
and/
ori
ntheCooper
ati
veCode,
whi
chmaybet
he
subj
ectofaf
ormal
ori
nfor
mal
requestf
or
conci
l
iat
ion/
medi
ati
onorar
bit
rat
ionassi
stance
soughtbyei
theroneorbot
hpar
ti
es.

(
24)Di
ssent
ingMember-shal
lref
ert
oamember
pr
esentdur
ingt
hemeet
ingandwhoact
ual
l
y
v
otedagai
nstt
hepr
oposedact
ivi
ty/
proj
ectofa
cooper
ati
ve.

(
25)Di
vi
sion-shal
lref
ert
otheactofspi
ti
nga
si
ngl
ecooper
ati
vei
ntot
woormor
ecooper
ati
ves,
wher
eint
heor
igi
nal
cooper
ati
veshal
lbedi
ssol
ved
andt
her
esul
ti
ngcooper
ati
vesshal
lacqui
re
separ
ateanddi
sti
nctj
uri
dical
per
sonal
i
ties.

(
26)Donat
edCapi
tal
-shal
lref
ert
othesubsi
dies,
gr
ant
s,donat
ionsandai
dsr
ecei
vedbyt
he
cooper
ati
vef
rom anyper
son,
whet
hernat
ural
or
j
uri
dical
,l
ocal
orf
orei
gnbot
hgov
ernmentand
pr
ivat
e.

(
27)Escheat-shal
lref
ert
other
ightoft
heSt
atet
o
succeedt
opr
oper
tyei
therr
eal
orper
sonal
,when
nohei
rorr
ight
ful
clai
mantcanbef
oundt
hrough
anappr
opr
iat
elegal
proceedi
ng.

(
28)Equi
ty-shal
lref
ert
otheex
cessof
cooper
ati
veasset
sov
erl
i
abi
l
iti
es.

(
29)Fi
nanci
alSt
atement
s-shal
lref
ert
othe
meansi
.e.St
atementofFi
nanci
alCondi
ti
on
(
Bal
anceSheet
),St
atementofOper
ati
on
(
Stat
ementofNetSur
plus)andSt
atementofCash
Fl
ows,
bywhi
cht
hef
inanci
ali
nfor
mat
ion
accumul
atedandpr
ocessedi
nfi
nanci
al
account
ing,
isper
iodi
cal
l
ycommuni
cat
edt
othose
whousei
t.

(
30)Fi
nanci
alSer
viceCooper
ati
ve(
FSC)-shal
l
r
efert
ooneor
gani
zedf
ort
hepr
imar
ypur
poseof
engagi
ngi
nsav
ingandcr
edi
tser
vicesandot
her
f
inanci
alser
vicesr
egul
atedbyt
heBangkoSent
ral
ngPi
l
ipi
nas(
BSP)
.

(
31)Gener
alAssembl
y-shal
lref
ert
othef
ull
member
shi
poft
hecooper
ati
vedul
yassembl
ed
f
ort
hepur
poseofex
erci
singal
lther
ight
sand
per
for
mingal
ltheobl
i
gat
ionsper
tai
ningt
o
cooper
ati
ves,
aspr
ovi
dedbyt
hisCode,
its
Cooper
ati
onandBy
-l
aws.

(
32)Guar
dianCooper
ati
ve-shal
lref
ert
odul
y
r
egi
ster
edcooper
ati
vet
owhi
chal
abor
ator
y
cooper
ati
vei
saf
fi
li
atedwi
th.

(
33)I
nter
nal
Cont
rol
-shal
lref
ert
oal
lthesy
stem
andpr
ocedur
esadopt
edt
osaf
eguar
dthe
cooper
ati
ve'
sasset
s,checkt
heaccur
acyand
r
eli
abi
l
ityofi
tsaccount
ingdat
a,pr
omot
e
oper
ati
onal
eff
ici
encyandencour
ageadher
ence
t
opr
escr
ibedmanager
ial
pol
i
cies.

(
34)I
nvol
unt
aryDi
ssol
uti
on-shal
lref
ert
othe
t
ermi
nat
ionoft
hej
uri
dical
per
sonal
i
tyoft
he
cooper
ati
vet
hroughanappr
opr
iat
ejudi
cial
pr
oceedi
ngorbyOr
deroft
heAut
hor
it
y.

(
35)Labor
ator
yCooper
ati
ve-shal
lref
ert
oa
cooper
ati
vedul
yrecogni
zedbyt
heAut
hor
it
y,
f
ormedandmanagedpr
inci
pal
l
ybymi
nor
sandi
s
af
fi
li
atedwi
thanot
herr
egi
ster
edcooper
ati
ve
whi
chi
scal
l
edt
heguar
diancooper
ati
ve.

(
36)Li
qui
dat
ion-shal
lref
ert
othepr
ocessof
set
tl
ementandcl
osur
eoft
hecooper
ati
veaf
fai
rs,
di
sposi
ti
on,
conv
eyanceanddi
str
ibut
ionofi
ts
asset
s.

(
37)Medi
ati
on-shal
lref
ert
othepr
ocessi
nwhi
ch
amedi
ator
,sel
ect
edbyt
hedi
sput
ingpar
ti
es,
f
aci
l
iti
esacommuni
cat
ionandnegot
iat
ion,
and
assi
stst
hepar
ti
esi
nreachi
ngav
olunt
ary
agr
eementr
egar
dingadi
sput
e.

(
38)Mer
ger-shal
lref
ert
oauni
onoft
woormor
e
ex
ist
ingcooper
ati
vesbel
ongi
ngt
othesame
cat
egor
ywher
ebyt
hesur
viv
ingcooper
ati
ve,
r
etai
ningi
tsi
dent
it
y,absor
bsoneormor
e
const
it
uentcooper
ati
ves/
s.

(
39)Mi
nor-shal
lref
ert
oani
ndi
vi
dual
bel
ow
ei
ght
een(
18)y
ear
sofagebutatl
eastsev
en(
7)
y
ear
sol
d.

(
40)Mul
ti
pur
poseCooper
ati
ve-shal
lref
ert
oa
cooper
ati
ve,
whi
chcombi
nest
wo(
2)ormor
eof
t
hebusi
nessact
ivi
ti
esoft
hedi
ff
erentt
ypesof
cooper
ati
vesasenumer
atedunderAr
t.23oft
he
Code.

(
41)Networ
th-shal
lref
ert
oequi
tyi
ncl
usi
veof
member
'sequi
ty,
donat
ions,
grant
sandr
eser
ve
f
undsl
essun-
bookedal
l
owancef
orpr
obabl
e
l
ossesonl
oans,
inv
est
mentandot
herasset
sand
ot
hercapi
tal
adj
ust
ment
sasmayber
equi
redby
t
heCDA.
(
42)Numer
ousandDi
sper
sedMember
shi
p-shal
l
r
efert
oacooper
ati
vewhosemember
shi
par
ein
l
argenumberandgeogr
aphi
cal
l
y
scat
ter
ed/
dist
ri
but
edbyr
easonofgeogr
aphi
cal
l
ocat
ion,
wor
kshi
ftorot
hersi
mil
arcondi
ti
ons
maki
ngi
timpossi
bleanddi
ff
icul
ttoconductt
hei
r
gener
alassembl
ymeet
ing.

(
43)Pai
d-upShar
eCapi
tal
-shal
lref
ert
othe
por
ti
onoft
hesubscr
ibedshar
ecapi
tal
,whi
chhas
beenpai
dbyt
hemember
soft
hecooper
ati
ve.

(
44)Par
entCooper
ati
ve-shal
lref
ert
oa
cooper
ati
ve,
whi
chi
nit
iat
est
heor
gani
zat
ional
of
anot
hercooper
ati
vecal
l
edasubsi
diar
y
cooper
ati
veandpr
ovi
dest
echni
cal
,manager
ial
,
andf
inanci
alassi
stancet
her
eto.

(
45)Pat
ronageRef
und-shal
lref
ert
otheamount
r
etur
nedt
oindi
vi
dual
member
swhopat
roni
zet
he
goodsandser
vicesoft
hecooper
ati
vei
n
pr
opor
ti
ont
othei
rindi
vi
dual
pat
ronage.
(
46)Pl
anofMer
gerorConsol
i
dat
ion-shal
lref
ert
o
awr
it
tendocumentcont
aini
ngt
hepr
oposed
mer
gerorconsol
i
dat
ionofcooper
ati
vesdul
y
appr
ovedbyt
heGener
alAssembl
yofeachoft
he
const
it
uentcooper
ati
vesatsepar
ate
Gener
al/
Repr
esent
ati
veAssembl
yMeet
ings.

(
47)Pr
imar
yCooper
ati
ve-shal
lref
ert
oa
cooper
ati
ve,
themember
sofwhi
char
enat
ural
per
sons.

(
48)Recei
ver-shal
lref
ert
oanyper
sonof
r
ecogni
zedcompet
enceappoi
ntedbyt
he
Aut
hor
it
yempower
edt
otakechar
geofal
lthe
asset
sandl
i
abi
l
iti
esoft
hecooper
ati
veadmi
nist
er
t
hesamef
ort
hebenef
itofi
tscr
edi
tor
sand
ex
erci
sesuchot
herpower
saspr
ovi
dedundert
he
Rev
isedRul
esofCour
t.

(
49)Regi
str
ati
on-shal
lref
ert
otheoper
ati
veact
gai
ningj
uri
dical
per
sonal
i
tyt
oapr
oposed
cooper
ati
veasev
idencedbyaCer
ti
fi
cat
eof
Regi
str
ati
on.

(
50)Repr
esent
ati
veAssembl
y-shal
lref
ert
othe
f
ull
member
shi
poft
hebodyofr
epr
esent
ati
ves
el
ect
edbyeachoft
hesect
ors,
chapt
ersor
di
str
ict
soft
hecooper
ati
vedul
yassembl
edf
ort
he
pur
poseofex
erci
singsuchpower
slawf
ull
y
del
egat
edunt
othem byt
hegener
alassembl
yin
accor
dancewi
thi
tsBy
-l
aws.

(
51)Repor
ts-shal
lref
ert
oanydocument
sor
st
atementr
equi
redf
rom cooper
ati
vest
obe
submi
tt
edt
otheAut
hor
it
yonar
egul
arbasi
s.

(
52)Repr
esent
ati
ve/
Del
egat
e-shal
lref
ert
oa
memberdul
yel
ect
eddur
ingt
hesect
or,
chapt
eror
di
str
ictmeet
ingswhoshal
lrepr
esenthi
s/her
sect
or,
chapt
erordi
str
ictt
other
epr
esent
ati
ve
assembl
ymeet
ing.

(
53)Rev
olv
ingCapi
tal
-shal
lref
ert
otheamount
av
ail
abl
eoutoft
hedef
err
edpay
mentoft
he
pat
ronager
efundandi
nter
estonshar
ecapi
tal
of
t
hemember
sorbyaut
hor
izeddeduct
ionofa
per
cent
agef
rom t
hepr
oductsol
dorperuni
tof
pr
oducthandl
edbyt
hecooper
ati
ve.TheBoar
dof
Di
rect
orshal
li
ssuer
evol
vi
ngcapi
tal
cer
ti
fi
cat
es
wi
thser
ial
number
,name,
amount
,andr
ateof
i
nter
estt
obepai
dandshal
ldi
sti
nct
lysetf
ort
hthe
t
imeofr
eti
rementofsuchcer
ti
fi
cat
esandt
he
amount
stober
etur
ned.

(
54)Ri
skAsset-shal
lref
ert
othet
otal
asset
s
mi
nuscashonhand,
evi
dencesofi
ndebt
edness,
l
oanst
otheex
tentcov
eredbyhol
d-out
sor
assi
gnment
sofdeposi
ts,
landsownedusedf
or
oper
ati
ons,
bui
l
dingsandl
andi
mpr
ovement
snet
ofdepr
eci
ati
on,
fur
nit
ureandf
ixt
uresand
equi
pmentnetofdepr
eci
ati
on,
real
est
ate
mor
tgagel
oanandot
hernon-
ri
ski
temsast
he
Aut
hor
it
ymay
,fr
om t
imet
oti
me,
aut
hor
izedt
obe
deduct
edf
rom t
otal
asset
s.

(
55)Sanct
ions-shal
lref
ert
othepenal
ti
es
pr
ovi
dedf
ori
nthecooper
ati
veby
laws,
theser
ules,
andot
heradmi
nist
rat
ivei
ssuances,
theCodeand
ot
herr
elat
edl
aws

(
56)Secondar
yCooper
ati
ve-shal
lref
ert
oa
cooper
ati
vet
hemember
sofwhi
char
epr
imar
ies.

(
57)Sect
or,
Chapt
erorDi
str
ict-shal
lref
ert
oa
di
vi
sionofacooper
ati
ve,
whi
chmaybebyr
eason
ofgeogr
aphi
cal
locat
ion,
scopeofoper
ati
on,
cl
ust
er,
wor
kshi
ftorsuchot
hersi
mil
arsub-
gr
oupi
ngs.

(
58)Set
tl
ement-shal
lref
ert
oanycompr
omi
seor
ar
rangement
sbet
weent
hedi
sput
ant
stoset
tl
ethe
mat
ter
sindi
sput
eandt
husdi
sposeof
cont
rov
ersy
.Thet
erm maybeusedi
nthesense
of"
pay
ment
"or"
adj
ust
ment
"dependi
ngupont
he
ci
rcumst
ancesunderwhi
ch,
andt
heconnect
ioni
n
whi
ch,
useoft
het
ermi
smade.

(
59)Sequent
ial
Elect
ionof
Repr
esent
ati
ve/
Del
egat
e-shal
lref
ert
othe
el
ect
ionoft
her
epr
esent
ati
vesdur
ingt
he
meet
ingshel
d,oneaf
tert
heot
her
,indi
ff
erent
day
sand/
oratv
ari
ousv
enues,
bysev
eral
sect
ors,
chapt
ersordi
str
ict
sofacooper
ati
vef
ort
he
pur
poseofel
ect
ingt
hei
rrespect
ive
Repr
esent
ati
ves/
Del
egat
est
other
epr
esent
ati
ve
assembl
ymeet
ing.

(
60)Shar
eCapi
tal
-shal
lref
ert
othemoneypai
dor
r
equi
redt
obepai
dbyt
hemember
sfort
he
conductoft
heoper
ati
onsoft
hecooper
ati
ve.

(
61)Si
mul
taneousEl
ect
ionof
Repr
esent
ati
ves/
Del
egat
es-shal
lref
ert
othe
el
ect
ionoft
her
epr
esent
ati
vesdur
ingt
he
meet
ingshel
d,ont
hesamedayandatv
ari
ous
v
enues,
bysev
eral
sect
ors,
chapt
ers,
ordi
str
ict
sof
acooper
ati
vef
ort
hepur
poseofel
ect
ingt
hei
r
r
espect
iveRepr
esent
ati
ves/
Del
egat
est
othe
r
epr
esent
ati
veassembl
ymeet
ing.

(
62)Submi
ssi
onAgr
eement-shal
lref
ert
othe
wr
it
tenagr
eementsi
gnedbyt
hedi
sput
ingpar
ti
es
t
osubmi
tthedi
sput
etov
olunt
aryar
bit
rat
ion.

(
63)Subsi
diar
yCooper
ati
ve-shal
lref
ert
oany
or
gani
zat
ional
lormi
nor
it
yofwhosemember
shi
p
orshar
ehol
der
scomef
rom acooper
ati
vecal
l
eda
par
entcooper
ati
ve,
organi
zedf
oranyot
her
pur
posedi
ff
erentf
rom t
hatof
,andr
ecei
ves
t
echni
cal
,manager
ial
,andf
inanci
alassi
stance
f
rom t
hesai
dpar
entcooper
ati
ve.

(
64)Ter
ti
aryCooper
ati
ve-shal
lref
ert
oa
cooper
ati
ve,
themember
sofwhi
char
esecondar
y
cooper
ati
ve.

(
65)Tot
alAv
erageShar
eMont
h-shal
lref
ert
othe
sum t
otal
oft
heav
erageshar
emont
h,whi
chi
s
det
ermi
nedbyaddi
ngt
hemont
hlyendi
ng
bal
ancesoft
hemember
'sshar
ecapi
tal
and
di
vi
dingt
hesum byt
wel
ve(
12)mont
hs.
1av
vphi
1

(
66)Unpai
dSubscr
ipt
ion-shal
lref
ert
othe
subscr
ibedshar
ecapi
tal
,whi
chi
snoty
etf
ull
y
pai
dbyamember
.

(
67)Vol
unt
aryAr
bit
rat
ion-shal
lref
ert
oadi
sput
e
r
esol
uti
onpr
ocesswher
einanyi
ntr
a/i
nter
cooper
ati
vedi
sput
eisset
tl
edbyav
olunt
ary
ar
bit
rat
or/
schosenbyt
hedi
sput
ingpar
ti
esf
rom a
l
i
stofqual
i
fiedandaccr
edi
tedar
bit
rat
ors,
who
shal
ldeci
deont
hemer
it
soft
hecasebyr
ender
ing
anawar
d.

(
68)Vol
unt
aryAr
bit
rat
or/
Arbi
tr
ator
s-shal
lref
ert
o
anyaut
hor
izedempl
oyeeoft
heAut
hor
it
yoran
accr
edi
tedpr
ivat
eindi
vi
dual
chosenbyt
hepar
ti
es
t
ohear
,deci
de,
andr
enderanawar
dinadi
sput
e.

(
69)Vol
unt
aryDi
ssol
uti
on-shal
lref
ert
othe
t
ermi
nat
ionoft
hej
uri
dical
per
sonal
i
tyoft
he
cooper
ati
veati
tsowni
nit
iat
iveori
nst
anceaf
ter
compl
yi
ngwi
tht
her
equi
rement
ssetf
ort
hint
he
Codeandt
heser
ules.
RULE1
REPRESENTTATI
VEASSEMBLY

Sect
ion1.Legal
Basi
s.TheLegal
basi
sfort
hisr
ule
i
sAr
t.5(
2),
(10)oft
heCode,
quot
edasf
oll
ows:

"
(2)Gener
alAssembl
yshal
lmeant
hef
ull
member
shi
poft
hecooper
ati
vedul
yassembl
ed
f
ort
hepur
poseofex
erci
singal
lri
ght
sand
per
for
mingal
ltheobl
i
gat
ionsper
tai
ningt
o
cooper
ati
ves,
aspr
ovi
dedbyt
hisCode,
itsar
ti
cles
ofcooper
ati
onandby
-l
aws.Pr
ovi
ded;
thatf
or
cooper
ati
veswi
thnumer
ousanddi
sper
sed
member
shi
p,t
hedi
str
ictoft
hecooper
ati
veandi
n
accor
dancewi
tht
her
ulesandr
egul
ati
onsoft
he
Cooper
ati
veDev
elopmentAut
hor
it
y."

"
(10)Repr
esent
ati
veAssembl
yshal
lref
ert
othe
f
ull
member
shi
poft
hebodyofr
epr
esent
ati
ve
el
ect
edbyeachoft
hesect
or,
chapt
er,
ordi
str
ict
oft
hecooper
ati
vedul
yassembl
edf
ort
hepur
pose
ofex
erci
singsuchpower
slawf
ull
ydel
egat
edunt
o
t
hem byt
hegener
alassembl
yinaccor
dancewi
th
i
tsby
-l
aws"

Sect
ion2.Appl
i
cabi
l
ity-Thi
srul
eshal
lappl
yto
cooper
ati
ves,
whi
chbyr
easonofhav
ing
numer
ousanddi
sper
sedmember
shi
p,t
he
conductoft
hegener
alassembl
ymeet
ings
becomesex
tremel
ydi
ff
icul
t;Pr
ovi
ded,
Thatt
he
adopt
ionofr
epr
esent
ati
veassembl
yshal
lbe
st
ipul
atedi
nthecooper
ati
veBy
-l
aws,
whi
chshal
l
speci
fyt
hef
oll
owi
ngmat
ter
s:

a.Thebasi
sfordi
vi
dingt
hecooper
ati
vei
nto
sect
or,
chapt
er,
ordi
str
ict
;

b.Themi
nimum numberofr
egul
armember
sto
composeeachsect
or,
chapt
er,
ordi
str
ict
;

c.Thequor
um r
equi
redi
nthesect
or,
chapt
er,
or
di
str
ictassembl
ymeet
ing;
d.ThenumberofRepr
esent
ati
ve/
sorDel
egat
e/s
t
obeel
ect
edt
orepr
esentt
het
otal
numberoft
he
r
egul
armember
sint
hesect
or,
chapt
er,
ordi
str
ict
;

e.Thet
erm ofof
fi
ceoft
heRepr
esent
ati
veor
Del
egat
e;

f
.Thequal
i
ficat
ionanddi
squal
i
ficat
ionoft
he
Repr
esent
ati
veorDel
egat
e;

g.Thepower
s,f
unct
ionandr
esponsi
bil
i
tiesoft
he
Repr
esent
ati
veorDel
egat
e;

h.Theel
ect
ionoft
hesect
or,
chapt
er,
ordi
str
ict
Repr
esent
ati
veorDel
egat
e;

i
.Vacancyi
nthesect
or,
chapt
er,
ordi
str
ict
Repr
esent
ati
veorDel
egat
e;

j
.Ther
esi
gnat
ionorr
emov
alaswel
last
heappeal
oft
hesect
or,
chapt
er,
ordi
str
ictRepr
esent
ati
veor
Del
egat
e

k.Thesect
or,
chapt
er,
ordi
str
ictassembl
y
meet
ings;

l
.Thequor
um r
equi
redi
nther
epr
esent
ati
ve
assembl
ymeet
ing;

m.Thepower
soft
heRepr
esent
ati
veAssembl
y;

n.Theconductoft
her
epr
esent
ati
vemeet
ing;

o.Theel
i
gibi
l
ityoft
heRepr
esent
ati
ve/
Del
egat
eto
beel
ect
edasOf
fi
cer
soft
hecooper
ati
ve;
and

p.Ot
hermat
ter
srel
evantt
otheconductor
r
epr
esent
ati
veassembl
ymeet
ing.

Sect
ion3.Di
vi
sionofCooper
ati
vei
ntoSect
or,
Chapt
er,
orDi
str
ict
.TheNumberoft
hemember
s
oft
hecooper
ati
ve,
whi
chshal
lbeatl
eastOne
Thousand(
1,000)andt
hegeogr
aphi
cal
locat
ion,
scopeofoper
ati
oncl
ust
er,
wor
kshi
ft
,orot
her
si
mil
arcondi
ti
onsshal
lbet
hebasi
sindi
vi
dingt
he
cooper
ati
vei
ntosect
or,
chapt
er,
ordi
str
ict
.

Sect
ion4.Composi
ti
onoft
heRegul
arMember
sof
EachSect
or,
Chapt
er,
orDi
str
ict
.TheBy
lawsshal
l
pr
ovi
def
ort
henumberoft
her
egul
armember
sto
composeeachsect
or,
chapt
er,
ordi
str
ict
,whi
ch
shal
lnotbel
esst
hanonehundr
ed(
100)member
s.

Sect
ion5.Quor
um Requi
rementf
orSect
or,
Chapt
er,
orDi
str
ict
.Atl
eastt
went
y-f
iveper
cent
um (
25%)oft
hemember
sent
it
ledt
ovot
ein
eachsect
or,
chapt
er,
ordi
str
ictshal
lconst
it
utea
quor
um.

Sect
ion6.NumberofSect
or,
Chapt
er,
orDi
str
ict
Repr
esent
ati
ve.Thenumberofsect
or,
chapt
er,
or
di
str
ictRepr
esent
ati
veorDel
egat
etobeel
ect
ed
shal
lbepr
ovi
dedi
ntheBy
-l
awsbuti
nnocase,
shal
lbel
esst
hant
enper
cent(
10%)oft
het
otal
numberoft
her
egul
armember
sent
it
ledt
ovot
eof
t
hesect
or,
chapt
er,
ordi
str
ict
.

Sect
ion7.Ter
m ofOf
fi
ceoft
heSect
or,
Chapt
er,
or
Di
str
ictRepr
esent
ati
ves.Thet
erm ofof
fi
ceoft
he
Repr
esent
ati
veorDel
egat
eshal
lbepr
ovi
dedi
n
t
heBy
-l
awsbutnotex
ceedt
wo(
2)y
ear
s,whi
ch
shal
lcommenceont
hef
ir
str
egul
arr
epr
esent
ati
ve
assembl
ymeet
ing.

Sect
ion8.Qual
i
ficat
ionsandDi
squal
i
ficat
ionsof
t
heRepr
esent
ati
veorDel
egat
e.Thesect
or,
chapt
er,
ordi
str
ictr
epr
esent
ati
veordel
egat
eshal
l
possessal
lthequal
i
ficat
ionsandnoneoft
he
di
squal
i
ficat
ionsaspr
ovi
dedi
nthecooper
ati
veBy
-
laws.

Sect
ion9.Power
s,Funct
ions,
andResponsi
bil
i
ties
oft
heRepr
esent
ati
veorDel
egat
e.The
Repr
esent
ati
veorDel
egat
eshal
lhav
ethe
f
oll
owi
ngpower
s,f
unct
ions,
andr
esponsi
bil
i
ties:

(
1)Tor
epr
esentt
hesect
or,
chapt
er,
ordi
str
icti
n
t
heRepr
esent
ati
veAssembl
yMeet
ing;

(
2)Todeci
dedf
orandi
nbehal
foft
hesect
or,
chapt
er,
ordi
str
icthe/
sher
epr
esent
sint
he
Repr
esent
ati
veAssembl
yMeet
ing;
and

(
3)Toi
nfor
m hi
s/hersect
or,
chapt
er,
ordi
str
ictof
whatt
ranspi
reddur
ingt
heRepr
esent
ati
ve
Assembl
yMeet
ing.

Sect
ion10.El
ect
ionofSect
or,
Chapt
er,
orDi
str
ict
Repr
esent
ati
veorDel
egat
e.Eachsect
or,
chapt
er,
ordi
str
ictdur
ingt
heGener
alAssembl
ymeet
ing
appr
ovi
ngt
headopt
ionoft
heRepr
esent
ati
ve
Assembl
yshal
lel
ecti
tsLocal
elect
ionCommi
tt
ee
t
hatwi
l
lconductt
heel
ect
ionofsect
or,
chapt
er,
or
di
str
ictRepr
esent
ati
ve/
Del
egat
etobehel
dno
l
atert
hansi
xty(
60)day
sbef
oret
heschedul
edat
e
oft
her
egul
arr
epr
esent
ati
veassembl
ymeet
ingas
pr
ovi
dedf
ori
ntheBy
-l
aws.

TheBoar
dofDi
rect
orsshal
ldi
rectsect
or,
chapt
er,
ordi
str
ictLocal
Elect
ionCommi
tt
eet
oconduct
t
hesect
or,
chapt
er,
ordi
str
ictassembl
ymeet
ing
t
oel
ecti
tsRepr
esent
ati
ve/
sorDel
egat
e/s,
whi
ch
maybehel
dei
thersi
mul
taneousl
yorsequent
ial
l
y.

I
ncaset
hesect
or,
chapt
er,
ordi
str
ictf
ail
edt
o
el
ecti
tsRepr
esent
ati
ve/
sorDel
egat
e/s,
ther
ight
t
osendi
tsRepr
esent
ati
ve/
sorDel
egat
e/sont
hat
par
ti
cul
arr
epr
esent
ati
veorassembl
ymeet
ing
shal
lbedeemedandwai
ved.

Sect
ion11.Vacancyi
ntheSect
or,
Chapt
er,
or
Di
str
ictRepr
esent
ati
veorDel
egat
e.Anyv
acancy
shal
lbef
il
ledupi
naccor
dancewi
tht
hepr
ovi
sions
oft
hecooper
ati
veBy
-l
aws.TheDel
egat
eor
Repr
esent
ati
veel
ect
ed/
appoi
ntedt
ofi
l
lav
acancy
shal
lser
veonl
ytheunex
pir
edt
erm ofhi
s/her
pr
edecessor
.

Sect
ion12.Resi
gnat
ionandRemov
alofSect
or,
Chapt
er,
orDi
str
ictRepr
esent
ati
veorDel
egat
e.
Thesect
or,
chapt
er,
ordi
str
ictRepr
esent
ati
veor
Del
egat
emayr
esi
gn,
forv
ali
dreason,
as
Repr
esent
ati
veorDel
egat
eofhi
ssect
or,
chapt
er,
ordi
str
ict
.Upont
her
ecei
ptoft
henot
ice,
the
Boar
dofDi
rect
orsshal
lactont
her
esi
gnat
ion
l
ett
erwi
thi
nsi
xty(
60)day
sot
her
wise,
the
r
esi
gnat
ionshal
lbedeemedappr
oved.Anysect
or,
chapt
er,
ordi
str
ictRepr
esent
ati
ve/
Del
egat
emay
ber
emov
edbyav
oteoft
hree-
four
ths(
3/4)ofal
l
t
hemember
swi
thv
oti
ngr
ight
spr
esentand
const
it
uti
ngaquor
um atasect
or,
chapt
er,
or
di
str
ictmeet
ingcal
l
edf
ort
hepur
poseont
he
f
oll
owi
nggr
ounds:

1.Fai
l
uret
oat
tendt
hei
mmedi
atepr
ecedi
ng
r
epr
esent
ati
veassembl
ymeet
ingf
orunj
ust
if
iabl
e
r
eason;

2.Non-
per
for
manceofanyf
unct
ionsand
r
esponsi
bil
i
tiesst
atedi
ntheBy
-l
aws;

3.Anyv
iol
ati
onoft
hepr
ovi
sionsoft
heCode,
the
By
-l
awsoft
hecooper
ati
veandot
heri
ssuancesof
t
heAut
hor
it
y;and
4.Anyact
soromi
ssi
onsi
nimi
cal
orpr
ejudi
cial
to
t
hei
nter
estoft
hecooper
ati
ve.

Dur
ingt
hesamemeet
ing,
thesect
or,
chapt
er,
or
di
str
ictshal
lfi
l
lthev
acancy
.Incaset
her
emov
ed
Repr
esent
ati
veorDel
egat
eisani
ncumbent
Of
fi
ceroft
heCooper
ati
ve,
his/
herposi
ti
onshal
l
bedecl
aredv
acantandshal
lbef
il
ledupi
n
accor
dancewi
tht
heRul
eofSuccessi
onas
pr
ovi
dedf
ori
ntheBy
-l
awsoft
heCooper
ati
ve.
Unl
essot
her
wisepr
ovi
dedf
ori
nthei
rBy
-l
aws,
suchsuccessorshal
lnotnecessar
il
yassumet
he
posi
ti
onofhi
s/herpr
edecessor
.Howev
er,
int
he
caseoft
hemember
shi
pint
hecommi
tt
ee,
the
v
acat
edmember
shi
pshal
lbef
il
ledupbyt
he
Boar
dofDi
rect
orsoft
heCooper
ati
vef
rom among
t
heRepr
esent
ati
ves/
Del
egat
es.

Sect
ion13.Sect
or,
Chapt
er,
orDi
str
ictAssembl
y
Meet
ing.Thesect
or,
chapt
er,
ordi
str
ictmeet
ings
oft
hecooper
ati
veadopt
ingt
hisschemeshal
lbe
asf
oll
ows:
a.Regul
ar

b.Speci
al

Ther
egul
armeet
ingshal
lbeconduct
edt
oel
ect
t
hesect
or,
chapt
er,
ordi
str
ictRepr
esent
ati
vesor
Del
egat
esandf
orsuchot
herpur
posesasmay
be
pr
ovi
dedi
ntheBy
laws.

Thespeci
almeet
ingshal
lbeconduct
edt
orepor
t
whathast
ranspi
reddur
ingt
her
epr
esent
ati
ve
assembl
ymeet
ingandf
orsuchot
herpur
posesas
may
bepr
ovi
dedi
ntheBy
-l
aws.

I
nei
thercase,
theconductoft
hemeet
ingshal
lbe
cal
l
edandpr
esi
dedbyt
heLeadRepr
esent
ati
veof
Del
egat
e.SuchLeadRepr
esent
ati
veorDel
egat
e
shal
lbeRepr
esent
ati
veorDel
egat
ewhoobt
ained
t
hehi
ghestnumberofv
otesdur
ingt
hel
astsect
or,
chapt
er,
ordi
str
ictel
ect
ion.
Sect
ion14.Quor
um Requi
rement
sfor
Repr
esent
ati
veAssembl
y.Atl
eastt
went
y-f
iveper
cent
um (
25%)ofal
lRepr
esent
ati
ves/
Del
egat
es
shal
lconst
it
uteaquor
um f
ort
her
epr
esent
ati
ve
assembl
ymeet
ing.

Sect
ion15.Poweroft
heRepr
esent
ati
ve
Assembl
y.TheRepr
esent
ati
veAssembl
yshal
l
ex
erci
set
hepower
saspr
ovi
dedf
ori
ntheBy
-l
aws.

Sect
ion16.ConductofRepr
esent
ati
veAssembl
y
Meet
ing.Repr
esent
ati
veAssembl
yMeet
ingshal
l
beconduct
edi
naccor
dancewi
tht
hepr
ovi
sionof
t
hecooper
ati
veBy
-l
aws.I
ntheabsencet
her
eof
,
t
hef
oll
owi
ngshal
lbeobser
ved:

1.Ther
epr
esent
ati
veassembl
ymeet
ingshal
lbe
hel
dinaccor
dancewi
tht
heor
derofbusi
ness
addr
essi
ngt
heagendapr
epar
edbyt
heBoar
dof
Di
rect
ors;
2.Thechai
rper
sonori
nhi
s/herabsence,
theVi
ce
Chai
rper
sonoranymemberoft
heBoar
dof
Di
rect
orsshal
lpr
esi
deov
ert
hemeet
ing;

3.TheEl
ect
ionCommi
tt
eeshal
lsuper
viset
he
el
ect
ionoft
heBoar
dofDi
rect
orsandcommi
tt
ee
member
soft
hecooper
ati
ve;
and

4.EachRepr
esent
ati
veorDel
egat
eshal
lbe
ent
it
ledt
oone(
1)v
ote.TheVot
esoft
hesect
or,
chapt
er,
ordi
str
ictRepr
esent
ati
vesorDel
egat
es
shal
lbeconsi
der
edt
hev
otesofal
lthemember
s
oft
hesect
or,
chapt
er,
ordi
str
ictt
heyr
epr
esent
.

Thedeci
sionoft
heRepr
esent
ati
veAssembl
yshal
l
beconsi
der
edav
ali
dcooper
ati
veact
.

Sect
ion17.El
i
gibi
l
ityoft
heRepr
esent
ati
veor
Del
egat
etobeel
ect
edasOf
fi
cer
soft
he
Cooper
ati
ve.TheOf
fi
cer
soft
hecooper
ati
veshal
l
comef
rom t
heRepr
esent
ati
ve/
sorDel
egat
e/sof
t
hesect
or,
chapt
er,
ordi
str
ict
.TheseOf
fi
cershal
l
beel
ect
eddur
ingt
heRepr
esent
ati
veAssembl
y
Meet
ingf
orat
ermf
ixedi
ntheBy
-l
awsbutnot
ex
ceedi
ngat
erm oft
wo(
2)y
ear
sandshal
lhol
d
of
fi
ceunt
ilt
hei
rsuccessorar
edul
yel
ect
edand
qual
i
fied,
orunt
ildul
yremov
edf
orcause.

Thet
erm ofof
fi
ceoft
heOf
fi
ceroft
heCooper
ati
ve
att
het
imeofadopt
ionoft
heRepr
esent
ati
ve
Assembl
yshal
lex
pir
eont
hef
ir
str
epr
esent
ati
ve
assembl
ymeet
ing.

RULE2
SUBSI
DIARYCOOPERATI
VE

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.5(
16)oft
heCode,
quot
edasf
oll
ows;

"
Art
.5(
16)Subsi
diar
yCooper
ati
ver
efer
stoany
or
gani
zat
ional
lormaj
ori
tyofwhosemember
shi
p
orshar
ehol
der
scomef
rom acooper
ati
ve,
or
gani
zedf
oranyot
herpur
posedi
ff
erentf
rom
t
hatof
,andr
ecei
vest
echni
cal
,manager
ial
and
f
inanci
alassi
stancef
rom,
acooper
ati
ve,
in
accor
dancewi
tht
her
ulesandr
egul
ati
onsoft
he
Aut
hor
it
y."

Sect
ion2.Gener
alRequi
rement
s.Apar
ent
cooper
ati
vemayor
gani
zeasubsi
diar
y
cooper
ati
vepr
ovi
dedt
hat
:

1.I
thasbeeni
noper
ati
onf
oratl
eastt
wo(
2)
y
ear
sandhasi
ncur
rednol
ossesf
ort
het
wo(
2)
pr
ecedi
ngy
ear
sofoper
ati
on.

2.I
thasanetwor
thofatl
eastTenMi
l
li
onPesos
(
Php10,
000,
000.
00)asshowni
nit
slat
estAudi
ted
Fi
nanci
alSt
atement
s.

3.Al
lormaj
ori
tyoft
heMember
soft
hePar
ent
Cooper
ati
vear
ewi
l
li
ngt
obecomemember
sof
t
heSubsi
diar
yCooper
ati
ve.

4.Thebusi
nessoft
heSubsi
diar
yCooper
ati
ve
shal
lbedi
ff
erentf
rom t
hatoft
hePar
ent
Cooper
ati
ve.

5.Thecr
eat
ionofaSubsi
diar
yCooper
ati
veand
t
het
echni
cal
,manager
ial
andf
inanci
alassi
stance
t
obepr
ovi
dedshal
lbeappr
ovedbyatl
eastt
hree-
f
our
ths(
3/4)v
oteofmember
sofPar
ent
s
Cooper
ati
vewi
thv
oti
ngr
ight
spr
esentand
const
it
uti
ngaquor
um i
nar
egul
arspeci
algener
al
assembl
y/r
epr
esent
ati
veassembl
ymeet
ingcal
l
ed
f
ort
hepur
pose.

Sect
ion3.Document
aryRequi
rement
sfor
Regi
str
ati
onofSubsi
diar
yCooper
ati
ves.I
n
addi
ti
ont
other
equi
rement
sforr
egi
str
ati
onofa
newcooper
ati
ve,
anappl
i
cantSubsi
diar
y
Cooper
ati
veshal
lsubmi
tar
esol
uti
onf
rom t
he
Par
entCooper
ati
veappr
ovi
ngt
hecr
eat
ionofsuch
Subsi
diar
yCooper
ati
veandaccept
ingt
he
r
esponsi
bil
i
tiest
her
ewi
th.

Sect
ion4.Condi
ti
ons.Thef
oll
owi
ngcondi
ti
ons
shal
lbeconsi
der
edi
nther
egi
str
ati
onand
oper
ati
onofSubsi
diar
yCooper
ati
ve:

1.Onl
yassi
stancei
nthef
orm oft
echni
cal
,
manager
ial
andf
inanci
alassi
stanceshal
lbe
pr
ovi
dedbyt
hePar
entCooper
ati
vet
oit
s
Subsi
diar
yCooper
ati
ve;

2.Di
rect
orsorOf
fi
cer
soft
hePar
entCooper
ati
ve
cannotbeel
ect
edorappoi
ntedasOf
fi
cer
soft
he
Subsi
diar
yCooper
ati
ve.Howev
er,
thePar
ent
Cooper
ati
vet
hroughi
tsGener
alAssembl
ymay
appoi
nti
tsRepr
esent
ati
vet
oactasEx
-Of
fi
cio
memberoft
heBoar
dofDi
rect
orsoft
he
Subsi
diar
yCooper
ati
ve;

3.TheManagementSt
affoft
hePar
ent
Cooper
ati
vecannotbeatt
het
imet
he
ManagementSt
affoft
heSubsi
diar
yCooper
ati
ve;

4.Tr
ansf
erofshar
esofmember
sandot
her
r
elat
edi
nter
est
sfr
om Par
entCooper
ati
vet
o
Subsi
diar
yCooper
ati
veandv
icev
ersaar
e
pr
ohi
bit
ed;
and

5.I
ncaseofdi
ssol
uti
onoft
hePar
entCooper
ati
ve,
t
heSubsi
diar
yCooper
ati
vecannotbear
eci
pient
ofanygr
ant
,donat
ionsorot
heri
nter
est
sfr
om t
he
Par
entCooper
ati
veandv
icev
ersa.

Sect
ion5.NameofSubsi
diar
yCooper
ati
ve.The
subsi
diar
yCooper
ati
veshal
li
ncl
udei
nit
sname
t
hewor
d"Subsi
diar
yCooper
ati
veof(
Nameof
Par
entCooper
ati
ve)
".

Sect
ion6.Assi
stancef
orPar
entCooper
ati
ve.The
f
inanci
alassi
stancet
obepr
ovi
dedshal
lnot
ex
ceedt
en(
10%)oft
henetwor
thoft
hePar
ent
Cooper
ati
ve.Thet
echni
cal
andmanager
ial
assi
stanceshal
ldependupont
heneedsoft
he
Subsi
diar
yCooper
ati
veandcapaci
tyoft
hePar
ent
Cooper
ati
ve,
whi
chshal
lbet
akenupi
nthebook
atact
ual
cost
.

Thet
ermsandcondi
ti
onsoft
hef
inanci
al
assi
stancepr
ovi
dedbyt
hePar
entCooper
ati
vet
o
t
heSubsi
diar
yCooper
ati
veshal
lbegov
ernedbya
Memor
andum ofAgr
eementent
eredi
ntobybot
h
par
ti
es.

Sect
ion7.Ef
fectofDi
ssol
uti
onofPar
entor
Subsi
diar
yCooper
ati
ve.Thedi
ssol
uti
onofei
ther
cooper
ati
veshal
lnotaf
fectt
heex
ist
enceoft
he
ot
her
.

RULE3
MULTI
-PURPOSECOOPERATI
VE

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
ti
cle10oft
heCodequot
edasf
oll
ows:

"
Art
.10.Or
gani
zi
ngaPr
imar
yCooper
ati
ve.-Any
newl
yor
gani
zedpr
imar
ycooper
ati
vemaybe
r
egi
ster
edasmul
ti
-pur
posecooper
ati
veonl
yaf
ter
compl
i
ancewi
tht
hemi
nimum r
equi
rement
sfor
mul
ti
-pur
posecooper
ati
vest
obesetbyt
he
Aut
hor
it
y.Asi
ngl
e-pur
posecooper
ati
vemay
t
ransf
ormi
ntoamul
ti
-pur
poseormaycr
eat
e
subsi
diar
iesonl
yaf
teratl
eastt
wo(
2)y
ear
sof
oper
ati
on.
"

Sect
ion2.Cov
erage.Thi
sRul
eshal
lcov
er(
a)al
l
t
ypesofnewl
yor
gani
zedpr
imar
ycooper
ati
vewi
th
combi
nedt
wo(
2)ormor
ebusi
nessact
ivi
ti
esof
di
ff
erentt
ypesofcooper
ati
veaspr
ovi
dedf
ori
n
Ar
t.23oft
heCode,
(b)asi
ngl
e-pur
pose
cooper
ati
vedesi
ri
ngt
otr
ansf
ormi
tsel
fint
oa
mul
ti
-pur
posecooper
ati
veaf
teratl
eastt
wo(
2)
y
ear
sofoper
ati
on.

Sect
ion3.Mi
nimum Capi
tal
i
zat
ionRequi
rement
s.
Onl
ythosecooper
ati
vewi
thami
nimum pai
d-up
capi
tal
ofOneHundr
edThousandPesos
(
P100,
00.
00)orasr
equi
redi
nthef
easi
bil
i
tyst
udy
whi
chev
eri
shi
ghershal
lqual
i
fiedt
oregi
sterasa
mul
ti
-pur
posecooper
ati
veorcant
ransf
ormi
ntoa
mul
ti
-pur
posecooper
ati
ve.

Sect
ion4.Requi
rement
sforr
egi
str
ati
on.The
f
oll
owi
ngdocument
sshal
lbesubmi
tt
edt
othe
Aut
hor
it
y:

(
1)Foranewl
yor
gani
zedMul
ti
-Pur
pose
Cooper
ati
ve:

1.NameVer
if
icat
ionSl
i
p;

2.Ar
ti
clesofCooper
ati
veandBy
-Laws;

3.Tr
easur
er'
sAf
fi
dav
it;

4.Sur
etyBondofAccount
abl
eOf
fi
cer
s;

5.Cer
ti
fi
cat
esofPr
e-Member
shi
pEducat
ion
Semi
nar(
PMES)
;

6.Economi
cSur
vey
;

7.Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;

8.Fav
orabl
eEndor
sementf
rom Ot
hergov
ernment
Agenci
es,
ifappl
i
cabl
e;

9.Det
ail
edFeasi
bil
i
tySt
udyi
ndi
cat
ingv
iabi
l
ityof
t
hepr
oposedbusi
nessact
ivi
ty;

10.Under
taki
ngt
ocompl
ywi
tht
heaudi
ti
ngand
account
ingst
andar
dspr
escr
ibedbyt
heAut
hor
it
y;
and

11.Regi
str
ati
onf
ee.

(
2)Forex
ist
ingcooper
ati
vesdesi
ri
ngt
obe
t
ransf
ormedi
ntoaMul
ti
-Pur
poseCooper
ati
ve:

1.NameVer
if
icat
ionSl
i
p,i
ncaseofchangeof
name;

2.AmendedAr
ti
clesofCooper
ati
veandBy
-Laws;
3.AResol
uti
oncer
ti
fi
edbyt
hecooper
ati
ve'
s
Secr
etar
yandbyt
hemaj
ori
tyoft
heBoar
dof
Di
rect
orsst
ati
ngt
hef
actt
hatsai
damendment
s
hav
ebeendul
yappr
ovedbyatl
eastt
wo-
thi
rds
(
2/3)v
oteofal
lthemember
swi
thv
oti
ngr
ight
s;

4.Sur
etyBondofAccount
abl
eOf
fi
cer
s;

5.Audi
tedFi
nanci
alSt
atementshowi
ngpr
ofi
tabl
e
oper
ati
onsf
ort
hepastt
wo(
2)y
ear
s;

6.Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redapr
iorr
ightt
o
t
heuseoft
hepr
oposedname;

7.Fav
orabl
eEndor
sementf
rom Ot
herGov
ernment
Agenci
es,
ifappl
i
cabl
e;

8.Det
ail
edFeasi
bil
i
tySt
udyi
ndi
cat
ingv
iabi
l
ityof
t
hepr
oposedbusi
nessact
ivi
ti
es;
9.Cer
ti
fi
cat
ethatt
hecooper
ati
vehascompl
i
ed
wi
tht
heaudi
ti
ngandaccount
ingst
andar
ds
pr
escr
ibedbyt
heAut
hor
it
y;

10.Pr
oofofbusi
nesst
rackr
ecor
dsoft
he
cooper
ati
ve;
and

11.AmendmentFee.

Sect
ion5.BookofAccount
s.Thenewandex
ist
ing
cooper
ati
vest
ransf
ormedi
ntoaMul
ti
-Pur
pose
Cooper
ati
vear
erequi
redt
omai
ntai
nsepar
ate
BookofAccount
sforeachbusi
nessact
ivi
ty.

RULE4
DI
VISI
ONOFCOOPERATI
VES

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.20oft
heCode,
quot
edasf
oll
ows:
"
Art
.20.Di
vi
sionofCooper
ati
ves.-Anyr
egi
ster
ed
cooper
ati
ve,
maybyar
esol
uti
onappr
ovedbya
v
oteoft
hree-
four
ths(
3/4)ofal
lthemember
swi
th
v
oti
ngr
ight
s,pr
esentandconst
it
uti
ngaquor
um,
r
esol
vet
odi
vi
dei
tsel
fint
otwo(
2)ormor
e
cooper
ati
ves.Thepr
ocedur
eforsuchdi
vi
sion
shal
lbepr
escr
ibedi
nther
egul
ati
onsoft
he
Aut
hor
it
y.Thenewcooper
ati
vesshal
lbecome
l
egal
l
yest
abl
i
sheduponr
egi
str
ati
onwi
tht
he
Aut
hor
it
y:Pr
ovi
ded,
Thatal
lther
equi
rement
sset
f
ort
hint
hisCodehav
ebeencompl
i
edwi
thbyt
he
newcooper
ati
ves:
Prov
ided,
fur
ther
,Thatno
di
vi
sionofcooper
ati
vei
nfr
audofcr
edi
tor
sshal
l
bev
ali
d."

Sect
ion2.Pr
ocedur
es.Thef
oll
owi
ngpr
ocedur
es
shal
lbeobser
vedi
nthedi
vi
sionofcooper
ati
ves:

1.Appr
oval
ofPr
oposal
toDi
vi
de;

2.For
mul
ati
onofPl
anofDi
vi
sion;
3.Pr
esent
ati
onandAppr
oval
oft
hePl
anof
Di
vi
siont
otheGener
alAssembl
y;

4.Post
ingandPubl
i
cat
ionoft
heNot
iceofDi
vi
sion;

5.Wr
it
tenNot
if
icat
iont
oCr
edi
tor
s;

6.Fi
l
ingwi
tht
heAut
hor
it
yoft
heRequi
red
Document
sfort
heRegi
str
ati
onofDi
vi
sion;
and

7.I
ssuanceoft
heCer
ti
fi
cat
eofRegi
str
ati
on.

Sect
ion3.Pr
oposal
ofDi
vi
sion.Themaj
ori
ty
member
soft
heBoar
dofDi
rect
orsoratl
eastt
en
per
cent(
10%)ofmember
swi
thv
oti
ngr
ight
smay
pr
oposef
ordi
vi
sion,
whi
chmustbeappr
ovedby
atl
eastmaj
ori
tyoft
hemember
soft
he
cooper
ati
vewi
thv
oti
ngr
ight
spr
esentand
const
it
uti
ngaquor
um i
nagener
al/
repr
esent
ati
ve
assembl
ymeet
ingcal
l
edf
ort
hepur
pose.Upon
appr
oval
oft
hepr
oposal
todi
vi
de,
acommi
tt
eet
o
f
ormul
atet
hePl
anofDi
vi
sionshal
lbeconst
it
uted
byt
heGener
al/
Repr
esent
ati
veAssembl
y.

Sect
ion4.Pr
efer
enceofMember
s.Uponappr
oval
byt
heGener
al/
Repr
esent
ati
veAssembl
yint
he
meet
ingcal
l
edf
ort
hepur
pose,
member
soft
he
or
igi
nal
cooper
ati
veshal
lbeal
l
owedwi
thi
ntwo(
2)
weekst
ochooset
henewcooper
ati
vet
heypr
efer
t
ojoi
n.Themanagementoft
heor
igi
nal
cooper
ati
veshal
lthent
ransf
ert
hemember
's
shar
eandal
lot
heri
nter
est
stohi
s/herchosen
cooper
ati
ve.

Sect
ion5.Pr
esent
ati
onandAppr
oval
oft
hePl
an
ofDi
vi
sion.TheBoar
dofDi
rect
orsshal
lcal
la
Gener
al/
Repr
esent
ati
veAssembl
ymeet
ingt
o
act
ionsuchPl
anofDi
vi
sionwi
thnot
icet
oal
l
member
sofr
ecor
dandCr
edi
tor
satl
eastt
hir
ty
(
30)day
spr
iort
otheschedul
edmeet
ing.ThePl
an
ofDi
vi
sionshal
lbeappr
ovedbyav
oteoft
hree-
f
our
ths(
3/4)ofal
lmember
swi
thv
oti
ngr
ight
s,
pr
esentandconst
it
uti
ngaquor
um i
nsuch
gener
al/
repr
esent
ati
veassembl
ymeet
ing.
Sect
ion6.Ri
ghtofaDi
ssent
ingMember
.A
di
ssent
ingmembershal
lbeent
it
ledt
oar
efundof
hi
s/hershar
ecapi
tal
andal
lot
heri
nter
est
sunder
Ar
t.30oft
heCode.

Sect
ion7.Cont
ent
soft
hePl
anofDi
vi
sion.The
Pl
anofDi
vi
sionmusti
ncl
udet
hef
oll
owi
ng:

1.Ther
ati
onal
eorj
ust
if
icat
ionf
ort
hedi
vi
sionof
t
hecooper
ati
ve;

2.AFi
nanci
alSt
atementdul
ycer
ti
fi
edbyan
i
ndependentCer
ti
fi
edPubl
i
cAccount
anti
ncl
udi
ng
aschedul
eofasset
s,l
i
abi
l
iti
esandshar
ecapi
tal
oft
hecooper
ati
vei
ntendi
ngt
odi
vi
de;

3.Apr
oposedr
eval
uat
ionofasset
s,det
ermi
nat
ion
ofl
i
abi
l
iti
es,
stat
utor
yreser
ves,
undi
vi
dednet
sur
plusandmember
s'shar
ecapi
tal
;
4.Li
stofal
lther
ecei
vabl
esoft
hecooper
ati
ve;

5.Li
stofal
ltheCr
edi
tor
sandt
hei
rrespect
ive
cl
aimsagai
nstt
hecooper
ati
ve;

6.Pr
ocedur
efort
hedi
vi
sionofasset
s,al
l
ocat
ion
andset
tl
ementoft
heobl
i
gat
ionsandt
he
col
l
ect
ionofr
ecei
vabl
esoft
hecooper
ati
ve;

7.Feasi
bil
i
tyst
udyensur
ingt
hev
iabi
l
ityand
sust
ainabi
l
ityofbot
hcooper
ati
ves;

8.Li
stofmember
sshowi
ngt
hei
rshar
ecapi
tal
cont
ri
but
ionscer
ti
fi
edbyt
heSecr
etar
yand
at
test
edbyt
heBoar
dChai
rper
sonoft
he
cooper
ati
ve;

9.Thepr
oposedname,
addr
essandar
eaof
oper
ati
onoft
henewcooper
ati
ves;
and

10.Benef
itpackagef
orManagementSt
afft
obe
af
fect
edbyt
hepl
an.

Sect
ion8.Publ
i
cat
ion.Wi
thi
nsev
en(
7)day
saf
ter
t
hedat
eofappr
oval
oft
hedi
vi
sionoft
he
cooper
ati
ve,
theSecr
etar
yoft
hecooper
ati
ve,
dul
y
not
edbyt
heChai
rper
son,
shal
lpubl
i
shsuchpl
an
ofdi
vi
siononceaweekf
ort
hree(
3)consecut
ive
weeksi
nanewspaperofgener
alci
rcul
ati
onwi
thi
n
i
tsar
eaofoper
ati
on.Sai
dpubl
i
cat
ionmayal
sobe
suppl
ement
edbyr
adi
oandt
elev
isi
on
announcement
s.

Al
ter
nat
ivel
y,t
heannouncementoft
hedi
vi
sion
mayal
sobedonebypost
ingi
natl
eastt
hree(
3)
conspi
cuouspubl
i
cpl
acesf
ort
hree(
3)
consecut
iveweekswi
thi
nit
sar
eaofoper
ati
on.

Li
kewi
se,
let
ter
s/not
icesdul
ysi
gnedbyt
he
Chai
rper
sonannounci
ngsuchdi
vi
sionshal
lbe
sentbyt
heSecr
etar
yoft
hecooper
ati
vet
hrough
r
egi
ster
edmai
l
stot
hei
rcr
edi
tor
s.
Sect
ion9.Obj
ect
ionbyaThi
rdPar
ty.Wi
thi
nfi
ft
een
(
15)day
sfr
om t
hedayofpost
ingorf
rom t
hel
ast
dayofpubl
i
cat
ion,
apar
tymayf
il
eanobj
ect
ionor
opposi
ti
ont
othePl
anofDi
vi
sionbef
oret
he
Aut
hor
it
y,copyf
urni
shedt
hecooper
ati
ve
concer
ned,
whi
chshal
lbedeci
dedwi
thi
nsi
xty(
60)
day
sfr
om r
ecei
ptoft
heobj
ect
ionoropposi
ti
on.I
f
t
heobj
ect
ionoropposi
ti
oni
smer
it
ori
ous,
inor
der
nott
opr
ejudi
cet
hei
nter
estoft
het
hir
dpar
ty,
the
Aut
hor
it
yshal
lcauset
hedef
ermentordi
sappr
oval
oft
her
egi
str
ati
onoft
henewcooper
ati
ves.

Af
tert
hel
apseoft
heper
iodt
ofi
l
ean
obj
ect
ion/
opposi
ti
onandnoobj
ect
ion/
opposi
ti
on
hasbeenf
il
edoraf
teral
lobj
ect
ions/
opposi
ti
ons
hav
ebeenr
esol
ved,
thecooper
ati
vecanf
il
eit
s
appl
i
cat
ionf
orr
egi
str
ati
on.

Sect
ion10.Addi
ti
onal
Requi
rement
sfor
Regi
str
ati
on.I
naddi
ti
ont
other
egul
ar
r
equi
rement
sforr
egi
str
ati
onofcooper
ati
ves,
the
f
oll
owi
ngdocument
sshal
lbef
il
edwi
tht
he
Aut
hor
it
y:
1.Ther
esol
uti
onofdi
vi
sionasappr
ovedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
ydul
ycer
ti
fi
edby
t
heSecr
etar
yanddul
ynot
edbyt
heChai
rper
son;

2.ThePl
anofDi
vi
sioni
ncl
udi
ngal
li
ts
at
tachment
s;

3.TheMi
nut
esoft
heGener
al/
Repr
esent
ati
ve
Assembl
yMeet
ingappr
ovi
ngt
hePl
anofDi
vi
sion;

4.TheFi
nanci
alSt
atement
sofeachoft
henew
cooper
ati
vesdul
ycer
ti
fi
edbyt
her
espect
ive
Tr
easur
ersandChai
rper
sons;

5.Pr
oofofNot
iceofPubl
i
cat
ionand/
orpost
ingof
t
heannouncementofsuchdi
vi
sion;

6.Pr
oofofNot
icet
otheCr
edi
tor
s;

7.Wr
it
tenAgr
eementt
oSet
tl
eObl
i
gat
ion;
and
8.Or
igi
nal
Cer
ti
fi
cat
eofRegi
str
ati
on.

Sect
ion11.I
ssuanceofCer
ti
fi
cat
e.Oncet
he
r
egi
str
ati
onr
equi
rement
sar
efoundt
obe
compl
etedandi
nor
der
,theAut
hor
it
yshal
li
ssue
t
heCer
ti
fi
cat
esofRegi
str
ati
ont
othenew
cooper
ati
ves.TheCer
ti
fi
cat
eofRegi
str
ati
onof
t
heor
igi
nal
cooper
ati
veshal
lbesur
render
edt
o
t
heAut
hor
it
yforcancel
l
ati
on.

Sect
ion12.Ef
fectofRegi
str
ati
on.Cooper
ati
ves
f
ormedandor
gani
zedundert
hisRul
eshal
l
acqui
rej
uri
dical
per
sonal
i
tyf
rom t
hedat
ethe
Aut
hor
it
yissuesaCer
ti
fi
cat
esofRegi
str
ati
on
undert
heAut
hor
it
y'
sof
fi
cial
seal
.

RULE5
GUI
DELI
NESGOVERNI
NGTHEPROCEDUREFOR
MERGERORCONSOLI
DATI
ON
Sect
ion1.Legal
Basi
s.Thel
egal
basesf
ort
his
Rul
ear
eAr
ti
cles21and22oft
heCode,
quot
edas
f
oll
ows:

"
Art
.21.Mer
gerandConsol
i
dat
ionofCooper
ati
ves.
-

Two(
2)ormor
ecooper
ati
vesmaymer
gei
ntoa
si
ngl
ecooper
ati
ve,
whi
chshal
lbeei
theroneoft
he
const
it
uentcooper
ati
vesort
heconsol
i
dat
ed
cooper
ati
ves.

Nomer
gerorconsol
i
dat
ionshal
lbev
ali
dunl
ess
appr
ovedbyt
hree-
four
ths(
3/4)v
oteofal
l
member
swi
thv
oti
ngr
ight
s,pr
esentand
const
it
uti
ngaquor
um ofeachoft
heconst
it
uent
cooper
ati
vesatsepar
ategener
alassembl
y
meet
ings.Thedi
ssent
ingmember
sshal
lhav
ethe
r
ightt
oex
erci
set
hei
rri
ghtt
owi
thdr
awt
hei
r
member
shi
ppur
suantt
oAr
ti
cle30.

(
3)TheAut
hor
it
yshal
li
ssuet
hegui
del
i
nes
gov
erni
ngt
hepr
ocedur
eofmer
geror
consol
i
dat
ionofcooper
ati
ves.I
nanycase,
the
mer
gerorconsol
i
dat
ionshal
lbeef
fect
iveupon
t
hei
ssuanceoft
heCer
ti
fi
cat
eofMer
geror
Consol
i
dat
ionbyt
heAut
hor
it
y.

Ar
t.22.Ef
fect
sofMer
gerandConsol
i
dat
ion.-The
mer
gerorconsol
i
dat
ionoft
hecooper
ati
vesshal
l
hav
ethef
oll
owi
ngef
fect
s:

(
1)Theconst
it
uentcooper
ati
vesshal
lbecomea
si
ngl
ecooper
ati
ve,
whi
chi
ncaseofmer
gershal
l
bet
hesur
viv
ingcooper
ati
ve,
andi
ncaseof
consol
i
dat
ion,
shal
lbet
heconsol
i
dat
ed
cooper
ati
ve.

(
2)Thesepar
ateex
ist
enceoft
heconst
it
uent
cooper
ati
vesshal
lcease,
exceptt
hatoft
he
sur
viv
ingort
heconsol
i
dat
edcooper
ati
ve.

(
3)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lpossessal
lri
ght
s,pr
ivi
l
eges,
immuni
ti
esand
power
sandshal
lbesubj
ectt
oal
lthedut
iesand
l
i
abi
l
iti
esofacooper
ati
veor
gani
zedundert
his
Code;

(
4)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lpossessal
ltheasset
s,r
ight
s,pr
ivi
l
eges,
i
mmuni
ti
esandf
ranchi
sesofeachoft
he
const
it
uentcooper
ati
ves;
and

(
5)Thesur
viv
ingort
heconsol
i
dat
edcooper
ati
ve
shal
lber
esponsi
blef
oral
lthel
i
abi
l
iti
esand
obl
i
gat
ionsofeachoft
heconst
it
uent
cooper
ati
vesi
nthesamemannerasi
fthe
sur
viv
ingorconsol
i
dat
edcooper
ati
vehadi
tsel
f
i
ncur
redsuchl
i
abi
l
iti
esorobl
i
gat
ions.Anycl
aim,
act
ion,
orpr
oceedi
ngpendi
ngbyoragai
nstany
suchconst
it
uentcooper
ati
vesmaybepr
osecut
ed
byoragai
nstt
hesur
viv
ingorconsol
i
dat
ed
cooper
ati
ve,
ast
hecasemaybe.Nei
thert
he
r
ight
sofcr
edi
tor
snoranyl
i
enupont
hepr
oper
ty
ofanyofsuchconst
it
uentshal
lbei
mpai
redby
suchmer
gerorconsol
i
dat
ion.
"
Sect
ion2.Par
ti
est
otheMer
gerorConsol
i
dat
ion.
Onl
ycooper
ati
vesbel
ongi
ngt
othesamecat
egor
y
canbepar
ti
est
oMer
gerorConsol
i
dat
ion.A
pr
imar
ycooper
ati
vecanonl
ymer
geor
consol
i
dat
ewi
thapr
imar
ycooper
ati
ve,
a
secondar
ywi
thasecondar
ycooper
ati
ve,
anda
t
ert
iar
ywi
that
ert
iar
ycooper
ati
ve.

Sect
ion3.Pr
ocedur
es.Thef
oll
owi
ngar
ethe
pr
ocedur
est
otheMer
gerorConsol
i
dat
ionof
cooper
ati
ves:

1.Appr
oval
oft
hepr
oposal
tomer
geor
consol
i
dat
ebyt
heGener
al/
Repr
esent
ati
ve
Assembl
yofeachconst
it
uentcooper
ati
ves;

2.For
mul
ati
onofPl
anofMer
gerorConsol
i
dat
ion
byt
her
epr
esent
ati
vesoft
heconst
it
uent
cooper
ati
ves;

3.Pr
esent
ati
ont
oandAppr
oval
oft
hePl
anof
Mer
gerorConsol
i
dat
ionbyt
he
Gener
al/
Repr
esent
ati
veAssembl
yofeach
const
it
uentcooper
ati
ves;

4.For
mul
ati
onoft
heAmendment
/NewAr
ti
clesof
Cooper
ati
onandBy
-l
aws;

5.Post
ing/
Publ
i
cat
ionofMer
gerorConsol
i
dat
ion;

6.Wr
it
tenNot
if
icat
iont
oCr
edi
tor
sthr
ough
r
egi
ster
edmai
lwi
thr
etur
ncar
dandot
her
appl
i
cabl
eel
ect
roni
cmeans;

7.Fi
l
ingwi
tht
heAut
hor
it
yther
equi
reddocument
s
f
ort
her
egi
str
ati
onofmer
gerorconsol
i
dat
ion;
and

8.I
ssuanceofCer
ti
fi
cat
eofRegi
str
ati
onof
Mer
ger
/Consol
i
dat
ionbyt
heAut
hor
it
y.

Sect
ion4.Cont
ent
sofPl
anofMer
geror
Consol
i
dat
ion.ThePl
anofMer
geror
Consol
i
dat
ionshal
li
ncl
udet
hef
oll
owi
ng:

1.St
atementofPur
poseofsuchMer
geror
Consol
i
dat
ion;

2.TheRegi
ster
edNames,
Addr
essesand
Regi
str
ati
on/
Conf
ir
mat
ionNumber
s,Cont
act
Det
ail
sandRespect
iveAr
easofOper
ati
onoft
he
Const
it
uentCooper
ati
ves;

3.ThePr
oposedAmendment
stot
heSur
viv
ing
Cooper
ati
ve'
sAr
ti
clesofCooper
ati
onandBy
-l
aws,
i
ncaseofMer
gerandwi
thr
espectt
o
Consol
i
dat
ion,
thePr
oposedAr
ti
clesof
Cooper
ati
onandBy
-l
aws;

4.Li
stofMember
sofeachConst
it
uent
Cooper
ati
vesshowi
ngt
hei
rShar
eCapi
tal
Cont
ri
but
iondul
ycer
ti
fi
edbyt
her
espect
iveBoar
d
Secr
etar
iesandat
test
edbyt
her
espect
iveBoar
d
Chai
rper
sons;
5.TheName,
Addr
essandAr
eaofOper
ati
onof
t
heSur
viv
ingCooper
ati
ve,
incaseofMer
ger
,the
Pr
oposedName,
Addr
essandAr
eaofOper
ati
on,
i
ncaseofConsol
i
dat
ion;

6.Feasi
bil
i
tySt
udyi
ndi
cat
ingt
heVi
abi
l
ityand
Sust
ainabi
l
ityoft
heMer
ging/
Consol
i
dat
ing
Cooper
ati
ves;

7.TheAudi
tedFi
nanci
alSt
atement
sasoft
he
i
mmedi
atepr
ecedi
ngy
eari
ncl
udi
ngt
heschedul
e
ofasset
s,l
i
abi
l
iti
esandcapi
tal
oft
hemer
gingor
consol
i
dat
ingcooper
ati
ves;
and

8.PackageBenef
it
soft
heManagementSt
afft
o
beaf
fect
edbyt
hePl
an.

Sect
ion5.Pr
oposal
ofMer
gerorConsol
i
dat
ion.
ThePr
oposal
toMer
georConsol
i
dat
emaybe
madebyt
heBoar
dofDi
rect
orsorbyatl
eastt
en
per
cent(
10%)oft
hemember
swi
thv
oti
ngr
ight
s.
I
tshal
lbeappr
ovedbyatl
eastmaj
ori
tyoft
he
member
sofeachoft
heconst
it
uentcooper
ati
ves
wi
thv
oti
ngr
ight
s,pr
esentandconst
it
uti
nga
quor
um i
nsepar
ategener
al/
repr
esent
ati
ve
assembl
ymeet
ingscal
l
edf
ort
hepur
pose.

Dur
ingt
hesamemeet
ing,
the
Gener
al/
Repr
esent
ati
veAssembl
yshal
lappoi
ntor
el
ectt
her
epr
esent
ati
vest
othej
ointcommi
tt
eet
o
dr
aftt
hePl
anofMer
gerorConsol
i
dat
ion.

Sect
ion6.Appr
oval
oft
hePl
anofMer
geror
Consol
i
dat
ion.ThePl
anofMer
geror
Consol
i
dat
ionj
oint
lypr
epar
edbyr
epr
esent
ati
ves
f
rom t
heconst
it
uentcooper
ati
vesshal
lbe
submi
tt
edf
orappr
oval
tot
hemember
sofeach
const
it
uentcooper
ati
veatsepar
ate
gener
al/
repr
esent
ati
veassembl
ymeet
ingsdul
y
cal
l
edf
ort
hepur
pose.Not
iceofsuchmeet
ing
shal
lbegi
vent
oal
lmember
soft
her
espect
ive
cooper
ati
ve,
ser
vedei
therper
sonal
l
y,orby
r
egi
ster
edmai
lwi
thr
etur
ncar
dorel
ect
roni
c
meanswi
thi
ntheper
iodasi
ndi
cat
edi
nthei
rBy
-
l
aws.
Theaf
fi
rmat
ivev
oteofmember
srepr
esent
ingat
l
eastt
hree-
four
ths(
3/4)ofal
lmember
swi
th
v
oti
ngr
ight
s,pr
esentandconst
it
uti
ngaquor
um
ofeachoft
heconst
it
uentcooper
ati
vesat
separ
ategener
al/
repr
esent
ati
veassembl
y
meet
ingsshal
lbenecessar
yfort
heappr
oval
of
t
hePl
anofMer
gerorConsol
i
dat
ion,
or
amendment
sther
eto,
ifany
.

Sect
ion7.TheAr
ti
clesofCooper
ati
onandBy
-
Laws.I
ncaseofMer
ger
,theAmendedAr
ti
clesof
Cooper
ati
onandBy
-Laws,
ifappl
i
cabl
e,shal
lbe
at
test
edbyt
heI
ncumbentDi
rect
orsoft
he
Sur
viv
ingCooper
ati
vewhi
l
einConsol
i
dat
ion,
the
Ar
ti
clesandBy
-Lawsshal
lbesi
gnedbyt
he
Cooper
ati
ngDi
rect
ors.

Sect
ion8.Post
ing/
Publ
i
cat
ion.Announcementof
t
heMer
gerorConsol
i
dat
ionmaybedoneby
post
ingi
natl
eastt
hree(
3)conspi
cuouspl
acesi
n
t
hei
rrespect
ivear
easofoper
ati
on;
orpubl
i
cat
ion
i
nanewspaperofgener
alci
rcul
ati
ononceaweek
f
ort
hree(
3)consecut
iveweeks.Sai
dpubl
i
cat
ion
mayal
sobesuppl
ement
edbyr
adi
oandt
elev
isi
on
announcement
soranyot
herel
ect
roni
cmeansof
communi
cat
ion.

Sect
ion9.Not
icet
oCr
edi
tor
sandI
nvest
ors.The
Of
fi
cer
soft
heMer
gingorConsol
i
dat
ing
Cooper
ati
vesshal
lal
sosendl
ett
ersbyr
egi
ster
ed
mai
lwi
thr
etur
ncar
dtot
heCr
edi
tor
sand
i
nvest
orsoft
hei
rrespect
ivecooper
ati
ves
announci
ngsuchMer
gerorConsol
i
dat
ion.

Sect
ion10.Obj
ect
ion/
sbyaThi
rdPar
ty.Wi
thi
n
f
if
teen(
15)day
saf
tert
hedat
eofpost
ingorf
rom
t
hel
astdayofpubl
i
cat
ion,
athi
rdpar
tymayf
il
ean
obj
ect
ionoropposi
ti
ont
othePl
anofMer
geror
Consol
i
dat
ionbef
oret
heAut
hor
it
ywhi
chshal
lbe
deci
dedwi
thi
nsi
xty(
60)day
sfr
om r
ecei
ptoft
he
obj
ect
ionoropposi
ti
on.Fi
ndi
ngt
heobj
ect
ionor
opposi
ti
onmer
it
ori
ous,
inor
dernott
opr
ejudi
ce
t
hei
nter
estoft
het
hir
dpar
ty,
theAut
hor
it
ywi
l
l
causet
hedef
ermentordi
sappr
oval
oft
he
r
egi
str
ati
onoft
heMer
gerorConsol
i
dat
ion.
Af
tert
hel
apseoft
heper
iodt
ofi
l
ean
obj
ect
ion/
opposi
ti
onandnoobj
ect
ion/
opposi
ti
on
hasbeenf
il
edoraf
teral
lobj
ect
ions/
opposi
ti
ons
hav
ebeenr
esol
ved,
thecooper
ati
vecanf
il
eit
s
appl
i
cat
ionf
orr
egi
str
ati
on.

Sect
ion11.Addi
ti
onal
Requi
rement
sfor
Regi
str
ati
on.TheOf
fi
cer
soft
hemer
gedor
consol
i
dat
edcooper
ati
vesshal
lfi
l
ewi
tht
he
Aut
hor
it
ythef
oll
owi
ngaddi
ti
onal
requi
rement
sfor
r
egi
str
ati
on:

A.ForMer
ger

1.TheOr
igi
nal
Cer
ti
fi
cat
eofRegi
str
ati
onoft
he
absor
bedcooper
ati
ve;

2.TheGener
al/
Repr
esent
ati
veAssembl
y
r
esol
uti
onsofbot
hconst
it
uentcooper
ati
ves
appr
ovi
ngt
hePl
anofMer
gerdul
ycer
ti
fi
edbyt
he
Secr
etar
iesandat
test
edbyt
her
espect
ive
Chai
rper
sons;

3.Theex
cer
ptsf
rom t
hemi
nut
esoft
he
gener
al/
repr
esent
ati
veassembl
ymeet
ingst
ati
ng
amongot
her
stheappr
oval
oft
heMer
ger
;

4.Cer
ti
fi
cat
ionoft
heSecr
etar
iesdul
yat
test
edby
t
heChai
rper
sonsoft
heconst
it
uentcooper
ati
ves
t
hatt
her
ewasaquor
um andt
her
equi
rednumber
ofv
otesf
ort
heappr
oval
wasmet
;

5.Theappr
ovedPl
anofMer
gerandal
li
ts
at
tachment
sasr
equi
redunderSect
ion4oft
his
Rul
e;

6.Thepr
oposedamendmentt
otheAr
ti
clesof
Cooper
ati
onandBy
-l
awsoft
heSur
viv
ing
Cooper
ati
ve,
ifnecessar
y;

7.Sur
etyBondofAccount
abl
eOf
fi
cer
s;
8.Pr
oofofPubl
i
cat
ion/
Post
ingoft
he
AnnouncementofMer
ger
;

9.Pr
oofofNot
icet
oCr
edi
tor
s;

10.Wr
it
tenAgr
eementt
oset
tl
eObl
i
gat
ions

11.Theor
igi
nal
Cer
ti
fi
cat
eofRegi
str
ati
onoft
he
Sur
viv
ingCooper
ati
ve;

12.Fav
orabl
eendor
sementf
rom t
heconcer
ned
gov
ernmentagencyi
fnecessar
y/appl
i
cabl
e;and

13.Regi
str
ati
onf
eei
naccor
dancewi
tht
he
Schedul
eofFeespr
escr
ibedbyt
heAut
hor
it
y.

B.ForConsol
i
dat
ion

1.TheOr
igi
nal
Cer
ti
fi
cat
eofRegi
str
ati
onofbot
h
const
it
uentcooper
ati
ves;
2.TheGener
al/
Repr
esent
ati
veAssembl
y
r
esol
uti
onsappr
ovi
ngt
heconsol
i
dat
ionoft
he
cooper
ati
vedul
ycer
ti
fi
edbyt
heSecr
etar
iesand
at
test
edbyt
heChai
rper
sonsoft
heConsol
i
dat
ing
Cooper
ati
ves;

3.Theex
cer
ptsf
rom t
hemi
nut
esoft
he
Gener
al/
Repr
esent
ati
veAssembl
ymeet
ingsoft
he
Consol
i
dat
ingCooper
ati
veswi
tht
hei
rrespect
ive
at
tendancesheet
sdul
ycer
ti
fi
edbyt
heSecr
etar
y
andChai
rper
sonorPr
esi
dingOf
fi
cer
;

4.Cer
ti
fi
cat
ionoft
heSecr
etar
iesdul
yat
test
edby
t
heChai
rper
sonsoft
heConst
it
uentCooper
ati
ves
t
hatt
her
ewasaquor
um andt
her
equi
rednumber
ofv
otesf
ort
heappr
oval
wasmet
;

5.Theappr
ovedPl
anofConsol
i
dat
ionandal
li
ts
at
tachment
sasr
equi
redunderSect
ion4oft
his
Rul
e;
6.TheEconomi
cSur
vey
;

7.Thepr
oposedAr
ti
clesofCooper
ati
onandBy
-
l
awsoft
heConsol
i
dat
edCooper
ati
ve;

8.Sur
etyBondofAccount
abl
eOf
fi
cer
s;

9.Pr
oofofPubl
i
cat
ion/
Post
ingoft
he
announcementofconsol
i
dat
ion;

10.Pr
oofofNot
icet
oCr
edi
tor
s;

11.Wr
it
tenAgr
eementt
oset
tl
eObl
i
gat
ions;

12.Theor
igi
nal
Cer
ti
fi
cat
esofRegi
str
ati
onoft
he
Consol
i
dat
ingCooper
ati
ves;

13.Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;
and
14.Regi
str
ati
onf
eei
naccor
dancewi
tht
he
Schedul
eofFeespr
escr
ibedbyt
heAut
hor
it
y.

Sect
ion12.I
ssuanceofCer
ti
fi
cat
e.Oncet
he
r
egi
str
ati
onr
equi
rement
sar
ecompl
i
edwi
th,
the
Aut
hor
it
yshal
li
ssuet
heCer
ti
fi
cat
eofMer
ger
,or
newCer
ti
fi
cat
eofRegi
str
ati
oni
ncaseof
consol
i
dat
ion.TheCer
ti
fi
cat
eofRegi
str
ati
onof
t
heor
igi
nal
cooper
ati
vesshal
lbesur
render
edt
o
t
heAut
hor
it
y.

RULE6
GUI
DELI
NESFORLABORATORYCOOPERATI
VES

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sthet
hir
dpar
agr
aphofAr
t.26oft
heCode,
quot
edasf
oll
ows:

"
Art
.26.Ki
ndsofMember
shi
p.-Acooper
ati
ve
or
gani
zedbymi
nor
sshal
lbeconsi
der
eda
l
abor
ator
ycooper
ati
veandmustbeaf
fi
li
atedwi
th
ar
egi
ster
edcooper
ati
ve.Al
abor
ator
ycooper
ati
ve
shal
lbegov
ernedbyspeci
algui
del
i
nest
obe
pr
omul
gat
edbyt
heAut
hor
it
y."

Sect
ion2.Or
gani
zat
ionofLabor
ator
yCooper
ati
ve.
Fi
ft
een(
15)ormor
emi
nor
swhoar
eFi
l
ipi
no
ci
ti
zens,
act
ual
l
yresi
dingi
nthecommuni
tyor
enr
oll
edi
naneducat
ional
inst
it
uti
onwi
thi
nor
neart
hear
eaofoper
ati
onoft
heGuar
dian
Cooper
ati
veoroutofschool
minoract
ual
l
y
r
esi
dingi
nthecommuni
ty,
mayor
gani
zea
Labor
ator
yCooper
ati
vecomposedofmi
nor
s,
whi
chshal
lbesev
en(
7)y
ear
sol
dbutbel
ow
ei
ght
een(
18)y
ear
sofage.

Sect
ion3.Pur
posesofLabor
ator
yCooper
ati
ves.A
Labor
ator
yCooper
ati
veshal
lbeor
gani
zedf
orany
oral
loft
hef
oll
owi
ngpur
poses:

1.Toser
veasat
rai
ninggr
oundf
ori
tsmember
sto
pr
epar
ethem f
ormember
shi
pinr
egul
ar
cooper
ati
ves;
2.Tot
eacht
hev
alueoft
hri
ftandsav
ing
mobi
l
izat
ionamongi
tsmember
s;

3.Toi
nst
il
lcooper
ati
vev
alues,
pri
nci
ples,
financi
al
di
sci
pli
neandl
eader
shi
pski
l
lsamongi
ts
member
s;

4.Topr
omot
eandadv
anceFi
l
ipi
nosoci
aland
cul
tur
alv
alues,
ecol
ogi
cal
awar
enessand
sust
ainabl
edev
elopment
.

Sect
ion4.Cont
ent
soft
heAr
ti
clesofCooper
ati
on.
TheAr
ti
clesofCooper
ati
onofaLabor
ator
y
Cooper
ati
vesi
gnedbyeachoft
heor
gani
zer
sshal
l
pr
ovi
det
hef
oll
owi
ng:

1.Thenameoft
hecooper
ati
vewhi
chshal
li
ncl
ude
t
hewor
ds"
Labor
ator
yCooper
ati
ve"
;

2.Thepur
poseorpur
posesf
orwhi
chi
tis
or
gani
zed;

3.Thet
erm ofex
ist
ence;

4.Thear
eaofoper
ati
onsandt
hepost
aladdr
ess
oft
hepr
inci
pal
off
iceoft
hel
abor
ator
y
cooper
ati
ve;

5.Thear
eaofoper
ati
onsandt
hepost
aladdr
ess
oft
hepr
inci
pal
off
iceoft
heguar
diancooper
ati
ve;

6.Thenames,
nat
ional
i
ty,
bir
thdat
es,
andpost
al
addr
essesoft
hecooper
ator
s;

7.Thenames,
andpost
aladdr
essesofmember
s
oft
heboar
dofdi
rect
orsofi
tsguar
dian
cooper
ati
ve;
and

8.Theamountofi
tsshar
ecapi
tal
,thenames,
and
addr
essesofi
tsmember
s.
Sect
ion5.Cont
ent
soft
heBy
-Laws.TheBy
-l
awsof
aLabor
ator
yCooper
ati
veshal
lpr
ovi
def
ort
he
f
oll
owi
ng:

1.Thequal
i
ficat
ionsf
oradmi
ssi
ont
omember
shi
p
andt
hepay
mentt
obemadeori
nter
estt
obe
acqui
redasacondi
ti
ont
otheex
erci
seoft
her
ight
ofmember
shi
p;

2.Ther
ight
sandl
i
abi
l
iti
esofmember
shi
p;

3.Theci
rcumst
ancesunderwhi
chmember
shi
pis
acqui
red,
mai
ntai
nedandl
ost
;

4.Thepr
ocedur
est
obef
oll
owedi
ncasesof
t
ermi
nat
ionofmember
shi
p;

5.Thecondi
ti
onsunderwhi
cht
het
ransf
erofa
shar
eori
nter
estoft
hemember
sshal
lbe
per
mit
ted;
6.Ther
ulesandpr
ocedur
esont
heagenda,
time,
pl
aceandmannerofcal
l
ing,
conv
eni
ng,
conduct
ingmeet
ings,
quor
um r
equi
rement
s,
v
oti
ngsy
stems,
andot
hermat
ter
srel
ati
vet
othe
busi
nessaf
fai
rsoft
hegener
alassembl
y,boar
dof
di
rect
ors,
andcommi
tt
ees;

7.Thegener
alconductoft
heaf
fai
rsoft
he
cooper
ati
ve,
incl
udi
ngt
hepower
sanddut
iesof
t
heGener
alAssembl
y,t
heboar
dofdi
rect
ors,
commi
tt
eesand,
off
icer
s,andt
hei
rqual
i
ficat
ions
anddi
squal
i
ficat
ions;

8.Themanneri
nwhi
cht
hecapi
tal
mayber
aised
andt
hepur
posesf
orwhi
chi
tcanbeut
il
iz
ed;

9.Theaccount
ingandaudi
ti
ngsy
stems;

10.Themet
hodofdi
str
ibut
ionofnetsur
plus;

11.Themannerofadopt
ingandamendi
ngby
-l
aws;
12.Ot
hermat
ter
sinci
dentt
othepur
posesand
act
ivi
ti
esoft
hecooper
ati
ve.

Sect
ion6.Capi
tal
i
zat
ionRequi
rement
s.The
Labor
ator
yCooper
ati
veshal
li
ncl
udei
nit
sBy
laws
apr
ogr
am oncont
inuousCapi
tal
Bui
l
d-Up.

Sect
ion7.Af
fi
li
ati
on.ALabor
ator
yCooper
ati
ve
mustbeaf
fi
li
atedwi
thadul
yregi
ster
ed
cooper
ati
ve,
tobeknownast
heGuar
dian
Cooper
ati
ve,
bef
oret
heaut
hor
it
yshal
li
ssuea
Cer
ti
fi
cat
eofRecogni
ti
on.

ALabor
ator
yCooper
ati
vepr
imar
il
ycomposedof
st
udent
sfr
om apar
ti
cul
arschool
shal
lbe
af
fi
li
atedwi
tht
heschool
'
scooper
ati
ve,
ifany
.If
t
heLabor
ator
yCooper
ati
vei
scomposedpr
imar
il
y
ofout
-of
-school
minor
s,i
tshal
lbeaf
fi
li
atedwi
tha
cooper
ati
veofi
tschoi
cewi
thi
nornear
esti
tsar
ea
ofoper
ati
on.
I
ntheabsenceofadul
yregi
ster
edcooper
ati
vei
n
t
hear
eaorr
efusal
ofadul
yregi
ster
edcooper
ati
ve
t
oacceptt
heaf
fi
li
ati
onofaLabor
ator
y
Cooper
ati
ve,
thesai
dLabor
ator
yCooper
ati
vemay
r
equestassi
stancef
rom t
henear
estCDAOf
fi
cei
n
i
dent
if
yingapossi
bleGuar
dianCooper
ati
ve.

Sect
ion8.Responsi
bil
i
tyoft
heGuar
dian
Cooper
ati
ve.TheGuar
dianCooper
ati
veshal
l
super
vise,
moni
tor
,andactf
orandi
nbehal
foft
he
Labor
ator
yCooper
ati
vei
nthei
rdeal
i
ngs,
t
ransact
ionswi
tht
hir
dpar
ti
eswhencapaci
tyt
o
cont
racti
srequi
red.

I
tshal
lber
esponsi
blef
ort
hecooper
ati
ve
educat
ionandt
rai
ningofal
lof
fi
cer
sand
member
soft
hel
abor
ator
ycooper
ati
ve.

Submi
ssi
onofr
epor
tst
otheAut
hor
it
yont
he
act
ivi
ti
esandeconomi
coper
ati
onsoft
he
Labor
ator
yCooper
ati
veshal
ll
ikewi
sebet
he
r
esponsi
bil
i
tyoft
heGuar
dianCooper
ati
ve.
Sect
ion9.Li
abi
l
ityoft
heGuar
dianCooper
ati
ve.-
TheGuar
dianCooper
ati
veex
erci
singpar
ent
al
aut
hor
it
ymaybel
i
abl
eforanyv
iol
ati
onsi
nthe
cooper
ati
ve'
soper
ati
on.

Sect
ion10.Requi
rement
sforRecogni
ti
onof
Labor
ator
yCooper
ati
ve.ALabor
ator
yCooper
ati
ve
seeki
ngr
ecogni
ti
onassuchshal
lsubmi
t,t
hrough
t
heGuar
dianCooper
ati
ve,
thef
oll
owi
ng
r
equi
rement
stot
heAut
hor
it
yfort
hei
ssuanceofa
Cer
ti
fi
cat
eofRecogni
ti
on:

1.Ar
ti
clesofCooper
ati
onandBy
-l
aws;
and

2.Resol
uti
onoft
heBoar
dofDi
rect
orsoft
he
Guar
dianCooper
ati
veaccept
ingi
tsr
esponsi
bil
i
ty
andl
i
abi
l
ityasGuar
dianoft
heLabor
ator
y
Cooper
ati
ve.

Sect
ion11.I
ssuanceofCer
ti
fi
cat
eofRecogni
ti
on.
ACer
ti
fi
cat
eofRecogni
ti
onshal
lbei
ssuedbyt
he
Aut
hor
it
yunderi
tsof
fi
cial
seal
uponcompl
i
ance
wi
thal
lther
equi
rement
ssetf
ort
hbyt
hisr
ule.The
Cer
ti
fi
cat
eshal
lbeconcl
usi
veev
idencet
hatt
he
Labor
ator
yCooper
ati
vet
her
einment
ionedi
sdul
y
r
ecogni
zedunl
esssuchr
ecogni
ti
onhasbeen
ear
li
err
evoked.

Thei
ssuanceoft
heCer
ti
fi
cat
eofRecogni
ti
on
doesnotbest
owuponaLabor
ator
yCooper
ati
ve
wi
thaj
uri
dical
per
sonal
i
ty.

Sect
ion12.Ter
minat
ionofMember
shi
p.The
f
oll
owi
ngshal
lbecondi
ti
onsf
ort
ermi
nat
ionof
member
shi
pinaLabor
ator
yCooper
ati
ve:

1.Uponr
eachi
ngt
heageofmaj
ori
ty(
18y
ear
sof
age)
;

2.Thosepr
ovi
dedunderAr
t.30oft
heCode;
and

3.Suchot
hercondi
ti
onsasmaybepr
ovi
dedf
ori
n
t
heBy
-l
aws.

Sect
ion13.Ref
undofShar
eCapi
tal
.Upon
t
ermi
nat
ionofmember
shi
p,t
hef
ormermember
shal
lbeent
it
ledt
oar
efundofhi
sshar
ecapi
tal
cont
ri
but
ionandal
lot
heri
nter
est
sint
he
Labor
ator
yCooper
ati
vei
naccor
dancewi
thAr
t.31
oft
heCode.

Sect
ion14.Opt
ionofMemberWhoReachest
he
AgeofMaj
ori
ty.Anymemberr
eachi
ngt
heageof
maj
ori
tymayoptt
ojoi
ntheGuar
dianCooper
ati
ve
uponcompl
i
anceofal
lther
equi
rement
sfor
member
shi
p.

Sect
ion15.Li
mit
ati
on.AGuar
dianCooper
ati
ve
shal
lsuper
viseonl
yone(
1)l
abor
ator
ycooper
ati
ve.

RULE7
FUNCTI
ONS,
RESPONSI
BILI
TIESANDTRAI
NING
REQUI
REMENTSOFDI
RECTORS,
OFFI
CERSAND
COMMI
TTEEMEMBERS
Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.44oft
heCode,
quot
edasf
oll
ows:

"
Art
.44.Funct
ions,
Responsi
bil
i
ties,
andTr
aini
ng
Requi
rement
sofDi
rect
ors,
Off
icer
s,and
Commi
tt
eeMember
s.Thef
unct
ionsand
r
esponsi
bil
i
tiesoft
hedi
rect
ors,
off
icer
sand
commi
tt
eemember
s,aswel
last
hei
rtr
aini
ng
r
equi
rement
sshal
lbei
naccor
dancewi
tht
her
ules
andr
egul
ati
onsi
ssuedbyt
heAut
hor
it
y."

Sect
ion2.Of
fi
cer
soft
heCooper
ati
ve.The
Of
fi
cer
soft
hecooper
ati
veshal
li
ncl
udet
he
Member
soft
heBoar
dofDi
rect
ors,
Member
sof
t
heDi
ff
erentCommi
tt
eescr
eat
edbyt
heGener
al
Assembl
y,Gener
alManagerorChi
efEx
ecut
ive
Of
fi
cer
,Secr
etar
y,Tr
easur
erandMember
shol
ding
ot
herposi
ti
onsasmay
bepr
ovi
dedf
ori
nthei
rBy
-
l
aws.Assucht
heyar
eent
rust
edwi
tht
hepowerof
ex
erci
singaut
hor
it
ywi
thi
nthescopeoft
hei
r
def
inedf
unct
ionswhi
chi
sper
manenti
nnat
ure
andi
ncl
udet
heex
erci
seofcont
rol
anddi
scr
eti
on
i
ntheper
for
manceoft
hei
rdul
y.

Sect
ion3.Commi
tt
eesofCooper
ati
ves.TheBy
-
l
awsshal
lpr
ovi
def
ort
hecr
eat
ionoft
hef
oll
owi
ng
commi
tt
ees:

1.Audi
tCommi
tt
ee;

2.El
ect
ionCommi
tt
ee;

3.Medi
ati
onandConci
l
iat
ionCommi
tt
ee;

4.Et
hicsCommi
tt
ee;
and

5.Ot
herCommi
tt
eesasmaybenecessar
yfort
he
conductoft
heaf
fai
rsoft
hecooper
ati
ve.

Themember
sofAudi
tEl
ect
ionCommi
tt
eesshal
l
beel
ect
edbyt
heGener
alAssembl
ywhi
l
ethe
Boar
dofDi
rect
orsshal
lappoi
ntt
her
est
.
Sect
ion4.Funct
ionsandResponsi
bil
i
tiesoft
he
Of
fi
cer
soft
heCooper
ati
ve.

4.
1Boar
dofDi
rect
ors.

4.
1.1TheBoar
dofDi
rect
orsshal
lhav
ethe
f
oll
owi
ngf
unct
ionsandr
esponsi
bil
i
ties:

a.Pr
ovi
degener
alpol
i
cydi
rect
ion;

b.For
mul
atet
hest
rat
egi
cdev
elopmentpl
an;

c.Det
ermi
neandpr
escr
ibet
heor
gani
zat
ional
and
oper
ati
onal
str
uct
ure;

d.Rev
iewt
heAnnual
PlanandBudgetand
r
ecommendf
ort
heappr
oval
oft
he
Gener
al/
Repr
esent
ati
veAssembl
y;
e.Est
abl
i
shpol
i
ciesandpr
ocedur
esf
ort
he
ef
fect
iveoper
ati
onandensur
epr
oper
i
mpl
ement
ati
onofsuch;

f
.Ev
aluat
ethecapabi
l
ityandqual
i
ficat
ionand
r
ecommendedt
otheGener
al/
Repr
esent
ati
ve
Assembl
ytheengagementoft
heser
vicesofan
Ex
ter
nal
Audi
tor
;

g.Appoi
ntt
hemember
soft
he
Medi
ati
on/
Conci
l
iat
ionandEt
hicsCommi
tt
ees
andot
herOf
fi
cer
sasspeci
fi
edi
ntheCodeand
cooper
ati
veBy
-l
aws;

h.Deci
deel
ect
ionr
elat
edcasesi
nvol
vi
ngt
he
El
ect
ionCommi
tt
eeori
tsmember
s;

i
.Actont
her
ecommendat
ionoft
heEt
hics
Commi
tt
eeoncasesi
nvol
vi
ngv
iol
ati
onsofCode
ofGov
ernanceandEt
hical
Standar
ds;
and
j
.Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.

4.
1.2TheChai
rper
sonshal
l
:

a.Sett
heagendaf
oeboar
dmeet
ingsi
n
coor
dinat
ionwi
tht
heot
hermember
soft
heBoar
d
ofDi
rect
ors;

b.Pr
esi
deov
eral
lmeet
ingsoft
heBoar
dof
Di
rect
orsandoft
heGener
al/
Repr
esent
ati
ve
assembl
y;

c.Si
gncont
ract
s,agr
eement
s,cer
ti
fi
cat
esand
ot
herdocument
sonbehal
foft
hecooper
ati
veas
aut
hor
izedbyt
heBoar
dofDi
rect
orsorbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y;

d.I
ssueCer
ti
fi
cat
eofNon-
Aff
il
iat
ionwi
thany
Feder
ati
onorUni
on;
and
e.Per
for
m suchot
herf
unct
ionsasmaybe
aut
hor
izedbyt
heBoar
dofDi
rect
orsorbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.

4.
1.3TheVi
ceChai
rper
sonshal
l
:

a.Per
for
m al
ldut
iesandf
unct
ionsoft
he
Chai
rper
soni
ntheabsenceoft
hel
att
er;

b.Toactasex
-of
fi
cioChai
rper
sonoft
he
Educat
ionandTr
aini
ngCommi
tt
ee;
and

c.Per
for
m suchot
herdut
iesasmaybedel
egat
ed
t
ohi
m/herbyt
heBoar
dofDi
rect
ors.

4.
2Tr
easur
er.TheTr
easur
ershal
l
:

a.Ensur
ethatal
lcashcol
l
ect
ionsar
edeposi
tedi
n
accor
dancewi
tht
hepol
i
ciessetbyt
heBoar
dof
Di
rect
ors;
b.Hav
ecust
odyofal
lfunds,
secur
it
ies,
and
document
ati
on'
srel
ati
ngt
oal
lasset
s,l
i
abi
l
iti
es,
i
ncomeandex
pendi
tur
es;

c.Moni
torandr
evi
ewt
hef
inanci
almanagement
oper
ati
onsoft
hecooper
ati
ve,
subj
ectt
osuch
l
i
mit
ati
onsandcont
rol
asmaybepr
escr
ibedby
t
heBoar
dofDi
rect
ors;

d.Mai
ntai
nful
landcompl
eter
ecor
dsofcash
t
ransact
ions;

e.Mai
ntai
naPet
tyCashFundandDai
l
yCash
Posi
ti
onRepor
t;andPer
for
m suchot
herf
unct
ions
asmaybepr
escr
ibedi
ntheBy
-l
awsoraut
hor
ized
byt
heGener
al/
Repr
esent
ati
veAssembl
y.

4.
3Secr
etar
y.TheSecr
etar
yshal
l
:

a.Keepanupdat
edandcompl
eter
egi
str
yofal
l
member
s;

b.Recor
d,pr
epar
eandmai
ntai
nrecor
dsofal
l
mi
nut
esofmeet
ingsoft
heBoar
dofDi
rect
orsand
t
heGener
al/
Repr
esent
ati
veAssembl
y;

c.Ensur
ethatnecessar
yBoar
dofDi
rect
ors
act
ionsanddeci
sionsar
etr
ansmi
tt
edt
othe
managementf
orcompl
i
anceandi
mpl
ement
ati
on;

d.I
ssueandcer
ti
fyt
hel
i
stofmember
swhoar
ein
goodst
andi
ngent
it
ledt
ovot
easdet
ermi
nedby
t
heBoar
dofDi
rect
ors;

e.Pr
epar
eandi
ssueShar
eCer
ti
fi
cat
es;

f
.Ser
venot
iceofal
lmeet
ingscal
l
edandcer
ti
fy
t
hepr
esenceofquor
um ofal
lmeet
ingsoft
he
Boar
dofDi
rect
orsandt
he
Gener
al/
Repr
esent
ati
veAssembl
y;
g.KeepcopyTr
easur
e'sr
epor
tsandot
herr
epor
ts;

h.Keepandmai
ntai
ntheShar
eandTr
ansf
erBook;

i
.Ser
veascust
odi
anoft
hecooper
ati
veseal
;and

Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/Repr
esent
ati
veAssembl
y.

4.
4El
ect
ionCommi
tt
ee.TheEl
ect
ionCommi
tt
ee
shal
l
:

a.For
mul
ateel
ect
ionr
ulesandgui
del
i
nesand
r
ecommendedt
otheGener
al/
Repr
esent
ati
ve
Assembl
yforappr
oval
;

b.I
mpl
ementel
ect
ionr
ulesandgui
del
i
nesdul
y
appr
ovedbyt
heGener
al/
Repr
esent
ati
ve
Assembl
y;
c.Recommendednecessar
yamendment
stot
he
el
ect
ionr
ulesandgui
del
i
nes,
inconsul
tat
ionwi
th
t
heBoar
dofDi
rect
ors,
fort
he
Gener
al/
Repr
esent
ati
vesAssembl
y'
sappr
oval
;

d.Super
viset
heconduct
,mannerandpr
ocedur
e
ofel
ect
ionandot
herel
ect
ionr
elat
edact
ivi
ti
es
andactont
hechangest
her
eto;

e.Canv
assandcer
ti
fyt
her
esul
tsoft
heel
ect
ion;

f
.Pr
ocl
aimt
hewi
nni
ngcandi
dat
es;

g.Deci
deel
ect
ionandot
herel
ect
ionr
elat
edcases
ex
ceptt
hosei
nvol
vi
ngt
heEl
ect
ionCommi
tt
eeor
i
tsmember
s;and

h.Per
for
m suchot
herf
unct
ionsaspr
escr
ibedi
n
t
heBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.
4.
5Audi
tCommi
tt
ee.Thecommi
tt
eeshal
l
:

a.Moni
tort
headequacyandef
fect
ivenessoft
he
cooper
ati
ve'
smanagementandcont
rol
syst
em;

b.Audi
ttheper
for
manceoft
hecooper
ati
veand
i
tsv
ari
ousr
esponsi
bil
i
tycent
ers;

c.Rev
iewcont
inuousl
yandper
iodi
cal
l
ythebooks
ofaccountandot
herf
inanci
alr
ecor
dst
oensur
e
t
hatt
hesear
einaccor
dancewi
tht
hecooper
ati
ve
pr
inci
plesandgener
all
yaccept
edaccount
ing
pr
ocedur
es;

d.Submi
trepor
tsont
her
esul
toft
hei
nter
nal
audi
t
andr
ecommendnecessar
ychangesonpol
i
cies
andot
herr
elat
edmat
ter
sonoper
ati
ont
othe
Boar
dofDi
rect
orsandGener
al/
Repr
esent
ati
ve
Assembl
y;

e.Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.

4.
6Medi
ati
onandConci
l
iat
ionCommi
tt
ee.The
commi
tt
eeshal
l
:

a.For
mul
ateanddev
elopt
heConci
l
iat
ion-
Medi
ati
onPr
ogr
am andensur
ethati
tispr
oper
ly
i
mpl
ement
ed;

b.Moni
torConci
l
iat
ion-
Medi
ati
onpr
ogr
am and
pr
ocesses;

c.Submi
tsemi
-annual
repor
tsofcooper
ati
ve
casest
otheAut
hor
it
ywi
thi
nfi
ft
een(
15)day
s
af
tert
heendofev
erysemest
er;

d.Acceptandf
il
eEv
aluat
ionRepor
ts;

e.Submi
trecommendat
ionsf
ori
mpr
ovementt
o
t
heBoar
dofDi
rect
ors;
f
.Recommendt
otheBoar
dofDi
rect
orsany
memberoft
hecooper
ati
vef
orConci
l
iat
ion-
Medi
ati
onTr
aini
ngsasCooper
ati
veConci
l
iat
or-
Medi
ator
;

g.I
ssuet
heCer
ti
fi
cat
eofNon-
Set
tl
ement(
CNS)
;

h.Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.

4.
7Et
hicsCommi
tt
ee.Thecommi
tt
eeshal
l
:

a.Dev
elopCodeofGov
ernanceandEt
hical
St
andar
dst
obeobser
vedbyt
hemember
s,
of
fi
cer
sandempl
oyeesoft
hecooper
ati
vesubj
ect
t
otheappr
oval
oft
heBoar
dofDi
rect
orsand
r
ati
fi
cat
ionoft
heGener
al/
Repr
esent
ati
ve
Assembl
y;
b.Di
ssemi
nat
e,pr
omot
eandi
mpl
ementt
he
appr
ovedCodeofGov
ernanceandEt
hical
st
andar
ds;

c.Moni
torcompl
i
ancewi
tht
heCodeof
Gov
ernanceandEt
hical
Standar
dsand
r
ecommendt
otheBoar
dofDi
rect
orsmeasur
est
o
addr
esst
hegap,
ifany
;

d.Conducti
nit
ial
inv
est
igat
ionori
nqui
ryupon
r
ecei
ptofacompl
ainti
nvol
vi
ngCodeof
Gov
ernanceandEt
hical
Standar
dsandsubmi
t
r
epor
ttot
heBoar
dofDi
rect
orst
oget
herwi
tht
he
appr
opr
iat
esanct
ions.

e.Recommendet
hical
rul
esandpol
i
cyt
othe
Boar
dofDi
rect
ors;

f
.Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.
4.
8Ot
herCommi
tt
ees.Ot
herCommi
tt
eest
hatmay
becr
eat
edshal
lassi
sti
nthef
ormul
ati
onof
pol
i
ciesandr
ulesandi
nthei
mpl
ement
ati
onof
t
heser
viceoft
hecooper
ati
ve.Thei
rpower
s,
f
unct
ions,
andr
esponsi
bil
i
tiesshal
lbedef
inedi
n
t
heBy
-l
aws.

4.
9Gener
alManager
.TheGener
alManagershal
l
:

a.Ov
erseet
heov
eral
ldayt
odaybusi
ness
oper
ati
onsoft
hecooper
ati
vebypr
ovi
dinggener
al
di
rect
ion,
super
visi
on,
managementand
admi
nist
rat
ivecont
rol
overal
ltheoper
ati
ng
depar
tment
ssubj
ectt
osuchl
i
mit
ati
onsasmay
besetf
ort
hbyt
heBoar
dofDi
rect
orsort
he
Gener
al/
Repr
esent
ati
veAssembl
y;

b.For
mul
ateandr
ecommendi
ncoor
dinat
ionwi
th
t
heoper
ati
ngdepar
tment
sunderhi
s/her
super
visi
on,
theCooper
ati
ve'
sAnnual
and
Medi
um Ter
m Dev
elopmentPl
an,
progr
amsand
pr
oject
s,f
orappr
oval
oft
heBoar
dofDi
rect
ors
andr
ati
fi
cat
ionoft
heGener
al/
Repr
esent
ati
ve
Assembl
y;

c.I
mpl
ementt
hedul
yappr
ovedpl
ansand
pr
ogr
amsoft
heCooper
ati
veandanyot
her
di
rect
iveori
nst
ruct
ionoft
heBoar
dofDi
rect
ors.

d.Pr
ovi
deandsubmi
ttot
heBoar
dofDi
rect
ors
mont
hlyr
epor
tsont
hest
atusoft
heCooper
ati
ve'
s
oper
ati
onv
is-
à-v
isi
tst
arget
sandr
ecommend
appr
opr
iat
epol
i
cyoroper
ati
onal
changes,
if
necessar
y;

e.Repr
esentt
heCooper
ati
vei
nanyagr
eement
,
cont
ract
,busi
nessdeal
i
ng,
andi
nanyot
her
of
fi
cial
busi
nesst
ransact
ionasmaybeaut
hor
ized
byt
heBoar
dofDi
rect
ors;

f
.Ensur
ecompl
i
ancewi
thal
ladmi
nist
rat
iveand
ot
herr
equi
rement
sofr
egul
ator
ybodi
es;
and

g.Per
for
m suchot
herf
unct
ionsasmaybe
pr
escr
ibedi
ntheBy
-l
awsoraut
hor
izedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.

Sect
ion5.Tr
aini
ngRequi
rement
sfort
heOf
fi
cer
s
oft
heCooper
ati
ve.Of
fi
cer
soft
hecooper
ati
ve
shal
lber
equi
redt
ounder
gonecessar
ytr
aini
ng
conduct
edbycooper
ati
ves,
Feder
ati
onsand/
or
ot
hert
rai
ner
sort
rai
ningi
nst
it
uti
onsdul
y
accr
edi
tedbyt
heAut
hor
it
y.Thet
rai
ningpr
ogr
am
shoul
dcont
aint
hemi
nimum r
equi
rement
sint
he
modul
e/cur
ri
cul
um aspr
escr
ibedbyt
heAut
hor
it
y.
Thei
nit
ial
cour
sesoranyequi
val
entsubst
it
ute
t
her
eofmustbeunder
taken.

A.Boar
dofDi
rect
ors

1.Basi
cCooper
ati
veCour
sepr
imar
il
yon:

a.Ar
ti
clesofCooper
ati
veandBy
-l
aws;

b.Cooper
ati
veVi
sion;
c.Cooper
ati
veMi
ssi
on;

d.Cooper
ati
veSt
rat
egi
cPl
an;

e.Fundament
alsofCooper
ati
ve;

f
.Pol
i
ciesandPr
ogr
amsofCooper
ati
ves;

g.Cooper
ati
veCodeof2008(
RA9520)
;

h.I
mpl
ement
ingRul
esandRegul
ati
onsofRA9520;

2.Cooper
ati
veManagementandGov
ernance.

3.Pol
i
cyDev
elopment
.

4.Fi
nanci
alManagement
.
5.Conf
li
ctManagement
.

6.Par
li
ament
aryPr
ocedur
e

7.Leader
shi
pandVal
uesRe-
ori
ent
ati
on

8.St
rat
egi
cPl
anni
ng

9.Or
ient
ati
ononLaborandOt
herRel
atedLaws

B.Secr
etar
y

1.Basi
cCooper
ati
veCour
se

2.Recor
dsManagementf
orNonFi
nanci
al
Tr
ansact
ion

3.Par
li
ament
aryPr
ocedur
e

4.Basi
cComput
erPr
ogr
am
C.Tr
easur
er

1.Basi
cCooper
ati
veCour
se

2.Recor
dsManagement(
Financi
alTr
ansact
ion)

3.Basi
cAccount
ingf
orNon-
Account
ant
s

4.Cooper
ati
veSt
andar
ds

5.I
nvest
mentandBanki
ngPr
ocedur
es

6.Fi
nanci
alManagement

D.Audi
tCommi
tt
ee

1.Basi
cCooper
ati
veCour
se
2.Audi
tManagement

3.Recor
dsManagement

4.Basi
cAccount
ingf
orNon-
Account
ant

5.Cooper
ati
veSt
andar
ds

6.I
nter
nal
Cont
rol
incl
udi
ngI
nvent
orySy
stem

7.Basi
cComput
erPr
ogr
am

E.El
ect
ionCommi
tt
ee

1.Basi
cCooper
ati
veCour
se

2.Recor
dsManagement

3.Rul
esFor
mul
ati
on
4.Leader
shi
pandVal
ueRe-
ori
ent
ati
on

5.Basi
cComput
erPr
ogr
am

F.Et
hicsCommi
tt
ee

1.Basi
cCooper
ati
veCour
se

2.Leader
shi
pandVal
uesRe-
ori
ent
ati
on

3.Conf
li
ctManagement

4.Recor
dsManagement

5.Basi
cComput
erPr
ogr
am

G.Medi
ati
on/
Conci
l
iat
ionCommi
tt
ee
1.Basi
cCooper
ati
veCour
se

2.Leader
shi
pandVal
uesRe-
ori
ent
ati
on

3.Conf
li
ctManagement

4.Recor
dsManagement

5.Ef
fect
iveCommuni
cat
ion

6.Basi
cComput
erPr
ogr
am

H.Gener
alManager/Chi
efEx
ecut
iveOf
fi
cer

1.Basi
cCooper
ati
veCour
se

2.Cooper
ati
veManagementandGov
ernance

3.Cooper
ati
veSt
andar
ds
4.HumanResour
ceManagement

5.Ef
fect
iveCommuni
cat
ionSki
l
ls

6.Ent
repr
eneur
ial
andBusi
nessManagement
Cour
se

7.Laborandot
herr
elat
edLaws

8.Leader
shi
pandVal
uesRe-
ori
ent
ati
on

9.Comput
erLi
ter
acyCour
se

10.St
rat
egi
cPl
anni
ngandManagement

Sect
ion6.Compl
i
ance.Thet
rai
ningi
srequi
redf
or
al
lcooper
ati
veof
fi
cer
s.I
ncaseswher
ethe
i
ncumbenthasnotunder
gonet
her
equi
red
t
rai
ningpr
ogr
am,
he/
sheshal
lunder
gosuch
t
rai
ningwi
thi
ntwel
ve(
12)mont
hsf
rom t
he
ef
fect
ivi
tyoft
hisRul
e.Non-
compl
i
ancewi
tht
he
r
equi
redt
rai
ningsshal
lbeconsi
der
edgr
oundsf
or
di
squal
i
ficat
ionf
orf
utur
eel
ect
ionorappoi
ntment
unt
ilsucht
imet
hathe/
shehascompl
i
edwi
thal
l
t
het
rai
ningsr
equi
redf
ort
heposi
ti
on.

Sect
ion7.Dur
ati
onofTr
aini
ngsAt
tended.Al
l
t
rai
ningsat
tendedbycooper
ati
veof
fi
cer
sshal
lbe
consi
der
edv
ali
dcompl
i
ancewi
tht
hei
ntentoft
his
Rul
eforaper
iodoff
ive(
5)y
ear
sfr
om dat
eof
i
ssuanceoft
heCer
ti
fi
cat
eofTr
aini
ng.Af
terwhi
ch,
t
heyshal
lber
equi
redt
ounder
gor
e-t
rai
ningoft
he
same.

Sect
ion8.Tr
ansi
tor
yPer
iod.Al
lcooper
ati
vesar
e
her
ebygi
vent
wo(
2)y
ear
sfr
om ef
fect
ivi
tyoft
his
Rul
etocompl
ywi
tht
heTr
aini
ngRequi
rement
sas
pr
ovi
dedabov
e.

RULE8
REPORTSREQUI
REDFORCOOPERATI
VE
Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisr
ule
i
sAr
t.53oft
hisCode,
quot
edasf
oll
ows:

"
Art
.53.Repor
t.

(
1)Ev
erycooper
ati
veshal
ldr
awupr
egul
arr
epor
ts
ofi
tspr
ogr
am ofact
ivi
ti
es,
incl
udi
ngt
hosei
n
pur
suanceoft
hei
rsoci
o-ci
vi
cunder
taki
ngs,
showi
ngt
hei
rpr
ogr
essandachi
evement
satt
he
endofev
eryf
iscal
year
.Ther
epor
tsshal
lbemade
accessi
blet
oit
smember
sofr
ecor
d.These
r
epor
tsshal
lbef
il
edwi
tht
heAut
hor
it
ywi
thi
none
hundr
edt
went
y(120)day
sfr
om t
heendoft
he
cal
endary
ear
.Thef
orm andcont
ent
soft
he
r
epor
tsshal
lbepr
escr
ibedbyt
her
ulesof
Aut
hor
it
y.Fai
l
uret
ofi
l
ether
equi
redr
epor
tsshal
l
subj
ectt
heaccount
abl
eof
fi
cer
/st
ofi
nesand
penal
ti
esasmaybepr
escr
ibedbyt
heAut
hor
it
y,
andshal
lbeagr
oundf
ort
her
evocat
ionof
aut
hor
it
yoft
hecooper
ati
vet
ooper
ateassuch.
Thef
iscal
yearofev
erycooper
ati
veshal
lbet
he
cal
endary
ear
,ex
ceptasmaybeot
her
wise
pr
ovi
dedi
ntheby
-l
aws.

(
2)I
facooper
ati
vef
ail
stomake,
publ
i
shandf
il
e
t
her
epor
tsr
equi
redher
ein,
orf
ail
stoi
ncl
ude
t
her
einanymat
terr
equi
redbyt
hisCode,
the
Aut
hor
it
ywi
thi
nfi
ft
een(
15)day
sfr
om t
he
ex
pir
ati
onoft
hepr
escr
ibedper
iod,
sendsuch
cooper
ati
veawr
it
tennot
icest
ati
ngi
tsnon-
compl
i
anceandt
hecommensur
atef
inesand
penal
ti
est
hatwi
l
lbei
mposedunt
ilsucht
imet
hat
t
hecooper
ati
vehascompl
i
edwi
tht
he
r
equi
rement
."

Sect
ion2.Requi
redRegul
arRepor
ts.Thef
oll
owi
ng
r
epor
tsshal
lsubmi
tt
edt
otheAut
hor
it
y:

1.Cooper
ati
veAnnual
Per
for
manceRepor
t(CAPR)
;

2.Soci
alAudi
tRepor
tincl
udi
ngi
tspr
ogr
am of
act
ivi
ti
esi
npur
suanceofi
tssoci
o-ci
vi
c
under
taki
ngsshowi
ngi
tsachi
evement
sandend
ofev
eryf
iscal
year
;
3.Per
for
manceRepor
t;

4.Audi
tedFi
nanci
alSt
atement
sdul
yst
amped
"
Recei
ved"byt
heBI
R;and

5.Li
stofOf
fi
cer
sandTr
aini
ngsUnder
taken
/
Compl
eted.

Sect
ion3.Addi
ti
onal
Repor
tsf
orFeder
ati
onsand
Uni
ons.Feder
ati
onsandUni
onsshal
lsubmi
tto
t
heAut
hor
it
ythef
oll
owi
ngaddi
ti
onal
repor
ts:

1.Li
stofcooper
ati
veswhi
chhav
eremi
tt
edt
hei
r
r
espect
iveCooper
ati
veEducat
ionandTr
aini
ng
Funds(
CETF)
;

2.Busi
nessconsul
tancyassi
stancet
oincl
udet
he
nat
ureandcost
;and

3.Ot
hert
rai
ningact
ivi
ti
esunder
takenspeci
fyi
ng
t
her
eint
henat
ure,
par
ti
cipant
s,andcostofeach
act
ivi
ty.

Sect
ion4.Fi
l
li
ng.Al
lregi
ster
edcooper
ati
vesshal
l
f
il
ewi
tht
heAut
hor
it
yacopyoft
her
equi
red
r
epor
tsei
thert
hroughper
sonal
,regi
ster
edmai
l
cour
ier
,orel
ect
roni
cmeans,
wit
hinonehundr
ed
t
went
y(120)
day
sfr
om t
heendofev
eryy
ear
cal
endary
ear
.

Sect
ion5.Pr
epar
ati
onoft
heRequi
redRepor
ts.
Ther
epor
tsshal
lbet
ypewr
it
tenorpr
int
edi
na
f
orm pr
escr
ibedbyt
heAut
hor
it
y.TheChai
rper
son
andt
heGener
alManagershal
lcer
ti
fyt
othe
t
rut
hful
nessoft
hest
atementcont
ainedi
nthe
r
epor
ts.

Sect
ion6.Pr
epar
ati
onoft
heSubmi
tRepor
tson
Ti
me.Fai
l
uret
osubmi
trepor
tsont
imeshal
lbe
consi
der
edasDel
ayorDef
aul
t.Howev
er,
ift
he
f
ail
uret
osubmi
trepor
tsont
imei
sduet
o
f
ort
uit
ousev
ent
s;suchasf
ir
eandot
hernat
ural
cal
ami
ti
esandpubl
i
cdi
sor
der
sincl
udi
ngst
ri
keor
l
ock-
outoranat
ional
emer
gencywhi
chaf
fect
s
t
heoper
ati
onoft
hecooper
ati
ve,
thef
ail
ureshal
l
notbeconsi
der
edadel
ay.Pr
ovi
ded,
Thatt
he
Aut
hor
it
yshal
lbeof
fi
cial
l
ynot
if
iedoft
he
occur
renceofsuchf
ort
uit
ousev
ent
s.

Del
ayordef
aul
tshal
lcommenceont
heday
f
oll
owi
ngt
hel
astdayr
equi
redf
ort
hesubmi
ssi
on
ofr
epor
ts.Howev
er,
shoul
dthel
astdayoff
il
ing
f
all
sonanon-
wor
kingdayi
nthel
ocal
i
tywher
ethe
r
epor
ti
ngcooper
ati
vei
ssi
tuat
ed.Del
ayorDef
aul
t
shal
lst
artt
orun\
ont
hedayf
oll
owi
ngt
henex
t
wor
kingday
.

Fort
hepur
poseofest
abl
i
shi
ngDel
ayorDef
aul
t,
t
hedat
eofacknowl
edgementbyt
heAut
hor
it
y
appear
ingont
hecopi
esofsuchr
epor
tsf
il
edor
submi
tt
edormai
l
ingpost
mar
kedont
he
env
elope/
thedat
eofr
egi
str
yorspeci
aldel
i
ver
y
r
ecei
pt,
ort
hedat
etheel
ect
roni
cmai
lwassentas
t
hecasemaybeshal
lbeconsi
der
edast
hedat
e
off
il
ing.
Sect
ion7.Sanct
ionForDel
ayedSubmi
ssi
on.
Fai
l
uret
ofi
l
ether
equi
redr
epor
tsont
imeshal
l
subj
ectt
heAccount
abl
eOf
fi
cert
opayaf
ineof
Php100.
00perdayofdel
ay.

Wi
thi
nthi
rt
y(30)cal
endarday
suponr
ecei
ptof
St
atementofAccount
s,t
heAccount
abl
eOf
fi
cer
mayr
equestf
orReconsi
der
ati
onofsuchf
ineon
t
hegr
oundsoff
ort
uit
ousev
entandcour
t
l
i
tigat
ion/
order
,whi
cht
heAut
hor
it
yshal
lactupon
wi
thi
nsi
xty(
60)cal
endarday
sot
her
wiset
he
sanct
ions,
shal
lbedeemedl
i
fted.Thedeci
sionof
t
heAut
hor
it
yshal
lbecomef
inal
andex
ecut
ory
.

Ot
hert
hant
hei
mposi
ti
onofmonet
arypenal
ti
es,
t
heAut
hor
it
ymaydi
ssol
ve/
rev
oke,
aft
erdue
pr
ocess,
theaut
hor
it
yoft
hecooper
ati
vet
o
oper
ateassuch.

RULE9
GUI
DELI
NESFORTHELI
QUI
DATI
ONOF
COOPERATI
VES
Sect
ion1.Legal
Basi
s.Thel
egal
basesf
ort
he
Rul
ear
eAr
t.69,
70andpar
.2,
Art
.72(
4)oft
he
code,
quot
edasf
oll
ows:

"
Art
.69.Li
qui
dat
ionofaCooper
ati
ve.-Ev
ery
cooper
ati
vewhosechar
terex
pir
esbyi
tsown
l
i
mit
ati
onorwhoseex
ist
encei
ster
minat
edby
v
olunt
arydi
ssol
uti
onort
hroughanappr
opr
iat
e
j
udi
cial
proceedi
ngshal
lnev
ert
hel
esscont
inuet
o
ex
istf
ort
hree(
3)y
ear
saf
tert
het
imei
tis
di
ssol
ved,
nott
ocont
inuet
hebusi
nessf
orwhi
ch
wasest
abl
i
shedbutf
ort
hepur
poseof
pr
osecut
inganddef
endi
ngsui
tsbyoragai
nsti
t;
set
tl
ement
6andcl
osur
eofi
tsaf
fai
rs,
disposi
ti
on,
conv
eyanceanddi
str
ibut
ionofi
tspr
oper
ti
esand
asset
.

Atanyt
imedur
ingt
hesai
dthr
ee(
3)y
ear
s,t
he
cooper
ati
vei
saut
hor
izedandempower
edt
o
conv
eyal
li
tspr
oper
ti
est
otr
ust
eesf
ort
hebenef
it
ofi
tsmember
s,cr
edi
tor
sandot
herper
sonsi
n
i
nter
est
.Fr
om andaf
teranysuchconv
eyance,
all
i
nter
est
swhi
cht
hecooper
ati
vehadi
nthe
pr
oper
ti
esar
eter
minat
ed.

Upont
hewi
ndi
ngupt
hecooper
ati
veaf
fai
rs,
any
6
assetdi
str
ibut
abl
etoanycr
edi
tor
,shar
ehol
deror
member
(s)whoi
sunknownorcannotbef
ound
shal
lbegi
vent
othef
eder
ati
onoruni
ont
owhi
ch
t
hecooper
ati
vei
saf
fi
li
atedwi
th.

Acooper
ati
veshal
lonl
ydi
str
ibut
eit
sasset
sor
pr
oper
ti
esuponunl
awf
uldi
ssol
uti
onandaf
ter
pay
mentofal
li
tsdebt
sandl
i
abi
l
iti
es,
excepti
n
t
hecaseofdecr
easeofshar
ecapi
tal
oft
he
cooper
ati
veandasot
her
wiseal
l
owedbyt
his
Code.
"

"
Art
.70.Rul
esandRegul
ati
onsonLi
qui
dat
ion.-
TheAut
hor
it
yshal
li
ssuet
heappr
opr
iat
e
i
mpl
ement
inggui
del
i
nesf
ort
hel
i
qui
dat
ionof
cooper
ati
ves.
"

"
Art
.72.Capi
tal
Sour
ces.
-xx
x
(
b)Subsi
dies,
donat
ions,
legaci
es,
grant
s,ai
dsand
suchot
herassi
stancef
rom anyl
ocal
orf
orei
gn
i
nst
it
uti
onwhet
herpubl
i
corpr
ivat
e:Pr
ovi
ded,
Thatcapi
tal
comi
ngf
rom suchsubsi
dies,
donat
ions,
legaci
es,
grant
s,ai
dsandot
her
assi
stanceshal
lnotbedi
vi
dedi
ntoi
ndi
vi
dual
shar
ecapi
tal
hol
dingatanyt
imebutshal
li
nst
ead
f
rom par
toft
hedonat
edcapi
tal
orf
undoft
he
cooper
ati
ve.

Upondi
ssol
uti
on,
suchdonat
edcapi
tal
shal
lbe
subj
ectt
oescheat
."

Sect
ion2.Cov
erageofLi
qui
dat
ion.These
Gui
del
i
nesshal
lcov
ert
hef
oll
owi
ng:

1.Cooper
ati
veswhosechar
terex
pir
esbyi
tsown
l
i
mit
ati
on.

2.Cooper
ati
veswhoseex
ist
encei
ster
minat
edby
v
olunt
arydi
ssol
uti
on.
3.Cooper
ati
veswhoseex
ist
encei
ster
minat
edby
appr
opr
iat
ejudi
cial
proceedi
ngs.

Sect
ion3.ModeofLi
qui
dat
ion.Themannerof
l
i
qui
dat
ionorwi
ndi
ngupmaybepr
ovi
dedf
ori
n
t
hecooper
ati
veBy
-l
awsandt
hiswoul
dpr
evai
l
unl
essi
tisi
nconsi
stentwi
thl
aw.I
nthi
s
j
uri
sdi
cti
on,
thecooper
ati
vemayav
ail
oft
he
f
oll
owi
ngmodesofl
i
qui
dat
ion:

(
1)Li
qui
dat
ionbycooper
ati
vei
tsel
fthr
ougha
Boar
dofLi
qui
dat
ors.Themember
sofcooper
ati
ve
ent
it
ledt
ovot
eshal
lel
ectf
rom among
t
hemsel
vest
hei
rBoar
dLi
qui
dat
ors;
and/
or

Byconv
eyi
ngal
lthecooper
ati
veasset
stoTr
ust
ee
orTr
ust
eeswhowi
l
ltakechar
geofl
i
qui
dat
ion.

Sect
ion4.Pr
ocedur
eofLi
qui
dat
ion.Thef
oll
owi
ng
pr
ocedur
eshal
lbeobser
vedi
nli
qui
dat
ion:
1.Const
it
uti
onoft
heBoar
dof
Li
qui
dat
ors/
Trust
ees.

2.I
nvent
oryofAsset
sandLi
abi
l
iti
esoft
he
Cooper
ati
ve.

3.Pay
ment
sofCr
edi
tor
sinaccor
dancewi
tht
he
Pr
ovi
sionsoft
heNewCi
vi
lCodeont
he
Pr
efer
enceandConcur
renceofCr
edi
ts.

4.Tr
ansf
eroft
heSt
atut
oryFundst
othei
ntended
benef
ici
ari
es.

5.Di
str
ibut
ionoft
her
emai
ningasset
s.

6.Submi
ssi
onoft
heBoar
dof
Li
qui
dat
ors/
Trust
eesoft
heLi
qui
dat
ion'
sFi
nal
Repor
t.

7.Cancel
l
ati
onoft
heCer
ti
fi
cat
esofRegi
str
ati
on
anddel
i
sti
ngoft
henameoft
hecooper
ati
vei
nthe
Cooper
ati
veRegi
str
y.

Sect
ion5.Boar
dofLi
qui
dat
ors/
Trust
ees.

Wi
thi
nsi
xty(
60)day
sfr
om r
ecei
ptoft
heOr
derof
Di
ssol
uti
onf
rom t
heAut
hor
it
yorcompet
entCour
t,
t
heboar
dofDi
rect
orsshal
lsel
ect
/const
it
utet
he
Boar
dofLi
qui
dat
ors/
Trust
ees.I
ntheev
entt
he
Boar
dofDi
rect
orsf
ail
sorr
efusest
oconst
it
ute
t
heBoar
dofLi
qui
dat
ors/
Trust
ees,
atl
eastt
went
y
f
iveper
cent(
25%)oft
hemember
sent
it
ledt
ovot
e
shal
lconv
eneandsel
ect
/appoi
ntt
he
Li
qui
dat
ors/
Trust
ees.I
ncaset
heBoar
dof
Di
rect
orsandt
heGener
al/
Repr
esent
ati
ve
Assembl
yfai
ltosel
ectt
heBoar
dof
Li
qui
dat
ors/
Trust
ees,
theAut
hor
it
yshal
lappoi
nt
t
hesame.

TheBoar
dofLi
qui
dat
ors/
Trust
eesshal
lnotbe
l
esst
hant
hree(
3)butnotmor
ethanf
ive(
5)
member
s.Theyshal
ltaket
hei
roat
hofof
fi
ce
bef
oret
heAut
hor
it
ypr
iort
oassumpt
ionoft
hei
r
f
unct
ionsandr
esponsi
bil
i
ties.

TheBoar
dofLi
qui
dat
ors/
Trust
eesshal
lpostan
adequat
ebondasmaybef
ixedbyt
heAut
hor
it
y
dur
ingt
heper
iodofl
i
qui
dat
ion,
tobepai
doutof
t
hef
undsoft
hecooper
ati
ve.

TheBoar
dofLi
qui
dat
ors/
Trust
eesshal
lbe
al
l
owedt
orecei
vear
easonabl
ehonor
ari
um t
obe
pai
doutf
rom t
hef
undsoft
hecooper
ati
vewhi
ch
shal
lbeequal
tobutnotl
esst
hant
hehonor
ari
um
bei
ngr
ecei
vedbyt
heBoar
dofDi
rect
orsoft
he
cooper
ati
vebef
orei
tsdi
ssol
uti
on.

Sect
ion6.Funct
ions,
Power
sandObl
i
gat
ionsof
t
heBoar
dofLi
qui
dat
ors/
Trust
ees.TheBoar
dof
Li
qui
dat
ors/
Trust
eesshal
l
:

1.Makeani
nvent
oryofal
lasset
sandt
obe
det
ermi
neal
ll
iabi
l
iti
esi
ncl
udi
ngShar
eCapi
tal
hol
dings;
2.Pr
eser
vet
heex
ist
ingasset
soft
hecooper
ati
ve;

3.Conv
ertal
lasset
soft
hecooper
ati
vei
ntocash;

4.Payt
heout
standi
ngobl
i
gat
ionsi
ncl
udi
ngany
andal
lval
i
dcl
aimsagai
nstt
hecooper
ati
ve;

5.Di
str
ibut
eremai
ningasset
spur
suantt
othe
pr
ovi
sionoft
heCodeandt
hisRul
es;
and

6.Makef
inal
repor
tont
hel
i
qui
dat
ionandsubmi
t
t
hesamet
otheAut
hor
it
y.

Sect
ion7.Powert
oSueandBeSued.I
nthe
di
schar
geoft
heabov
e-ment
ionedf
unct
ions,
the
Boar
dofLi
qui
dat
ors/
Trust
eesmaysueandbe
suedundert
henameoft
hecooper
ati
vei
nor
der
t
opr
otect
sanddef
endi
tsr
ight
sandi
nter
est
s.

Sect
ion8.Pay
mentofCr
edi
tor
s.Pay
mentof
cr
edi
tor
sshal
lbei
naccor
dancewi
tht
hecont
ract
uponwhi
chi
tisbasedandt
hepr
ovi
sionoft
he
NewCi
vi
lCodeont
hePr
efer
enceand
Concur
renceofCr
edi
ts.

Sect
ion9.St
atut
oryFunds.Al
lthest
atut
oryf
unds
est
abl
i
shedbyt
hecooper
ati
veshal
lbedi
sposed
ofi
naccor
dancewi
tht
hepr
ovi
sionf
orAr
t.86of
t
heCode.

Sect
ion10.Tr
eat
mentofDonat
edCapi
tal
.Al
l
st
udi
es,
donat
ions,
legaci
es,
grant
s,ai
dsandsuch
ot
herassi
stancef
rom anyl
ocal
orf
orei
gn
i
nst
it
uti
onswhet
herpubl
i
corpr
ivat
eshal
lbe
subj
ect
edt
oescheat
.

Sect
ion11.Di
str
ibut
ionofAsset
s.Subj
ectt
othe
pr
ecedi
ngsect
ionsanduponwr
it
tenaut
hor
it
y
f
rom t
heAut
hor
it
y,anyasset
sremai
ningaf
tert
he
pay
ment
soft
hecooper
ati
ve'
sobl
i
gat
ionst
oit
s
cr
edi
tor
sshal
lbedi
str
ibut
edt
othemember
sin
pay
ment
soft
hei
rrespect
iveshar
ecapi
tal
.Ift
he
r
emai
ningasset
sisnotsuf
fi
cientt
opayt
hef
ull
shar
ecapi
tal
cont
ri
but
ionoft
hemember
s,t
he
di
str
ibut
ionshal
lbedonei
npr
opor
ti
ont
othei
r
capi
tal
.

Sect
ion12.Undi
str
ibut
edAsset
s.Af
tert
he
wi
ndi
ngupoft
heaf
fai
rsoft
hecooper
ati
ve,
the
asset
sdi
str
ibut
abl
etocr
edi
torormemberwhose
wher
easabouti
sunknownorcannotbef
ound
shal
lbegi
vent
othef
eder
ati
on/
uni
ont
owhi
cht
he
cooper
ati
vei
saf
fi
li
atedwi
th,
forcooper
ati
ve
dev
elopment
,att
heopt
ionoft
heBoar
dof
Li
qui
dat
ors/
Trust
ees.I
ncaseofnon-
aff
il
iat
ion,
t
heundi
str
ibut
edasset
sshal
lbegi
vent
othe
communi
tywher
ethecooper
ati
veoper
ated.

Sect
ion13.Per
iodsAl
l
owedf
ort
heWi
ndi
ngUpof
t
heAf
fai
rsoft
heCooper
ati
ve.Thedi
ssol
ved
cooper
ati
veshal
lcont
inuet
oex
istf
ort
hree(
3)
y
ear
sfr
om t
hei
ssuanceoft
heOr
derof
Di
ssol
uti
on.Thepur
poseofwhi
chi
snott
o
cont
inuet
hebusi
nessf
orwhi
chi
twasest
abl
i
shed
butf
orpur
poseofpr
osecut
inganddef
endi
ng
sui
tsf
il
edoragai
nstt
hecooper
ati
ve,
set
tl
ement
andcl
osur
eofi
tsaf
fai
rs,
dist
ri
but
ionofi
tsasset
s.
Nev
ert
hel
ess,
atanyt
imedur
ingt
hesai
dthr
ee(
3)
y
earper
iod,
thecooper
ati
vei
saut
hor
izedand
empower
edt
oconv
eyal
li
tspr
oper
ti
est
o
Tr
ust
eesf
ort
hebenef
it
sofi
tsmember
s,cr
edi
tor
s
andot
herper
sonsi
nint
erest
,af
terwhi
ch,
all
i
nter
estwhi
cht
hecooper
ati
vehadi
npr
oper
ti
es
ar
eter
minat
ed.

Sect
ion14.Submi
ssi
onoft
heBoar
dof
Li
qui
dat
ors/
Trust
ees'
Financi
alRepor
t.The
Cooper
ati
veBoar
dofLi
qui
dat
ors/
Trust
eesshal
l
submi
taf
inal
repor
ttot
hemember
soft
he
l
i
qui
dat
edcooper
ati
veandt
otheAut
hor
it
y,
Feder
ati
on,
orUni
ont
owhi
cht
hecooper
ati
vei
s
af
fi
li
atedwi
th.

Uponr
ecei
ptoft
heFi
nal
Repor
toft
heBoar
dof
Li
qui
dat
ors/
Trust
eesandf
indi
ngt
hatsai
dfi
nal
r
epor
tiscompl
eteandi
nor
der
,theAut
hor
it
yshal
l
r
eleaset
heLi
qui
dat
ors/
Trust
eesf
rom t
hei
rdut
ies
andf
unct
ions.Ther
eaf
tershal
lef
fectt
he
cancel
l
ati
onoft
heCer
ti
fi
cat
eofRegi
str
ati
onof
t
hesubj
ectcooper
ati
veanddel
i
sti
ngoft
hename
oft
hecooper
ati
vei
ntheCooper
ati
veRegi
str
y.

Forf
ail
uret
osubmi
ttheFi
nal
Repor
ttheBoar
dof
Li
qui
dat
ors/
Trust
eesshal
lnotber
eleasedf
rom
t
hei
rdut
iesandf
unct
ions,
hencenocl
ear
ance
shal
lbei
ssuedbyt
heAut
hor
it
y.

Sect
ion15.Summar
yPr
oceedi
ngs.For
cooper
ati
vewi
thasset
sofnotmor
ethatOne
Hundr
edThousandPesos(
P100,
000.
00)as
showni
ntheAudi
tedFi
nanci
alSt
atement
sand
wi
thnoknowncr
edi
tor
s,t
heAut
hor
it
ymay
chooset
oini
ti
atesummar
ypr
oceedi
ngs.

Thef
oll
owi
ngdocument
sshal
lber
equi
redt
obe
submi
tt
edbyt
heBoar
dofDi
rect
orst
othe
Aut
hor
it
y:

1.Schedul
eofAsset
s;
2.Pr
oposal
ofDi
str
ibut
ionofAsset
stoi
ts
member
s;

3.Li
stofi
ntendedbenef
ici
ari
esoft
heSt
atut
ory
Funds;

4.Af
fi
dav
itofNoCr
edi
tor
s;and

5.Audi
tedFi
nanci
alSt
atement
;

Af
terdueev
aluat
ionbyt
heAut
hor
it
y,t
hesame
shal
li
ssuesawr
it
tenaut
hor
it
ytot
heBoar
dof
Di
rect
orst
odi
str
ibut
edt
heasset
soft
he
cooper
ati
ve.Af
terwhi
ch,
theBoar
dofDi
rect
ors
shal
lsubmi
taf
inal
repor
t.

Sect
ion16.Suppl
etor
yLaws.Thepr
ovi
sionsof
Chapt
erTwo(
2)andThr
ee(
3)oft
it
le19ont
he
Concur
renceandPr
efer
enceofCr
edi
tundert
he
NewCi
vi
lCodeandt
hepr
ovi
sionsofRul
e104of
t
heRev
isedRul
esofCour
tont
heVol
unt
ary
Di
ssol
uti
onofCor
por
ati
onsshal
lbeusedas
suppl
etor
yrul
es.

Sect
ion17.Ex
cept
ion.TheAut
hor
it
y,ati
tsown
di
scr
eti
on,
mayout
ri
ght
lycancel
theCer
ti
fi
cat
eof
Regi
str
ati
onofacooper
ati
onofacooper
ati
ve
whi
chhasbeenpr
ovent
ohav
enoasset
s,ori
n
caset
hecooper
ati
vecannol
ongerbel
ocat
ed
despi
tet
hebestt
olocat
eit
.Suchf
act
sshal
lbe
st
atedi
ntheOr
derofCancel
l
ati
on.

RULE10
CAPI
TALI
ZATI
ONANDACCOUNTI
NG
PROCEDURESOFCOOPERATI
VES

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
his
Rul
eisAr
t.71oft
heCode,
quot
edasf
oll
ows:

"
Art
.71.Capi
tal
.-TheCapi
tal
i
zat
ionof
cooper
ati
vesandt
heaccount
ingpr
ocedur
esshal
l
begov
ernedbyt
hepr
ovi
sionsoft
hisCodeand
t
her
egul
ati
onswhi
chshal
lbei
ssued.
"
Sect
ion2.Capi
tal
Sour
ces.Capi
tal
i
zat
ionofadul
y
r
egi
ster
edcooper
ati
vemaybeder
ivedf
rom anyor
al
loft
hef
oll
owi
ngsour
ces;

1.Member
s'Shar
eCapi
tal
;

2.LoansandBor
rowi
ngI
ncl
udi
ngDeposi
ts;

3.Rev
olv
ingCapi
tal
whi
chconsi
stoft
hedef
err
ed
pay
mentofpat
ronager
efunds,
ori
nter
eston
shar
ecapi
tal
;and

4.Subsi
dies,
donat
ions,
legaci
es,
grant
s,ai
dsand
suchot
herassi
stancef
rom anyl
ocal
orf
orei
gn
i
nst
it
uti
onwhet
herpubl
i
corpr
ivat
e;Pr
ovi
ded,
Thatcapi
tal
comi
ngf
rom suchsubsi
dies,
donat
ions,
legaci
es,
grant
s,ai
dsandot
her
assi
stanceshal
lnotbedi
vi
dedi
ntoi
ndi
vi
dual
shar
ecapi
tal
hol
dingsatanyt
imebutshal
l
i
nst
eadf
orm par
toft
hedonat
edcapi
tal
orf
undof
t
hecooper
ati
ve.
Sect
ion3.Shar
eCapi
tal
.TheShar
eCapi
tal
ofa
cooper
ati
ve,
theperv
alueofwhi
chmaybef
ixed
atanyf
igur
enotmor
ethanOneThousandPesos
(
P1,
000.
00)
,mayconsi
stofcommonshar
ecapi
tal
andpr
efer
redshar
ecapi
tal
ift
hel
att
eri
spr
ovi
ded
f
orundert
hecooper
ati
ve'
sAr
ti
clesofCooper
ati
on
andBy
-l
aws.Theshar
ecapi
tal
cont
ri
but
ionoft
he
member
sshal
lbeconsi
der
edasequi
ty.Pr
ovi
ded,
t
hati
tshal
lnotbewi
thdr
awnandshoul
dnotbe
usedi
nof
fset
ti
ngobl
i
gat
ionswhet
herpastdueor
cur
rentwhi
l
ethemember
shi
psubsi
sts.

(
a)CommonShar
eCapi
tal
shal
lbei
ssuedonl
yto
r
egul
armember
s.I
tshol
der
sshal
lbeent
it
ledt
o
v
oteandbev
otedundert
hepr
inci
pleofone-
man,
onev
otepr
inci
ple,
andshal
lrecei
vei
nter
est
,the
r
atewhi
chshoul
dnotex
ceededt
henor
mal
rat
e
oni
nvest
ment
.

(
b)Pr
efer
redShar
eCapi
tal
maybei
ssuedt
o
r
egul
arandassoci
atemember
s.Howev
er,
associ
ateMember
sshal
lnotbeel
i
gibl
etov
ote
norbev
otedonaccountofsuchshar
ehol
dings
butshal
lbeent
it
ledt
o,amongot
her
sthe
f
oll
owi
ng:

1.Pr
efer
encei
nthepay
mentofi
nter
estas
pr
ovi
dedf
ori
ntheBy
lawsoft
hecooper
ati
ve;
and

2.I
ncaseofl
i
qui
dat
ion,
pri
ori
tyi
nthedi
str
ibut
ion
onPr
efer
redShar
eCapi
tal
shal
lbepr
escr
ibedi
n
t
heBy
-l
awsoft
hecooper
ati
ve.

Sect
ion4.Pr
efer
redShar
es.I
ssuanceand
l
i
mit
ati
ononPr
efer
redShar
eCapi
tal
shal
lbe
pr
escr
ibedi
ntheBy
-l
awsoft
hecooper
ati
ve.

Sect
ion5.Capi
tal
Bui
l
d-Up.TheBy
-l
awsofev
ery
cooper
ati
veshal
lpr
ovi
def
orar
easonabl
eand
r
eal
i
sti
cmembercapi
tal
bui
l
d-uppr
ogr
am t
oal
l
ow
t
hecont
inui
nggr
owt
hoft
hemember
s'i
nvest
ment
i
nthei
rcooper
ati
veast
hei
rowneconomi
c
condi
ti
onscont
inuet
oimpr
ove.
Sect
ion6.Li
mit
ati
ononShar
eCapi
tal
Hol
dings.
Nomemberofapr
imar
ycooper
ati
veot
hert
hata
cooper
ati
vei
tsel
fshal
lownorhol
dmer
ethant
en
per
cent(
10%)oft
heshar
ecapi
tal
oft
he
cooper
ati
ve.I
nthecaseofSecondar
yandTer
ti
ary
Cooper
ati
ves,
member
sshoul
downnotmor
ethat
t
enper
cent(
10%)oft
heshar
ecapi
tal
oft
he
cooper
ati
ve.

Sect
ion7.Fi
nesonUnpai
dSubscr
ibedShar
e
capi
tal
.TheBy
-l
awsofacooper
ati
veshal
l
pr
escr
ibeaf
ineonunpai
dsubscr
ibedshar
e
capi
tal
.Pr
ovi
ded,
thatsuchf
inei
sfai
rand
r
easonabl
eundert
heci
rcumst
ancesas
det
ermi
nedbyt
heBoar
dofDi
rect
ors.

Sect
ion8.Assi
gnmentofShar
eCapi
tal
Cont
ri
but
ionorI
nter
est
.Subj
ectt
othepr
ovi
sion
ofR.
A.9520,
nomembershal
ltr
ansf
erhi
s/her
shar
esori
nter
esti
nthecooper
ati
veoranypar
t
t
her
eofunl
ess:

1.He/
Shehashel
dsuchshar
ecapi
tal
cont
ri
but
ion
ori
nter
estf
ornotl
esst
hanone(
1)y
ear
;

2.Theassi
gnmenti
smadet
othecooper
ati
veor
t
oaper
sonwhof
all
swi
thi
nthef
iel
dof
member
shi
poft
hecooper
ati
ve;
and

3.TheBoar
dofDi
rect
orshasappr
ovedsuch
assi
gnment
.

Sect
ion9.I
nter
estonShar
eCapi
tal
.Int
ereston
Shar
eCapi
tal
shal
lnotex
ceedt
heRat
eofRet
urn
onI
nvest
ment
.

Unl
essot
her
wisepr
ovi
dedf
ori
ntheBy
-l
awsoft
he
cooper
ati
ve,
shar
ecapi
tal
shal
lear
nint
erest
;the
Rat
eofI
nter
estshal
lbecomput
edasf
oll
ows:
Rat
e
ofI
nter
est = X(
NetSur
plusl
essSt
atut
ory
Reser
ves)
Tot
alAv
erageShar
eMont
h
Wher
e:Xshal
lbeaper
cent
aget
obedet
ermi
ned
byt
heBoar
dofDi
rect
orsal
l
ocat
edf
ori
nter
eston
shar
ecapi
tal
.

Noal
l
ocat
ionofi
nter
estonshar
ecapi
tal
shal
lbe
madewi
thoutt
heappr
oval
oft
heBoar
dof
Di
rect
orswhi
chmayi
ncr
easeordecr
easeanyor
bot
h.

Pay
mentofi
nter
est
,unl
essot
her
wisepr
ovi
dedf
or
i
ntheBy
-l
aws,
mustbemadeonsuchdat
easmay
bedet
ermi
nedbyt
heBoar
dofDi
rect
ors.The
Gener
al/
Repr
esent
ati
veAssembl
y',
owev
er,
upon
t
her
ecommendat
ionoft
heBoar
dofDi
rect
ors,
maydef
ert
hepay
mentofsuchi
nter
esti
ncl
udi
ng
Pat
ronageRef
undt
orai
seRev
olv
ingCapi
tal
.

Nocumul
ati
vei
nter
estshal
lbeal
l
owedf
orany
ki
ndorcl
assofshar
eissuedbyt
hecooper
ati
ve.

Shar
eCapi
tal
shal
lrecei
veast
ri
ctl
yli
mit
edRat
eof
I
nter
est
.
Sect
ion10.Wi
thdr
awal
ofShar
eCapi
tal
.A
memberofacooper
ati
vemay
,foranyv
ali
d
r
eason,
wit
hdr
awhi
s/hermember
shi
pfr
om t
he
cooper
ati
vebygi
vi
ngasi
xty(
60)day
snot
icet
o
t
heBoar
dofDi
rect
ors.Subj
ectt
otheBy
-l
awsof
t
hecooper
ati
ve,
thewi
thdr
awi
ngmembershal
lbe
ent
it
ledt
oar
efundofhi
s/hershar
ecapi
tal
cont
ri
but
ionandal
lot
heri
nter
est
sint
he
cooper
ati
ve.Pr
ovi
ded,
Thatsuchr
efundshal
lnot
bemadei
fuponsuchpay
mentt
hev
alueoft
he
asset
soft
hecooper
ati
vewoul
dbel
esst
hant
he
aggr
egat
eamountofi
tsdebt
sandl
i
abi
l
iti
es
ex
clusi
veofhi
s/hershar
ecapi
tal
cont
ri
but
ion.

Sect
ion11.Pat
ronageRef
und.Thepr
inci
pleof
Pat
ronageRef
undi
sapr
inci
pleofaequi
ty
wher
einanequal
rightofmember
stopar
ti
cipat
e
i
ntheor
gani
zat
ionandt
oequi
tabl
yshar
eint
he
benef
it
saccr
uingi
sest
abl
i
shed.Undert
he
pr
inci
ple,
theNetSur
plusshal
lnotbeconst
rued
aspr
ofi
t,butasex
cesspay
ment
smadebyt
hem
f
rom t
hecooper
ati
veandwhi
chshal
lbedeemed
t
ohav
ebeenr
etur
nedt
othem i
fthesamei
s
di
str
ibut
edaspr
escr
ibedbyt
heCodeandbyt
his
Rul
e.Pr
ovi
ded,
howev
er,
Thatt
heamount
al
l
ocat
edf
orpat
ronager
efundshal
lnotbel
ess
t
hant
hir
typer
cent(
30%)oft
henetsur
plusaf
ter
deduct
ingt
hest
atut
oryr
eser
vesbasedont
he
pr
inci
pleofequi
ty.Pr
ovi
ded,
fur
ther
,thati
nno
caseshal
lther
ateofpat
ronager
efundbemor
e
t
hant
wicet
her
ateofi
nter
estonshar
ecapi
tal
.

Sect
ion12.Account
ingPr
ocedur
e.Theaccount
ing
sy
stem t
obei
nst
all
ed/
mai
ntai
nedi
nthe
cooper
ati
veshal
lbei
naccor
dancewi
tht
he
gener
all
yaccept
edaccount
ingpr
inci
plesand
pr
act
ices,
taki
ngi
ntoconsi
der
ati
oncooper
ati
ve
pr
inci
plesandpr
act
ices.Thecooper
ati
veshal
l
uset
heSt
andar
dChar
tofAccount
sandi
ts
accompany
ingAccount
ingManual
prescr
ibedby
t
heAut
hor
it
y.

RULE11
SOCI
ALAUDI
TOFCOOPERATI
VE
Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.80,
par
agr
aph4,
5and6oft
heCode,
quot
edasf
oll
ows:

"
Art
.80.Annual
Audi
t.-Cooper
ati
vesr
egi
ster
ed
undert
hisCodeshal
lbesubj
ectt
oanannual
f
inanci
al,
per
for
manceandsoci
alaudi
t.
"

"
Thesoci
alaudi
tshal
lbeconduct
edbyan
i
ndependentsoci
alaudi
toraccr
edi
tedbyt
he
Aut
hor
it
y."

"
TheAut
hor
it
yinconsul
tat
ionwi
tht
hecooper
ati
ve
sect
or,
shal
lpr
omul
gat
edt
her
ulesandst
andar
ds
f
ort
hesoci
alaudi
tofcooper
ati
ves.
"

Sect
ion2.Cov
erage.Al
lregi
ster
edcooper
ati
ves
r
egar
dlessoft
ypesandcat
egor
iesshal
lbe
subj
ectt
osoci
alaudi
t.

Sect
ion3.Soci
alAudi
t.I
tisapr
ocedur
ewher
ethe
cooper
ati
veassessesi
tssoci
ali
mpactandet
hical
per
for
mancev
is-
à-v
isi
tsst
atedmi
ssi
on,
visi
on,
goal
sandcodeofsoci
alr
esponsi
bil
i
ty.I
tisa
pr
ocesst
oassesst
hecooper
ati
ve'
scont
ri
but
ion
f
ort
heupl
i
ftmentoft
hest
atusnotonl
ytoi
ts
member
s'economi
cneedsbutal
sosoci
alneeds
andt
hecommuni
tywher
eitoper
ates.The
cooper
ati
ve'
sact
ual
per
for
manceand
accompl
i
shmentar
ecompar
edt
oit
svi
sion,
goal
s,
andsoci
alr
esponsi
bil
i
tyasi
trel
atest
othei
mpact
notonl
ytot
hecommuni
tybutt
oit
sregul
ar
member
sast
hei
mmedi
atebenef
ici
aryoft
he
deci
sionsandact
ionsi
tpr
omul
gat
ed,
passedand
i
mpl
ement
ed.Soci
alAudi
twi
l
lser
veascont
rol
mechani
sm t
oaccountf
ori
tssoci
alper
for
mance
andev
aluat
eit
simpacti
nthecommuni
tyt
aki
ng
i
ntoaccountt
hecommuni
tydev
elopmentf
und
whi
chshal
lbeusedf
orpr
oject
soract
ivi
ti
est
hat
wi
l
lbenef
itt
hecommuni
tywher
ethecooper
ati
ve
oper
ates.

Sect
ion4.Obj
ect
ives/
UsesofSoci
alAudi
t.Soci
al
Audi
tval
i
dat
est
hesuppor
toft
hecooper
ati
vet
o
t
hesev
ent
hcooper
ati
vepr
inci
plesont
he
"
Concer
nCommuni
ty"anddet
ermi
neswhet
hert
he
cooper
ati
vewor
kfort
hecommuni
ty'
ssust
ainabl
e
dev
elopmentt
hroughpol
i
ciesappr
ovedbyt
hei
r
member
s.Theaudi
tfocusesnotonl
ytot
he
economi
csi
deoft
hecooper
ati
vebutal
sot
he
soci
alaspectoft
heor
gani
zat
ionandappr
aises
t
hecooper
ati
veper
for
manceasv
aluebased
or
gani
zat
ionusual
l
ypar
ti
cipat
ive,
userand
communi
tyor
ient
edandnon-
prof
itbutser
vice
or
gani
zat
ionandhowi
tssoci
alr
esponsi
bil
i
tyf
or
i
tsmember
sandt
hecommuni
tyasawhol
ewas
f
ulf
il
led.Soci
alAudi
ti
ngi
sthesy
stemat
icr
evi
ew
oft
heat
ti
tudes,
val
ues,
behav
ior
,anddegr
eeof
i
nter
act
ionofpeopl
ewi
thi
nthecooper
ati
veas
wel
last
hepol
i
cies,
progr
amsandact
ivi
ti
esbei
ng
i
mpl
ement
edbyt
hecooper
ati
ve.

Sect
ion5.Component
sandSoci
alAudi
tIndi
cat
ors.
TheSoci
alAudi
toft
hecooper
ati
veshal
lconsi
sts
ofbutnotl
i
mit
edt
othef
oll
owi
ngmaj
or
component
s/cat
egor
ieswi
thi
tsobj
ect
ives:

1.Member
shi
p.Todet
ermi
net
heef
fect
ivenessof
t
hecooper
ati
vei
nmeet
ingt
heneedsofi
ts
member
svi
s-à-
vist
hesoci
o-economi
cupl
i
ftment
andempower
mentoft
hemember
s.

2.Asset
sbui
l
ding.Todet
ermi
net
hecooper
ati
ves'
per
for
mancei
nbui
l
dingupi
tseconomi
ccapaci
ty
t
orespondt
oit
ssoci
alr
esponsi
bil
i
tyand
dev
elopmenti
ncomegener
ati
ngunder
taki
ngsf
or
i
tsmember
s.

3.Communi
tyI
nvol
vementandSol
i
dar
it
y.To
det
ermi
net
hedegr
eeofcommuni
ty,
soci
al,
env
ironment
ali
nvol
vementandsol
i
dar
it
yoft
he
cooper
ati
ve.I
nrel
ati
ont
othi
s,al
lcooper
ati
vesar
e
encour
aget
opr
omot
eenv
ironment
alawar
eness
andi
nst
il
lenv
ironment
alpr
otect
ionand
conser
vat
iont
othei
rmember
sandt
he
communi
tywher
etheyoper
ate,
andasf
aras
pr
act
icabl
etoconductt
ree-
plant
ingact
ivi
ti
esi
n
t
hecommuni
tywher
etheyoper
ateori
ts
i
mmedi
ateenv
irons.

4.I
nfor
mat
ionaccessi
nganddi
ssemi
nat
ion.To
det
ermi
net
hecapabi
l
ityoft
hecooper
ati
vet
o
access,
processanddi
ssemi
nat
einf
ormat
ion
f
rom/
toi
tsmember
sandcommuni
ty.I
tlooksi
nto
t
hef
unct
ionoft
heor
gani
zat
ionasanempower
ing
andr
esponsi
vemechani
sm.

5.Gender
,Yout
h,El
der
ly,
Chi
l
dren,
andPer
sons
wi
thDi
sabi
l
ity
.Todet
ermi
nehowt
hecooper
ati
ve
hascont
ri
but
edi
nthesoci
alcapi
tal
dev
elopment
f
ort
hewel
far
eoft
hey
out
h,t
heel
der
ly,
chi
l
dren,
andper
sonswi
thdi
sabi
l
ityandt
hepr
omot
ionof
t
hegenderf
aircul
tur
eandpr
act
ices.

6.Leader
shi
pandOr
gani
zat
ional
Management
.To
hi
ghl
i
ghtt
heat
tr
ibut
esoft
hel
eader
s/of
fi
cer
sof
t
hecooper
ati
veandef
fi
ciencyi
nmanagi
ngt
he
af
fai
rsoft
heor
gani
zat
ionasi
trel
ateswi
thi
ts
member
sandwi
thgov
ernment
.

Sect
ion6.Soci
alAudi
tManual
.TheAut
hor
it
yshal
l
dev
elopaSoci
alAudi
tManual
thatwi
l
lbeusedf
or
t
hepur
pose.
Sect
ion7.Appl
i
cabi
l
ity
.Al
lregi
ster
edcooper
ati
ves
shal
lsubmi
ttot
heAut
hor
it
ytheAnnual
soci
al
Audi
tRepor
tasconduct
edbyanI
ndependent
Soci
alAudi
toraccr
edi
tedbyt
heAut
hor
it
y.

Sect
ion8.Sanct
ions.Thef
ail
ureoft
he
cooper
ati
vest
otheAut
hor
it
yoft
her
equi
red
Soci
alAudi
tRepor
tconduct
edbyt
heAccr
edi
ted
I
ndependentSoci
alAudi
torshal
lmeannon-
compl
i
ancewi
tht
her
equi
redr
epor
tsandwi
l
lbe
met
edwi
thcor
respondi
ngpenal
ti
esi
n
accor
dancewi
thR.
A.9520.

Sect
ion9.Tr
ansi
tor
yPer
iod.Al
lcooper
ati
vear
e
her
ebygi
vent
wo(
2)y
ear
sfr
om ef
fect
ivi
tyoft
his
Rul
etocompl
ywi
tht
heSoci
alAudi
tRequi
rement
s
aspr
ovi
dedabov
e.

RULE12
FI
NANCI
ALSERVI
CECOOPERATI
VE(
FSC)
Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.121(
1)and(
14)oft
heCode,
quot
edas
f
oll
ows:

"
Art
.121.Regul
ati
onandSuper
visi
on.-The
Aut
hor
it
yshal
lex
erci
sel
eadr
egul
ari
typower
sand
super
visi
onov
ert
heoper
ati
onsoft
hef
inanci
al
ser
vicecooper
ati
ves,
towi
t:

(
1)I
ssuer
ulesandr
egul
ati
onsf
ort
hesaf
eand
soundoper
ati
onsoff
inanci
alser
vicecooper
ati
ves.
x
xx

(
14)Appoi
ntaconser
vat
ororar
ecei
verasmaybe
necessar
ysubj
ectt
other
ulesandr
egul
ati
onst
o
bepr
omul
gat
edbyt
heAut
hor
it
yincoor
dinat
ion
wi
tht
heBSP,
taki
ngi
ntoconsi
der
ati
ont
he
gr
ounds,
power
sandpr
ocedur
esunderSect
ions
29and30ofRepubl
i
cAct
.No.7653asmaybe
deemedappr
opr
iat
etof
inanci
alser
vice
cooper
ati
ves.
TheAut
hor
it
yshal
li
ncl
udei
nit
srul
esand
r
egul
ati
onappr
opr
iat
esanct
ionsandpenal
ti
es,
on
t
hef
inanci
alser
vicecooper
ati
ves,
itsmember
s,
andof
fi
cer
sandr
esponsi
ble,
itsmember
s,
of
fi
cer
sandr
esponsi
bleper
sons,
foranyact
ion
t
hatf
ail
stoadher
etosoundandpr
udent
managementpr
act
icesorar
einconsi
stentwi
th
t
hepr
ovi
sionsoft
hisCodex
xx.
"

Sect
ion2.Funct
ionsofFSC.AFSCi
saf
inanci
al
or
gani
zat
ionownedandoper
atedbyi
tsmember
s
andaut
hor
izedt
opr
ovi
det
hef
oll
owi
ngser
vices,
ex
clusi
vel
ytoi
tsmember
s:(
a)t
hef
unct
ionsof
cr
edi
tcooper
ati
vesandot
hercooper
ati
ves,
i
ncl
udi
ngmul
ti
pur
posecooper
ati
ves,
thatpr
ovi
de
sav
ingsandcr
edi
ttot
hei
rmember
s;and(
b)ot
her
f
inanci
alser
vicessubj
ectt
oregul
ati
onbyt
heBSP.

Sect
ion3.Cov
erage.(
1)Al
lFi
nanci
alSer
vice
Cooper
ati
veor
gani
zedf
ort
hepr
imar
ypur
poseof
engagi
ngi
nsav
ingsandcr
edi
tser
vicesandot
her
f
inanci
alser
vices,
and(
2)Ex
ist
ingcooper
ati
ves
wi
thsav
ingsandcr
edi
tfaci
l
iti
eswhi
chhas
f
ormal
l
ynot
if
iedt
heAut
hor
it
yoft
hei
rint
ent
iont
o
ex
erci
seenhancedf
unct
ionsandsat
isf
iedt
he
r
equi
rement
sofCDAf
orconv
ersi
ont
oFi
nanci
al
Ser
viceCooper
ati
ve.

Sect
ion4.Regi
str
ati
on.TheAr
ti
clesof
Cooper
ati
onandBy
-l
awsofanyFSC,
orany
amendmentt
her
eto,
shal
lber
egi
ster
edwi
tht
he
Aut
hor
it
yonl
yifaccompani
edbyaCer
ti
fi
cat
eof
Aut
hor
it
yissuedbyt
heBSP,
underi
tsof
fi
cial
seal
.
Ex
ist
ingcooper
ati
veengagedi
ncr
edi
tandmul
ti
pur
poseact
ivi
ti
es,
aft
eri
thasnot
if
iedt
he
Aut
hor
it
yofi
tsdeci
siont
oex
erci
seenhanced
f
unct
ionsandsat
isf
iedt
her
equi
rement
sfort
he
conv
ersi
ont
oFi
nanci
alSer
viceCooper
ati
ve,
shal
l
r
egi
steri
tsamendedAr
ti
clesofCooper
ati
onand
By
-l
awst
otheAut
hor
it
yuponappr
oval
oft
he
Aut
hor
it
yandf
avor
abl
ecer
ti
fi
cat
ionoft
heBSP.

Sect
ion5.Rev
ocat
ionofAut
hor
it
y.Theaut
hor
it
y
gr
ant
ed,
mayber
evokedbyt
heBSPi
fanyoft
he
gr
oundsf
orr
ecei
ver
shi
pment
ionedunderSect
ion
30ofRepubl
i
cAct
.No.7653,
other
wiseknownas
TheNewCent
ral
BankActandsect
ions53and56
ofRepubl
i
cActNo.8791,
other
wiseknownasAn
ActPr
ovi
dingf
ort
heRegul
ati
onoft
he
Or
gani
zat
ionandOper
ati
onsofBanks,
Quasi
-
Banks,
TrustEnt
it
iesandf
orOt
herPur
posesar
e
pr
esentori
ftheFSChaswi
l
lful
l
yvi
olat
edt
he
Codeoranyoft
her
elat
edr
ulesandr
egul
ati
ons.

Sect
ion6.Mi
nimum Capi
tal
i
zat
ionRequi
rement
s.
Onl
ythosecooper
ati
veswi
thmi
nimum Pai
d-up
capi
tal
ofatl
eastTenMi
l
li
onpesos(
Php
10,
000,
000.
00)shal
lqual
i
fyt
oregi
sterasFSC
wi
thoutpr
ejudi
cet
oaddi
ti
onal
capi
tal
r
equi
rement
sthatmay
bepr
escr
ibedbyt
heBSP
f
orapar
ti
cul
arf
inanci
alser
vicer
egul
atedbyt
he
BSPt
hatwi
l
lbeof
fer
edbyt
heFSC.

Sect
ion7.Document
aryRequi
rement
s.I
naddi
ti
on
t
othedocument
srequi
redbyt
heaut
hor
it
yfor
r
egi
str
ati
onofnewcooper
ati
ve/
amendment
s,t
he
f
oll
owi
ngshal
lbel
i
kewi
sesubmi
tt
ed:

1.Cer
ti
fi
cat
eofAut
hor
it
yfr
om BSP;
2.Resol
uti
onoft
heBoar
dst
ati
ngt
hat
:

2.
1Thef
unct
ionoroneoft
hef
unct
ionsoft
he
cooper
ati
veshal
lbesav
ings,
credi
tandot
her
f
inanci
alser
vices;

2.
2Theamountofpai
d-upcapi
tal
all
ocat
edf
or
suchpur
posesshal
lbeatl
eastTenMi
l
li
onPesos
(
Php10,
000,
000.
00)
;

3.Under
taki
ngt
oaccompl
i
shwi
thi
nay
earf
rom
t
hei
ssuanceofCer
ti
fi
cat
eofRegi
str
ati
ont
o
est
abl
i
sht
hebusi
nesssi
teequi
ppedwi
thf
aci
l
iti
es,
f
orms,
stat
ioner
ies,
andv
aul
tandpr
ovi
der
equi
red
speci
alt
rai
ning/
semi
narf
orof
fi
cer
soft
he
cooper
ati
ve;

4.Audi
tedFi
nanci
alSt
atementoft
hei
mmedi
atel
y
pr
ecedi
ngy
eari
ncaseofex
ist
ingcooper
ati
ve;
5.Ot
herpaper
s,whi
chmayber
equi
redby
Aut
hor
it
y.

Sect
ion8.Repor
tor
ial
Requi
rement
s.TheFSCshal
l
submi
tther
egul
arr
epor
tsaspr
ovi
dedunder
Sect
ion2ofRul
e8oft
hisRul
e.

Sect
ion9.Member
shi
pandAf
fi
li
ati
on.AFSCshal
l
hav
etwo(
2)t
ypesofmember
s:(
1)Regul
ar
member
s,whoar
enat
ural
per
sons;
and(
2)
Associ
atemember
swhoar
enat
ural
per
sonsbut
whodonoti
mmedi
atel
yqual
i
fyundert
he
r
equi
rement
sformember
shi
psetouti
ntheBy
-
l
awsoft
hecooper
ati
ve.Al
lassoci
atemember
s
whoar
enat
ural
per
sonsshal
lbegi
vent
wo(
2)
y
ear
stobecomer
egul
armember
s.Fai
l
uret
o
conv
ertwi
thi
nsai
dper
iodshal
lmeanaut
omat
ic
wi
thdr
awal
oft
hei
rassoci
atemember
shi
p.They
may
,howev
er,
re-
appl
yasr
egul
armember
saf
ter
t
wo(
2)y
ear
s.Mi
nor
swhoar
edependent
sof
r
egul
armember
scanqual
i
fyasassoci
ate
member
s.Whent
heyr
eacht
heageofmaj
ori
ty
andwi
thi
ntwo(
2)y
ear
sfr
om accept
anceoft
hei
r
associ
atemember
shi
p,t
heyhav
etheopt
iont
o
conv
erti
ntor
egul
armember
s.Asassoci
ate
member
s,t
heymayopenaccount
s,deposi
tfunds,
andwi
thdr
awf
rom t
hei
raccount
,subj
ectt
otheBy
-
lawsandr
ulesoft
hecooper
ati
ve,
andt
her
ules
andr
egul
ati
onsoft
heAut
hor
it
y,not
wit
hst
andi
ng
t
hepr
ovi
sionsofex
ist
ingl
awst
othecont
rar
y.

Sect
ion10.Of
fi
cer
s.Theof
fi
cer
soft
heFSCshal
l
becomposedoft
heMember
soft
heBoar
dof
Di
rect
ors,
Commi
tt
eeMember
s,Gener
alManager
orChi
efEx
ecut
iveOf
fi
cer
,Secr
etar
y,Tr
easur
er
andMember
shol
dingot
herposi
ti
onsasmaybe
pr
ovi
dedf
ori
nthei
rBy
-l
aws.

Sect
ion11.Bondi
ngofAccount
abl
eOf
fi
cer
s.
Ev
eryDi
rect
or,
Off
icer
,andEmpl
oyeeshandl
i
ng
f
unds,
secur
it
ies,
orpr
oper
tyonbehal
foft
heFSC
shal
lbecov
eredbyasur
etybondt
obei
ssuedby
adul
yregi
ster
edi
nsur
anceorbondi
ngcompany
f
ort
hef
ait
hful
per
for
manceoft
hei
rrespect
ive
dut
iesandobl
i
gat
ions.TheBoar
dofDi
rect
ors
shal
ldet
ermi
net
headequacyofsuchbonds.
Sect
ion12.Compensat
ion.I
ntheabsenceofany
pr
ovi
sioni
ntheBy
-l
awsf
ixi
ngt
hei
rcompensat
ion,
t
heDi
rect
ors,
shal
lnotr
ecei
veanycompensat
ion
ex
ceptf
orr
easonabl
eperdi
ems:
Prov
ided,
howev
er,
Thatt
heDi
rect
orsandOf
fi
cer
sshal
lnot
beent
it
ledt
oanyperdi
em when,
int
hepr
ecedi
ng
cal
endary
ear
,thecooper
ati
ver
epor
tedanetl
oss
orhaddi
vi
dendr
atel
esst
hant
heof
fi
cial
inf
lat
ion
r
atef
ort
hey
ear
.Anycompensat
ionot
hert
hanper
di
emsmaybegr
ant
edt
oDi
rect
orsbyamaj
ori
ty
v
oteoft
hemember
swi
thv
oti
ngr
ight
satar
egul
ar
orspeci
algener
alassembl
ymeet
ingspeci
fi
cal
l
y
cal
l
edf
ort
hepur
pose:
Prov
idedf
urt
her
,Thatno
addi
ti
onal
compensat
ionot
hert
hanperdi
ems
shal
lbepai
ddur
ingt
hef
ir
sty
earofex
ist
enceof
t
heFSC.Pr
ovi
dedf
inal
l
y,Thatt
hei
mmedi
atel
y
pr
ecedi
ngpr
ovi
soshal
lnotappl
ytocooper
ati
ves
whi
chconv
ert
edi
ntoFi
nanci
alSer
vice
Cooper
ati
ve.Thecompensat
ionofOf
fi
cer
sas
wel
last
heMember
soft
heCommi
tt
eecr
eat
ed
pur
suantt
otheCodeori
tsBy
-l
awsmay
bef
ixedi
n
By
-l
aws.
Sect
ion13.Remov
alofOf
fi
cer
s.Al
lcompl
aint
sfor
t
her
emov
alofanyel
ect
edOf
fi
cershal
lbef
il
ed
wi
tht
heBoar
dofDi
rect
ors.SuchOf
fi
cershal
lbe
gi
vent
heoppor
tuni
tyt
obehear
d.Maj
ori
tyoft
he
Boar
dofDi
rect
orsmaypl
acet
heOf
fi
cer
concer
nedunderpr
event
ivesuspensi
onpendi
ng
t
her
esol
uti
onoft
hei
nvest
igat
ionwhi
chper
iod
shal
lbespeci
fi
edi
ntheBy
-l
awsorpol
i
ciesoft
he
cooper
ati
vedul
yappr
ovedbyt
he
Gener
al/
Repr
esent
ati
veAssembl
y.Uponf
indi
ng
ofapr
imaf
aci
eev
idenceofgui
l
t,t
heBoar
dof
Di
rect
orsshal
lpr
esenti
tsr
ecommendat
ionf
or
r
emov
alt
otheGener
al/
Repr
esent
ati
veAssembl
y.

AnEl
ect
iveOf
fi
cermayber
emov
edbyt
hree-
f
our
ths(
3/4)v
oteoft
her
egul
armember
spr
esent
andconst
it
uti
ngaquor
um i
nar
egul
arorspeci
al
gener
alassembl
ymeet
ingcal
l
edf
ort
hepur
pose.
TheOf
fi
cerconcer
nedshal
lbegi
venan
oppor
tuni
tyt
obehear
datsai
dassembl
y.

Sect
ion14.Networ
th.TheNetWor
thoft
heFSC
shal
l
,atal
lti
mes,
notbel
esst
hananamount
equal
toei
ghtper
cent(
8%)ofi
tsr
iskasset
s.The
networ
thposi
ti
onsshoul
dbesuf
fi
cientt
omeet
compet
it
ivepr
essur
eandadv
erseeconomi
c
condi
ti
onsast
heyar
ise.I
tshoul
denhancet
he
saf
etyoft
hemember
s'shar
eandkeeppacewi
th
gr
owt
hinFSCasset
s.

Sect
ion15.Deposi
tandBor
rowi
ngOper
ati
ons.
Sav
ingsandTi
meDeposi
tswi
thFSCmaybe
openedwi
thami
nimum amountt
obedet
ermi
ned
byt
heBoar
dofDi
rect
ors.Onl
ymember
sandi
ts
af
fi
li
atel
abor
ator
ycooper
ati
vemayopensav
ings
and/
ort
imedeposi
taccount
s.TheFSC,
thr
ough
t
heBoar
dofDi
rect
orsasaut
hor
izedbyt
he
Gener
alAssembl
y,maybor
rowf
rom anysour
ceat
t
hebestt
ermsorcondi
ti
onsav
ail
abl
eandi
nsuch
amountt
hatmaybeneeded.

Sect
ion16.Reser
veRequi
rement
sagai
nstDeposi
t
Li
abi
l
iti
es.FSCshal
lmai
ntai
naLi
qui
dit
yReser
ve
Fundt
hatwi
l
lber
est
ri
ctedi
nnat
ureequi
val
entt
o
atl
eastt
woper
cent(
2%)oft
hei
rsav
ingsandt
ime
deposi
tli
abi
l
iti
es.
Sect
ion17.Loans.TheBoar
dofDi
rect
orsshal
lbe
r
esponsi
blef
orset
ti
ngl
oanpol
i
ciesandl
endi
ng
pr
ocedur
es.I
tshal
lcompl
ywi
tht
hepr
ovi
sionsof
R.
A.3765,
other
wiseknownast
he"
Trut
hin
Lendi
ngAct
"andshal
lmaket
het
rueandef
fect
ive
costofbor
rowi
ng,
ani
ntegr
alpar
tofev
eryl
oan
cont
ract
.

Sect
ion18.I
nvest
mentPr
ogr
am.Asound
i
nvest
mentpr
ogr
am shal
lbet
hesol
e
r
esponsi
bil
i
tyandaccount
abi
l
ityoft
heBoar
dof
Di
rect
ors.Thescopeoft
hepr
ogr
am wi
l
ldepend
l
argel
yont
heFSCsi
zeandt
heex
tentofi
ts
sur
plusf
unds.I
nvest
mentpol
i
ciesshoul
dbei
n
wr
it
ingandshoul
daddr
esst
hesaf
ety
,li
qui
dit
y
andy
iel
d,di
ver
sif
icat
ion,
del
egat
ionofaut
hor
it
y,
andv
aluat
ion/
assessmentofsecur
it
ies.TheFSC
shal
lnoti
nvesti
nanysi
ngl
eent
it
ymor
ethan20%
ofi
tsnetwor
th.

Sect
ion19.I
nter
nal
Cont
rol
.TheFSCshal
ladopta
pr
operpl
anofor
gani
zat
ion,
account
ingcont
rol
,
account
ingsy
stem,
admi
nist
rat
ivecont
rol
,i
nter
nal
cont
rol
standar
ds,
account
ingr
ecor
dspr
ocedur
es
andot
hermeasur
est
osaf
eguar
dtheFSC'
sasset
s,
checkt
heaccur
acyandr
eli
abi
l
ityofaccount
ing
dat
a,pr
omot
eoper
ati
onal
eff
ici
ency
,and
encour
ageadher
encet
opr
escr
ibedmanager
ial
pol
i
cies.

Sect
ion20.Per
for
manceSt
andar
ds.Apol
i
cyof
t
ranspar
encyandopennessmustbeal
way
s
mai
ntai
nedwher
ebyt
heBooksofAccount
s,
Gener
al/
Repr
esent
ati
veAssembl
y,Boar
d
Resol
uti
onsandCommi
tt
eeRepor
tsar
epr
oper
ly
keptandmadeaccessi
blet
omember
s,andt
he
r
egul
arf
inanci
alst
atement
sar
eper
iodi
cal
l
y
pr
epar
edandmadeknownt
othemember
s,t
othe
Aut
hor
it
yandt
oot
herpar
ti
esi
nter
est
edi
nthe
FSC'
soper
ati
ons.

Sect
ion21.St
andar
dChar
tofAccount
s.Al
lFSCs
shal
ladoptt
heSt
andar
dChar
tofAccount
sandi
ts
accompany
ingAccount
ingManual
forCr
edi
tand
Ot
herTy
pesofCooper
ati
veswi
thCr
edi
tSer
vice
i
ssuedbyt
heAut
hor
it
y.

Sect
ion22.Manual
ofRul
esandRegul
ati
ons.The
Aut
hor
it
yshal
ldev
elopaManual
thatwi
l
lcov
er:
(1)
t
heRul
esandRegul
ati
onsf
ort
hesaf
eandsound
conductofoper
ati
onsofFi
nanci
alSer
vice
Cooper
ati
ves;
(2)Rul
esandRegul
ati
onsf
ort
he
appoi
ntmentofaConser
vat
ororaRecei
veras
maybenecessar
yincoor
dinat
ionwi
tht
heBSP,
t
aki
ngi
ntoconsi
der
ati
ont
hegr
ounds,
power
sand
pr
ocedur
esunderSect
ion29and30ofRepubl
i
c
ActNo.7653asmaydeemedappr
opr
iat
eto
Fi
nanci
alSer
viceCooper
ati
ves;
and(
3)t
he
appr
opr
iat
esanct
ionsandpenal
ti
esont
he
Fi
nanci
alSer
viceCooper
ati
ves,
itsMember
s,
Of
fi
cer
sandResponsi
blePer
sons,
foranyact
ion
t
hatf
ail
stoadher
etosoundandpr
udent
managementpr
act
icesorar
einconsi
stentwi
th
t
hepr
ovi
sionsoft
heCode,
otherappl
i
cabl
elaws
oncooper
ati
ves,
rul
es,
regul
ati
ons,
cir
cul
arsor
or
der
sissuedbyt
heAut
hor
it
y,andr
equi
ret
he
cooper
ati
vet
ounder
takecor
rect
iveorr
emedi
al
measur
esr
elat
ivet
her
eto.
Theappr
opr
iat
epr
udent
ial
Rul
esandRegul
ati
ons
appl
i
cabl
etot
heFi
nanci
alSer
viceCooper
ati
ves
wi
l
lbedev
elopedbyt
heBSP,
incoor
dinat
ionwi
th
t
heAut
hor
it
y.

Sect
ion23.Pr
ohi
bit
ion.Thet
erms'
Credi
t
Cooper
ati
ves'
,'
Fi
nanci
alSer
viceCooper
ati
ve'
,and
'
Fi
nanci
alSer
viceCooper
ati
veFeder
ati
on'
shal
lbe
usedex
clusi
vel
ybyt
hosewhoar
edul
yregi
ster
ed
undert
heCode,
andnoper
son,
groupofper
sons,
oror
gani
zat
ionshal
luset
hesai
dter
msunl
ess
dul
yregi
ster
edwi
tht
heAut
hor
it
y.Vi
olat
ionsof
t
hispr
ohi
bit
ionshal
lbepuni
shabl
einaccor
dance
wi
thAr
t.140oft
heCode.

RULE13
VOLUNTARYARBI
TRATI
ON

Sect
ion1.Legal
Basi
s.Thel
egal
basi
sfort
hisRul
e
i
sAr
t.137oft
heCodequot
edasf
oll
ows:
"
Art
.137.Set
tl
ementofDi
sput
es,
Conci
l
iat
ion,
and
Medi
ati
onPr
oceedi
ngs.-Di
sput
esamong
member
s,of
fi
cer
s,di
rect
ors,
andcommi
tt
ee
member
s,andi
ntr
a-cooper
ati
ve,
int
er-
cooper
ati
ve,
i
ntr
a-f
eder
ati
onori
ntr
a-f
eder
ati
ondi
sput
esshal
l
,
asf
araspr
act
icabl
e,beset
tl
edami
cabl
yin
accor
dancewi
tht
heconci
l
iat
ionormedi
ati
on
mechani
sm embodi
edi
ntheby
lawsof
cooper
ati
vesandi
nsuchot
herappl
i
cabl
elaws.

Theconci
l
iat
ionandmedi
ati
oncommi
tt
eeoft
he
cooper
ati
veshal
lfaci
l
itat
etheami
cabl
e
set
tl
ementofi
ntr
a-cooper
ati
vedi
sput
esand
di
sput
esamongmember
s,of
fi
cer
s,di
rect
ors,
and
commi
tt
eemember
s.

Shoul
dsuchconci
l
iat
ionandmedi
ati
on
pr
oceedi
ngsf
ail
,themat
tershal
lbeset
tl
ed
t
hroughv
olunt
aryar
bit
rat
ion:
Prov
ided,
howev
er,
Thatbef
oreanypar
tycanv
ali
dlyf
il
eacompl
aint
wi
tht
heAut
hor
it
yforv
olunt
aryar
bit
rat
ion,
itmust
f
ir
stsecur
eacer
ti
fi
cat
ionf
rom i
tsconci
l
iat
ionand
medi
ati
oncommi
tt
eeandf
rom t
hecooper
ati
ve
uni
onorf
eder
ati
ont
owhi
chi
tbel
ongst
hat
despi
teal
lef
for
tst
oset
tl
ethei
ssues,
thesame
hav
efai
l
ed.

Thej
uri
sdi
cti
onoft
hev
olunt
aryar
bit
rat
ionshal
lbe
ex
clusi
veandor
igi
nal
andt
hei
rdeci
sionsshal
lbe
appeal
abl
etot
heOf
fi
ceoft
hePr
esi
dent
.The
Aut
hor
it
yshal
li
ssueandadoptt
hepr
operr
ulesof
pr
ocedur
egov
erni
ngar
bit
rat
ionast
hepr
imar
y
andex
clusi
vemodef
ordi
sput
eresol
uti
oni
n
accor
dancewi
tht
heAl
ter
nat
iveDi
sput
e
Resol
uti
onActof2004.

Fort
hispur
pose,
theAut
hor
it
yshal
lconst
it
utea
l
i
stofQual
i
fiedVol
unt
aryAr
bit
rat
ors.
"

Sect
ion2.Ex
clusi
veandOr
igi
nal
Jur
isdi
cti
onof
t
heVol
unt
aryAr
bit
rat
or/
Arbi
tr
ator
.TheVol
unt
ary
Ar
bit
rat
or/
Arbi
tr
atormut
ual
l
ychosenbyt
he
par
ti
esshal
lhav
eex
clusi
veandor
igi
nal
j
uri
sdi
cti
onov
ert
hedi
sput
e,andt
hei
rdeci
sion
shal
lbeappeal
abl
etot
heOf
fi
ceoft
hePr
esi
dent
oft
heRepubl
i
coft
hePhi
l
ippi
nes.
Sect
ion3.Power
s/Aut
hor
it
yoft
heVol
unt
ary
Ar
bit
rat
or/
s.TheVol
unt
aryAr
bit
rat
or/
sshal
lhav
e
t
hef
oll
owi
ngpower
s/aut
hor
it
y:

a.Tohol
dhear
ingsandt
orecei
veev
idence
necessar
ytor
esol
vet
hei
ssue/
ssubj
ectoft
he
di
sput
e.

b.Tor
equi
reanyper
sont
oat
tendhear
ing/
sas
wi
tnessort
ocausepr
oduct
ionofdocument
s
whent
her
elev
ancyandt
hemat
eri
ali
tyt
her
eofar
e
v
ital
tot
her
esol
uti
onoft
hecase.

c.Toadmi
nist
eroat
h.

d.Toci
tecont
emptanyper
sondi
stur
bingt
he
pr
oceedi
ngand/
orwhowi
l
lful
l
ydef
ylawf
ulor
der
s
oft
heVol
unt
aryAr
bit
rat
or/
Arbi
tr
ator
s.

e.Toi
ssueaWr
itofEx
ecut
ion,
ifnecessar
y.
f
.Toex
erci
sesuchot
herpower
sandf
unct
ionsas
maybenecessar
ytor
esol
vet
hedi
sput
e.

Sect
ion4.Nat
ureofPr
oceedi
ngs.Vol
unt
ary
Ar
bit
rat
ioni
sanadmi
nist
rat
ivepr
oceedi
ng.The
t
echni
cal
rul
esappl
i
cabl
etocour
torj
udi
cial
pr
oceedi
ngsmaynotappl
yst
ri
ctl
y.Howev
er,
the
r
equi
rement
sofduepr
ocessmustbeobser
vedat
al
lti
mes.Thehear
ingmaypr
oceedev
eni
nthe
absenceofanypar
ty,
prov
idedt
hepar
ti
eswer
e
dul
ynot
if
iedandt
hei
rfai
l
uret
oappeari
nsuch
schedul
edmeet
ingi
sunj
ust
if
iedasdet
ermi
nedby
t
heVol
unt
aryAr
bit
rat
or/
shandl
i
ngt
he
pr
oceedi
ngs.

Sect
ion5.Cov
erage.Al
li
ntr
a/i
ntercooper
ati
ve
di
sput
esnotr
esol
vedami
cabl
yinaccor
dance
wi
tht
heConci
l
iat
ion/
Medi
ati
onMechani
sms
embodi
edi
ntheBy
-l
awsofacooper
ati
veshal
lbe
gov
ernedbyt
hisRul
e.
Sect
ion6.CommencementofAct
ion.Anypar
tyof
adi
sput
enotr
esol
vedt
hrough
Conci
l
iat
ion/
Medi
ati
onPr
oceedi
ngi
nthepr
imar
y
anduni
on/
feder
ati
onl
evel
cancommencean
act
ionf
orVol
unt
aryAr
bit
rat
ionbyf
il
ingaVer
if
ied
Compl
aintwi
tht
heAut
hor
it
y.

I
nthecaseofapr
imar
ycooper
ati
veaf
fi
li
atedwi
th
anyf
eder
ati
on/
uni
on,
thecompl
aintshal
lbe
accompani
edbyaCer
ti
fi
cat
eofNon-
Set
tl
ement
i
ssuedbyt
hesai
dfeder
ati
on/
uni
ont
owhi
cht
he
pr
imar
ycooper
ati
vei
saf
fi
li
atedwi
th.

I
nthecaseofapr
imar
ycooper
ati
venotaf
fi
li
ated
wi
thanyf
eder
ati
onoruni
on,
thecompl
aintshal
l
beaccompani
edbyaCer
ti
fi
cat
eofNon-
Set
tl
ementi
ssuedbyt
heConci
l
iat
ion/
Medi
ati
on
Commi
tt
eeofsuchpr
imar
ycooper
ati
vet
oget
her
wi
thaCer
ti
fi
cat
eofNon-
Aff
il
iat
ionwi
thany
Feder
ati
on/
Uni
onsi
gnedbyt
heChai
rper
sonof
t
heBoar
dofDi
rect
orsoft
hesamecooper
ati
ve.

Sect
ion7.VenueofAct
ion.Al
lcompl
aint
sshal
lbe
f
il
edwi
thCDA-
Ext
ensi
onOf
fi
cehav
ing
admi
nist
rat
ivej
uri
sdi
cti
onov
ert
hecooper
ati
ves.
Howev
er,
forcompl
aint
sinv
olv
ingcooper
ati
ves
r
egi
ster
edwi
tht
heCent
ral
Off
icesuchcompl
aint
shal
lbef
il
edwi
tht
hel
att
er.

Sect
ion8.Cont
ent
soft
heCompl
aint
.The
compl
aintshal
lcont
ain:

1.TheNamesandAddr
essesoft
he
Compl
ainant
/sandRespondent
/s;

2.ABr
iefDescr
ipt
ionoft
heCompl
aintandt
he
Document
aryEv
idences,
ifany
;and

3.TheRel
i
efPr
ayedFor
.

Sect
ion9.Par
ti
est
otheDi
sput
e.ThePar
tywho
f
il
edt
hecompl
aintshal
lbecal
l
edt
he
"
Compl
ainant
/s"andt
hePar
tycompl
ainedofshal
l
becal
l
edt
he"
Respondent
/s"
.
Sect
ion10.Pr
ocedur
es.Uponr
ecei
ptoft
he
Compl
aint
,theAut
hor
it
yshal
li
ssuea
Not
ice/
Summonst
otheRespondent
/st
ofi
l
e
Answer
/Comment
.Uponr
ecei
ptoft
he
Answer
/Comment
,aPr
eli
minar
yConf
erenceshal
l
beschedul
ed.

Sect
ion11.Pr
eli
minar
yConf
erence.ANot
iceshal
l
besentt
oal
lpar
ti
esconcer
ned,
indi
cat
ingt
he
t
imeanddat
eoft
heconf
erence.TheNot
iceshal
l
beser
vedonCounsel
,oront
hepar
tywhohasno
Counsel
.Itshal
lbet
hedut
yoft
hepar
ti
esort
hei
r
Counsel
toappearatt
hePr
eli
minar
yConf
erence.
Thenon-
appear
anceofapar
tymaybeex
cused
onl
yifav
ali
dcausei
sshownt
her
efor
eori
fa
Repr
esent
ati
veshal
lappeari
nhi
s/herbehal
fful
l
y
aut
hor
izedi
nwr
it
ing.Theunj
ust
if
iedf
ail
ureoft
he
Compl
aintt
oappeari
nthePr
eli
minar
yConf
erence
shal
lbecausef
ordi
smi
ssal
oft
hecompl
aint
.A
si
mil
arf
ail
ureont
hepar
toft
heRespondentatt
he
f
ir
sti
nst
ance,
asecondNot
ice/
Summonsshal
lbe
i
ssued.Non-
compl
i
ancewi
tht
hesecond
Not
ice/
Summonsbyt
heRespondent
/sshal
lbe
causef
ort
hedi
smi
ssal
oft
hecompl
aint
.Howev
er,
aCer
ti
fi
cat
eofNon-
Resol
uti
onmaybei
ssued
uponr
equestoft
heCompl
ainant
.

Whenev
ert
heRespondent
'swher
eabout
sar
e
unknownorcannotbeascer
tai
nedbydi
l
igent
i
nqui
ry,
thenot
icemaybeef
fect
edbypubl
i
cat
ion
i
nanewspaperofgener
alci
rcul
ati
onatt
he
ex
penseoft
hecompl
ainant
,ot
her
wiset
he
compl
aintshal
lbedi
smi
ssed.Howev
er,
a
Cer
ti
fi
cat
eofNon-
Resol
uti
onmaybei
ssuedt
othe
Compl
ainant
.

Shoul
dthepar
ti
esappeari
nthePr
eli
minar
y
Conf
erence,
thepar
ti
esshal
lber
equi
redt
osi
gna
Submi
ssi
onAgr
eement
.

Sect
ion12.Cont
ent
soft
heSubmi
ssi
on
Agr
eement
.TheAgr
eementshal
lcont
ain,
among
ot
hert
hings,
thef
oll
owi
ngmat
ter
s:
1.Theagr
eementt
osubmi
ttoVol
unt
ary
Ar
bit
rat
ion;

2.Thespeci
fi
cissue/
sordi
sput
e/st
obe
submi
tt
edf
orr
esol
uti
on;

3.Thenameoft
heVol
unt
aryAr
bit
rat
or/
schosen
byt
hepar
ti
es;

4.Themannerofpay
ingt
hecostofar
bit
rat
ion
pr
oceedi
ngsi
ncl
udi
ngt
heAr
bit
rat
or'
sfee;

5.Thenameoft
hepubl
i
cof
fi
cial
whom t
hepar
ti
es
maydesi
gnat
etoex
ecut
ethef
inal
deci
sionor
awar
d,i
fnecessar
y;and

6.TheAgr
eementt
oper
for
m orabi
debyt
he
Deci
sion/
Awar
d.

Sect
ion13.Ar
bit
rat
ionPr
oceedi
ngs.Al
lpar
ti
est
o
t
hedi
sput
eshal
lat
tendt
hear
bit
rat
ion
pr
oceedi
ngs.Theat
tendanceofanyt
hir
dpar
tyor
t
heex
clusi
onofanywi
tnessi
nthepr
oceedi
ng
shal
lbedet
ermi
nedbyt
heVol
unt
aryAr
bit
rat
or/
s.
Hear
ingsmaybeadj
our
nedf
orav
ali
dcauseor
uponagr
eementoft
hepar
ti
es.Unl
esst
hepar
ti
es
agr
eeot
her
wise,
iti
smandat
oryf
ort
heVol
unt
ary
Ar
bit
rat
or/
stor
enderaDeci
sionorAwar
dwi
thi
n
t
hir
ty(
30)cal
endarday
sfr
om t
hedat
ethepar
ti
es
agr
eedt
osubmi
tthecasef
orr
esol
uti
on.

Sect
ion14.Deci
sion/
Awar
d.Thef
inal
disposi
ti
on
oft
hei
ssue/
ssubmi
tt
edt
oVol
unt
aryAr
bit
rat
ion
i
stheDeci
sion/
Awar
d.

TheDeci
sionorAwar
dmustbest
atedi
ncl
ear
,
conci
seanddef
ini
tet
erms.I
tshal
li
ncl
udet
he
f
act
sandt
hel
awand/
orcont
ractuponwhi
cht
he
Deci
sion/
Awar
disbasedandshal
lbesi
gnedby
t
heVol
unt
aryAr
bit
rat
or/
s.Acopyoft
his
Deci
sion/
Awar
dshal
lbef
urni
shedt
heAut
hor
it
y.

Sect
ion15.Ex
tentofDeci
sion/
Awar
d.The
Vol
unt
aryAr
bit
rat
or/
sshal
lhav
ethepowert
o
deci
deonl
ythemat
ter
swhi
chhav
ebeen
submi
tt
edf
orar
bit
rat
ion.

Sect
ion16.Enf
orcement
/Ex
ecut
ionof
Deci
sion/
Awar
d.Thepar
ti
esshal
lcompl
y
v
olunt
ari
l
yandf
ait
hful
l
ytheDeci
sion/
Awar
d.I
n
i
nst
ancesofnon-
compl
i
ance,
aMot
iont
oEnf
orce
orEx
ecut
emaybef
il
edwi
tht
heVol
unt
ary
Ar
bit
rat
or/
swhomayi
ssueaWr
itEx
ecut
ion
r
equi
ri
ngei
thert
hesher
if
foft
heAut
hor
it
y,i
fany
,
ort
her
egul
arcour
tsoranypubl
i
cof
fi
cial
whom
t
hepar
ti
esmaydesi
gnat
eint
hesubmi
ssi
on
agr
eementt
oex
ecut
ethef
inal
deci
sionorawar
d.

Sect
ion17.Appeal
tot
heOf
fi
ceoft
hePr
esi
dentof
t
heRepubl
i
coft
hePhi
l
ippi
nes.The
Deci
sion/
Awar
drender
edshal
lbeappeal
abl
eto
t
heOf
fi
ceoft
hePr
esi
dentoft
heRepubl
i
coft
he
Phi
l
ippi
nes.TheAppeal
ist
akenbyf
il
ingaNot
ice
ofAppeal
wit
hinf
if
teen(
15)day
saf
terr
ecei
ptof
t
hecopyoft
heDeci
sion/
Awar
dappeal
edf
rom.I
f
noappeal
isf
il
edwi
thi
nthet
imeaspr
ovi
ded
her
ein,
suchDeci
sion/
Awar
dbecomesf
inal
and
ex
ecut
ory
.

Sect
ion18.St
enogr
aphi
cNot
es/
Transcr
ipt
.The
Vol
unt
aryAr
bit
rat
or/
Arbi
tr
atorshal
lar
ranget
he
t
aki
ngofst
enogr
aphi
cnot
es/
transcr
iptoft
he
t
est
imonywhenoneormor
epar
ti
esr
equestsuch
ar
ecor
d,andsuchpar
tyorpar
ti
est
her
eofassume
pay
mentoft
hecost
.

Sect
ion19.CostofAr
bit
rat
ionandAr
bit
rat
or'
sFee.
Unl
essagr
eedot
her
wise,
thepar
ti
esshal
lequal
l
y
shar
ethecostoft
hepr
oceedi
ngsi
ncl
udi
ngt
he
Ar
bit
rat
or'
sFee.

Sect
ion20.Accr
edi
tat
ionofVol
unt
aryAr
bit
rat
or/
s.
TheAut
hor
it
yshal
li
ssuegui
del
i
nesconcer
ning
t
heaccr
edi
tat
ionandde-
li
sti
ngofVol
unt
ary
Ar
bit
rat
or/
saswel
last
hel
i
stofqual
i
fied
Vol
unt
aryAr
bit
rat
or/
s.

COMMONPROVI
SIONS
Sect
ion1.Requi
rement
s.Acopyoft
heseRul
es
shal
lbeamongt
hedocument
srequi
redt
obekept
r
eadyandaccessi
blef
ori
nspect
ionand
ex
ami
nat
ionbyt
hemember
soft
hecooper
ati
ve
andt
heAut
hor
it
yinaccor
dancewi
thAr
t.52oft
he
Code.

Sect
ion2.I
nter
pret
ati
on.Unl
essot
her
wisest
ated
i
ntheseRul
es,
incaseofdoubtast
othemeani
ng
ofanypr
ovi
sionoft
heseRul
es,
thesameshal
lbe
r
esol
vedandi
nter
pret
edl
i
ber
all
yinf
avoroft
he
cooper
ati
vesandt
hei
rmember
s.

Sect
ion3.Suppl
etor
yRul
e.Bur
eauofLocal
Gov
ernmentFi
nanceMemor
andum Ci
rcul
arNo.
_
___andBangkoSent
ral
ngPi
l
ipi
nasCi
rcul
arNo.
682,
S-2010shal
lfr
om par
toft
heseRul
es.Speci
al
Rul
es,
Cir
cul
ars,
Order
sandot
heri
ssuancesby
appr
opr
iat
egov
ernmentagenci
esi
npur
suanceof
t
hepr
ovi
sionsoft
heCodeandt
heseRul
es,
and
noti
nconsi
stentt
her
eto,
shal
lhav
esuppl
etoy
appl
i
cat
iont
otheseRul
es.
Sect
ion4.Mandat
e.TheAut
hor
it
yismandat
edt
o
i
mpl
ementandenf
orcet
heseRul
esand
Regul
ati
ons.

Sect
ion5.Appl
i
cabi
l
ity
.Thepr
ovi
sionsoft
hisRul
e
shal
lappl
ytoRul
es1t
o13.

Sect
ion6.Separ
abi
l
ity
.Ifanypr
ovi
sionoft
hese
Rul
esandRegul
ati
onsi
sdecl
arednul
landv
oidor
unconst
it
uti
onal
,theot
herpr
ovi
sionsnotaf
fect
ed
t
her
ebyshal
lcont
inuet
obei
nfor
ceandef
fect
.

Sect
ion7.Amendment
.TheseRul
esand
Regul
ati
onsshal
lbesubj
ectt
oaut
omat
icr
evi
ew
t
hree(
3)y
ear
saf
tert
heef
fect
ivi
tyt
her
eof
.Any
amendmentt
her
eto,
shal
lbesubj
ectt
other
evi
ew
andappr
oval
oft
heJCOCC.

Sect
ion8.Ef
fect
ivi
ty.TheseRul
esandRegul
ati
ons
shal
ltakeef
fectf
if
teen(
15)day
saf
terpubl
i
cat
ion
i
ntheOf
fi
cial
Gaz
ett
eori
nanewspaperor
gener
alci
rcul
ati
on.
RECOMMENDI
NGAPPROVAL:

FORTHEBOARDOFADMI
NISTRATORS
COOPERATI
VEDEVELOPMENTAUTHORI
TY

LECI
RAV.JUAREZ
Chai
rman

Thi
sImpl
ement
ingRul
esandRegul
ati
ons(
Par
tI)
wasappr
ovedbyt
heJoi
ntCongr
essi
onal
Ov
ersi
ghtCommi
tt
eeonCooper
ati
vesdur
ingi
ts
meet
ingonFebr
uar
y16,
2010att
heSenat
eoft
he
Phi
l
ippi
nes,
PasayCi
typur
suantt
oAr
ti
cle138of
RA9520.

ForJoi
ntCongr
essi
onal
Over
sightCommi
tt
eeon
Cooper
ati
vesFort
heSenat
eoft
hePhi
l
ippi
nes:

Sen.JUANMI
GUELF.ZUBI
RI
Chai
r,Senat
ePanel
Fort
heHouseoft
he
Repr
esent
ati
ves:

Rep.ERNESTOC.PABLO
Chai
r,HousePanel

TheLawphi
lPr
oject-Ar
ell
anoLawFoundat
ion

RULESANDREGULATI
ONSI
MPLEMENTI
NG
THESPECI
ALPROVI
SIONSOFTHEPHI
LIPPI
NE
COOPERATI
VECODEOF2008
(
REPUBLI
CACTNO.9520)

TI
TLEANDDEFI
NITI
ONS

Sect
ion1.Ti
tl
e.TheseRul
esshal
lbeknownast
he
"
Rul
esandRegul
ati
onsI
mpl
ement
ingt
heSpeci
al
Pr
ovi
sionsoft
hePhi
l
ippi
neCooper
ati
veCodeof
2008.
"
Sect
ion2.Def
ini
ti
onofTer
ms.Fort
hepur
poseof
t
heseRul
esandRegul
ati
ons,
thef
oll
owi
ngt
erms
ar
edef
inedasf
oll
ows:

1.Accr
edi
tat
ion-shal
lref
ert
otheactoft
heOTC
Boar
dofDi
rect
orsr
ecogni
zet
heTr
anspor
tat
ion
Ser
viceCooper
ati
vesandwhi
chshal
ltakepl
ace
af
terr
egi
str
ati
onwi
tht
heCDAasev
idencedbya
Cer
ti
fi
cat
eofAccr
edi
tat
ion.

2.Agr
ari
anRef
orm Ar
ea-shal
lref
ert
othear
ea
subj
ectt
othecov
erageofCompr
ehensi
ve
Agr
ari
anRef
orm Pr
ogr
am (
CARP)
/Compr
ehensi
ve
Agr
ari
anRef
orm Pr
ogr
am Ex
tensi
onwi
thRef
orm
(
CARPER)
.

3.Agr
ari
anRef
orm Benef
ici
ari
es(
ARBs)-shal
l
r
efert
othequal
i
fiedbenef
ici
ari
esof
Compr
ehensi
veAgr
ari
anRef
orm Pr
ogr
am (
CARP)
asdef
inedunderSect
ion22,
Chapt
erVI
IofR.
A.
6657.
4.Agr
ari
anRef
orm Communi
ty(
ARC)-shal
lref
er
t
oacommuni
tycomposedandmanagedbyARBs
whoar
ewi
l
li
ngt
obeor
gani
zedandt
ounder
take
t
hei
ntegr
ateddev
elopmentofanar
eaand/
or
t
hei
ror
gani
zat
ionsorcooper
ati
vesasdef
ined
underRA9700,
other
wiseknownast
he
Compr
ehensi
veAgr
ari
anRef
orm Pr
ogr
am
Ex
tensi
onwi
thRef
orm(
CARPER)Act
.

5.Agr
ari
anRef
orm Cooper
ati
ve-shal
lref
ert
oone
or
gani
zedbymar
ginal
far
mer
smaj
ori
tyofwhi
ch
ar
eAgr
ari
anRef
orm Benef
ici
ari
esdul
yregi
ster
ed
wi
tht
heAut
hor
it
yfort
hepur
poseofdev
elopi
ng
anappr
opr
iat
esy
stem ofl
andt
enur
e,l
and
dev
elopment
,landconsol
i
dat
ionorl
and
managementi
nar
eascov
eredbyagr
ari
anr
efor
m
andf
orot
herpur
posesaspr
ovi
dedbyl
aw.The
sameshal
lal
sor
efert
oAgr
ari
anRef
orm
Benef
ici
ari
esCooper
ati
ve(
ARBCoop)asdef
ined
i
nDARAdmi
nist
rat
iveOr
derNo.05,
Ser
iesof
2009.
6.Aut
hor
it
y-shal
lref
ert
oCooper
ati
ve
Dev
elopmentAut
hor
it
y(CDA)
.

7.BFAD-shal
lref
ert
oBur
eauofFoodandDr
ugs.

8.Bl
anketLoan/
Whol
esal
eLoan-shal
lref
ert
oa
housi
ngl
oancont
ract
ed/
obt
ainedbyahousi
ng
cooper
ati
vei
ntendedt
oident
if
ymember
-
benef
ici
ari
esf
orl
andacqui
sit
ion,
land
i
mpr
ovement
,houseconst
ruct
ion,
home
i
mpr
ovement
,orr
enov
ati
onandot
hersi
mil
ar
pur
poses.

9.BSP-shal
lref
ert
oBangkoSent
ral
Pil
i
pinas.

10.CGS-shal
lref
ert
otheCer
ti
fi
cat
eofGood
St
andi
ngi
ssuedbyt
heAut
hor
it
ytoal
lty
pesof
cooper
ati
ves.Tr
anspor
tat
ionSer
viceCooper
ati
ve
shal
lal
sosecur
eanot
herCGSf
rom OTCorLGU,
whi
chev
eri
sappl
i
cabl
e.
11.CLOA-shal
lref
ert
otheCer
ti
fi
cat
eofLand
Owner
shi
pAwar
d.

12.Commi
ssi
on-shal
lref
ert
otheI
nsur
ance
Commi
ssi
on.

13.Cooper
ati
veEducat
ionandTr
anspor
t
Oper
ati
onSemi
nar(
CETOS)-shal
lref
ert
o
semi
nar
sconduct
edbyCDAand/
orOTCf
ort
he
pur
poseofpr
ovi
dingcont
inui
ngeducat
ionon
cooper
ati
veandt
ranspor
toper
ati
ont
oenhance
t
heknowl
edgeandcapabi
l
ityoft
heof
fi
cer
sas
wel
last
hemember
soft
heTr
anspor
tat
ionSer
vice
Cooper
ati
ve.

14.Cooper
ati
veHousi
ngPr
ogr
am -shal
lref
ert
o
anal
ter
nat
ivehousi
ngappr
oach,
inpar
tner
shi
p
wi
thgov
ernment
/non-
gov
ernmentagenci
es
i
nvol
vedi
nahousi
ngpr
ogr
am,
under
takenbya
f
inanci
all
yandor
gani
zat
ional
l
yst
abl
ecooper
ati
ve
t
oaddr
esst
hehousi
ngpr
obl
emsofi
tsmember
s
pr
imar
il
ythel
ow-
incomeear
ner
sthr
oughi
tsown
cooper
ati
veef
for
tsi
npl
anni
nganddi
rect
pr
oduct
ionofaf
for
dabl
e,decentandadequat
e
housi
nguni
ts.

15.CPCN/
Franchi
se/
Per
mit-shal
lref
ert
othe
Cer
ti
fi
cat
eofPubl
i
cConv
eni
enceandNecessi
ty
i
ssuedbyt
heappr
opr
iat
egov
ernmentagenci
es
whi
chaut
hor
izest
hegr
ant
eet
her
eoft
orendert
he
appr
opr
iat
epubl
i
cser
vice.

16.Dai
ryCooper
ati
ve-shal
lref
ert
oonewhose
member
sar
eengagedi
nthepr
oduct
ionoff
resh
mi
l
kwhi
chmaybepr
ocessedand/
ormar
ket
edas
dai
rypr
oduct
s.

17.Di
str
ibut
ionofEl
ect
ri
cit
y-shal
lref
ert
othe
conv
eyanceofel
ect
ri
cpowerbyadi
str
ibut
ion
ut
il
it
ythr
oughi
tsdi
str
ibut
ionsy
stem pur
suantt
o
t
hepr
ovi
sionsoft
heEPI
RALaw.

18.Di
str
ibut
ionofUt
il
it
y-shal
lref
ert
oanyEl
ect
ri
c
Cooper
ati
ve,
pri
vat
ecor
por
ati
on,
gov
ernment
-
ownedut
il
it
y,orex
ist
ingl
ocal
gov
ernmentuni
t
whi
chhasanex
clusi
vef
ranchi
set
ooper
atea
di
str
ibut
ionsy
stem i
naccor
dancewi
tht
heEPI
RA
Law.

19.DAR-shal
lref
ert
otheDepar
tmentofAgr
ari
an
Ref
orm.

20.DOH-shal
lref
ert
oDepar
tmentofHeal
th.

21.DOTC-shal
lref
ert
oDepar
tmentof
Tr
anspor
tat
ionandCommuni
cat
ions.

22.El
ect
ri
cCooper
ati
ve-shal
lref
ert
oone
or
gani
zedf
ort
hepr
imar
ypur
poseofunder
taki
ng
powergener
ati
on,
uti
l
izi
ngr
enewabl
eener
gy
sour
ces,
incl
udi
nghy
bri
dsy
stem,
acqui
sit
ionand
oper
ati
onofsubt
ransmi
ssi
onordi
str
ibut
iont
oit
s
househol
dmember
s.

23.Ex
tensi
onOf
fi
ces-shal
lref
ert
otheof
fi
cesof
t
heAut
hor
it
ycov
eri
ngonegeo-
pol
i
tical
regi
on
eachast
hei
rar
eaofj
uri
sdi
cti
on.

24.EPI
RA-shal
lref
ert
otheEl
ect
ri
cPower
I
ndust
ryRef
orm Actof2001.

25.GSI
S-shal
lref
ert
otheGov
ernmentSer
vice
I
nsur
anceSy
stem.

26.Hi
ghRi
se/
Condomi
nium Housi
ng-shal
lref
er
t
otheconst
ruct
ionofatl
eastf
ive(
5)st
orey
r
esi
dent
ial
bui
l
dingi
nhi
ghdensi
tyur
banandr
ural
ar
east
opr
ovi
dehousi
ngt
olowi
ncomeear
ner
s.

27.HDMF-shal
lref
ert
otheHomeDev
elopment
Mut
ual
FundorPag-
IBI
GFund.

28.HLURB-shal
lref
ert
otheHousi
ngandLand
UseRegul
ator
yBoar
d.

29.Housi
ngBenef
ici
ari
es-shal
lref
ert
oregul
ar
member
singoodst
andi
ngoft
heHousi
ng
Cooper
ati
vewhoact
ivel
yint
heBy
-l
awsanddul
y
appr
ovedi
nter
nal
pol
i
ciesoft
hecooper
ati
ve.

30.Housi
ngCooper
ati
ve-shal
lref
ert
oone
or
gani
zedt
oassi
storpr
ovi
deaccesst
ohousi
ng
f
ort
hebenef
itofi
tsr
egul
armember
swhoact
ivel
y
par
ti
cipat
eint
hesav
ingspr
ogr
am f
orhousi
ng.I
t
i
sco-
ownedandcont
rol
l
edbyi
tsmember
s.

31.I
nsur
anceCooper
ati
ve-shal
lref
ert
oone
engagedi
nthebusi
nessofi
nsur
ingl
i
feand
pr
oper
tyofcooper
ati
vesandt
hei
rmember
s.I
t
shal
lal
sor
efert
oCooper
ati
veI
nsur
anceSoci
eti
es
(
CIS)
.

32.I
nsur
anceLi
keAct
ivi
ty-shal
lref
ert
oany
act
ivi
tyi
nvol
vi
ngr
egul
arcol
l
ect
ionofpr
emi
ums,
f
ees,
cont
ri
but
ions,
orchar
gespr
iort
othe
occur
renceofcont
ingentev
entandt
hepay
ment
ofguar
ant
eedbenef
it
supont
heoccur
renceof
suchev
ent
.
33.LBP-shal
lref
ert
otheLandBankoft
he
Phi
l
ippi
nes.

34.LGU-shal
lref
ert
oLocal
Gov
ernmentUni
t.

35.LTFRB-shal
lref
ert
otheLandTr
anspor
tat
ion
Fr
anchi
singandRegul
ator
yBoar
d.

36.LTO-shal
lref
ert
otheLandTr
anspor
tat
ion
Of
fi
ce.

37.LWUA-shal
lref
ert
otheLocal
Wat
erUt
il
it
ies
Admi
nist
rat
ion,
creat
edunderPD198,
as
amended.

38.MARI
NA-shal
lref
ert
oMar
it
imeI
ndust
ry
Aut
hor
it
y.

39.Mar
ginal
Far
mer
s-shal
lref
ert
ofar
mer
swho
ar
eti
l
li
nganar
eaofnotmor
ethant
hree(
3)
hect
ares.
40.Medi
um Ri
seHousi
ng-shal
lref
ert
othe
const
ruct
ionofamax
imum off
our(
4)st
orey
r
esi
dent
ial
bui
l
dingi
nhi
ghdensi
tyur
banandr
ural
ar
east
opr
ovi
dehousi
ngt
olowi
ncomeear
ner
s.

41.Memberi
nGoodSt
andi
ng-shal
lref
ert
oone
whoi
sar
egul
armemberandhascompl
i
edwi
th
al
lther
equi
sit
esf
ormember
shi
p.Onewho
possessesal
lthequal
i
ficat
ionsandnoneoft
he
di
squal
i
ficat
ionspr
ovi
dedi
ntheCooper
ati
veBy
-
l
awsasascer
tai
nedbyt
heBoar
dofDi
rect
orsand
hast
her
ightt
ovot
eandbev
otedupon.

42.Mi
cro-
Insur
ance-shal
lref
ert
oanact
ivi
ty
pr
ovi
dingspeci
fi
cinsur
ance,
insur
ance-
li
ke,
and
ot
hersi
mil
arpr
oduct
sandser
vicest
hatmeett
he
needsoft
hel
ow-
incomesect
orf
orr
iskpr
otect
ion
andr
eli
efagai
nstdi
str
ess,
misf
ort
uneandot
her
cont
ingentev
ent
s.Thi
sshal
li
ncl
udeal
lfor
msof
i
nsur
ance,
insur
ance-
li
keandot
hersi
mil
ar
act
ivi
ti
es,
asmaybedef
inedbyconcer
ned
r
egul
ator
ybodi
eswi
thf
eat
uressuchas:
pr
emi
ums,
cont
ri
but
ions,
feesorchar
ges
col
l
ect
ed/
deduct
edpr
iort
otheoccur
renceofa
cont
ingentev
entandguar
ant
eedbenef
it
s
pr
ovi
deduponoccur
renceofacont
ingentev
ent
.

43.Mi
cro-
Insur
ancePr
oduct-shal
lref
ert
oa
f
inanci
alpr
oductorser
vicet
hatmeet
sther
isk
pr
otect
ionneedsoft
hepoorwher
etheamountof
pr
emi
ums,
cont
ri
but
ions,
feesorchar
ges
comput
edonadai
l
ybasi
sdoesnotex
ceedf
ive
per
cent(
5%)oft
hecur
rentdai
l
ymi
nimum wage
r
atef
ornon-
agr
icul
tur
alwor
ker
sinMet
roMani
l
a,
asappr
ovedbyt
heNat
ional
WagesPr
oduct
ivi
ty
Boar
d(NWPB)
/Regi
onal
Tri
par
ti
teWages
Pr
oduct
ivi
tyBoar
d(RTWPB)andt
hemax
imum
sum ofguar
ant
eedbenef
it
sisnotmor
ethan500
t
imest
hedai
l
ymi
nimum wager
atef
ornon-
agr
icul
tur
alwor
ker
sinMet
roMani
l
a.

44.NDA-shal
lref
ert
oNat
ional
Dai
ryAut
hor
it
y.

45.Nex
tofKi
n-shal
l
,forpur
posesofsuccessi
on,
r
efert
oannat
ural
per
sonwhoi
sanhei
rofan
agr
ari
anr
efor
m benef
ici
aryandwhoi
squal
i
fiedt
o
beamemberoft
hecooper
ati
veasARBunderi
ts
By
-l
awsandasdet
ermi
nedbyDAR.

46.NHA-shal
lref
ert
otheNat
ional
Housi
ng
Aut
hor
it
y.

47.NWRB-shal
lref
ert
otheNat
ional
Wat
er
Resour
cesBoar
d,cr
eat
edunderPD424.

48.OTC-shal
lref
ert
otheOf
fi
ceofTr
anspor
tat
ion
Cooper
ati
ves.

49.PCG-shal
lref
ert
othePhi
l
ippi
neCoastGuar
d.

50.Ref
erendum -shal
lref
ert
oamechani
sm of
secur
ingt
heappr
oval
oft
hegener
almember
shi
p
ofanEl
ect
ri
cCooper
ati
veoni
ssuesaf
fect
ingi
ts
r
egi
str
ati
on,
oper
ati
on,
andmanagement
.

51.Regul
arI
nsur
ancePr
oduct-shal
lref
ert
oal
l
ot
heri
nsur
ancepol
i
ciesnotcov
eredbyMi
cro-
I
nsur
ancePr
oduct
.

52.Renewabl
eEner
gyResour
ces-shal
lref
ert
o
ener
gyr
esour
cest
hatdonohav
eanupperl
i
mit
ont
het
otal
qual
i
tyt
obeused.Suchr
esour
cesar
e
r
enewabl
eonar
egul
arbasi
sandt
her
enewabl
e
r
atei
srapi
denought
oconsi
derav
ail
abi
l
ityov
er
ani
nfi
nit
eti
me.Thesei
ncl
udeamongot
her
s,
bi
omass,
sol
ar,
wind,
hydr
oandoceanener
gy.

53.RTWPB-shal
lref
ert
otheRegi
onal
Tri
par
ti
te
WagesPr
oduct
ivi
tyBoar
d.

54.SSS-shal
lref
ert
otheSoci
alSecur
it
ySy
stem.

55.Soci
ali
zedHousi
ng-shal
lref
ert
othehousi
ng
pr
ogr
am andpr
ojectunder
takenbyt
he
gov
ernmentandpr
ivat
esect
orf
ort
he
under
pri
vi
legedandhomel
esswhi
chmayal
sobe
under
takenbyaHousi
ngCooper
ati
ve.Thi
s
i
ncl
udessi
tesandser
vicesdev
elopment
,long-
t
ermf
inanci
ngandl
i
ber
ali
zedt
ermsoni
nter
est
pay
ment
s.

56.Sub-
tr
ansmi
ssi
onAsset
s-shal
lref
ert
othe
f
aci
l
iti
esr
elat
edt
othepowerdel
i
ver
yser
vice
bel
owt
het
ransmi
ssi
onv
olt
agesandbasedont
he
f
unct
ional
assi
gnmentofasset
s,i
ncl
udi
ng,
butnot
l
i
mit
edt
ost
epdownt
ransf
ormer
susedsol
elyby
l
oadcust
omer
s,associ
ated
swi
tchy
ard/
subst
ati
on,
cont
rol
andpr
otect
ive
equi
pment
,react
ivecompensat
ionequi
pmentt
o
i
mpr
ovecust
omerpowerf
act
or,
over
headl
i
nes,
andt
hel
andwher
esuchf
aci
l
iti
es/
equi
pmentar
e
l
ocat
ed.Thesei
ncl
udeNPCasset
sli
nki
ng
t
ransmi
ssi
onsy
stem andt
hedi
str
ibut
ionsy
stem
whi
char
enei
thercl
assi
fi
edasgener
ati
onnor
t
ransmi
ssi
on.

57.Suppl
yofEl
ect
ri
cit
y-shal
lref
ert
othesal
eof
el
ect
ri
cit
ybyapar
tyot
hert
hanagener
atorora
di
str
ibut
ori
nthef
ranchi
sear
eaofadi
str
ibut
ion
ut
il
it
yusi
ngt
hewi
resoft
hedi
str
ibut
ionut
il
it
y
concer
ned.
58.Techni
cal
Plan-shal
lref
ert
oal
ltechni
cal
document
srequi
redi
npl
anni
ngahousi
ngpr
oject
namel
y,t
hebarchar
tandconst
ruct
ionschedul
e,
sy
stemat
icdev
elopmentpl
an,
thear
chi
tect
ural
anddet
ail
edengi
neer
ingandhousi
ngdesi
gn,
cont
ractdocument
s,t
echni
cal
andmat
eri
al
speci
fi
cat
ion.

59.Tr
ansmi
ssi
onofEl
ect
ri
cit
y-shal
lref
ert
othe
conv
eyanceofel
ect
ri
cit
ythr
ought
hehi
ghv
olt
age
sy
stem.

60.Tr
anspor
tat
ionSer
viceCooper
ati
ve-shal
lref
er
t
oonewhi
chengagesi
nlandandsea
t
ranspor
tat
ion,
li
mit
edt
osmal
lvessel
s,asdef
ined
orcl
assi
fi
edundert
hePhi
l
ippi
neMar
it
imel
aws,
or
gani
zedundert
hepr
ovi
sionoft
heCode.

61.Ur
banAr
eas-shal
lref
ert
oal
lci
ti
esr
egar
dless
oft
hei
rpopul
ati
ondensi
tyandt
omuni
cipal
i
ties
wi
thapopul
ati
ondensi
tyofatl
east500per
sons
persquar
eki
l
omet
er.

62.Ur
bani
zabl
eAr
eas-shal
lref
ert
othesi
tesand
l
andswi
thi
ndi
spl
aymar
kedandgr
eatpot
ent
ial
of
becomi
ngur
banar
easwi
thi
ntheper
iodoff
ive(
5)
y
ear
s.

63.Wat
erTar
if
f-shal
lref
ert
othewat
err
ate
char
gedt
ocust
omer
s/member
sforwat
er
consumpt
ionasdet
ermi
nedbyt
hecooper
ati
ve
andappr
ovedbyt
heNWRB.

64.Wat
erPer
mit-shal
lref
ert
otheaut
hor
it
yto
appr
opr
iat
eandusewat
er.

65.Wat
erRi
ght-shal
lref
ert
othepr
ivi
l
egegr
ant
ed
byt
hegov
ernmentt
oappr
opr
iat
eandusewat
er.

66.Wat
erSer
viceCooper
ati
ve-shal
lref
ert
oa
dul
yregi
ster
edcooper
ati
veor
gani
zedt
oown,
oper
ate,
andmanagewat
ersuppl
ysy
stemsf
or
t
hepr
ovi
sionanddi
str
ibut
ionofpot
abl
ewat
erf
or
i
tsmember
s/consumer
s.

67.Wat
erSuppl
y-shal
lref
ert
othesuppl
yof
pot
abl
ewat
eraspr
ovi
dedbyt
hecooper
ati
vef
or
domest
ic,
indust
ri
al,
commer
cial
,andot
heruses.

68.Wor
kerBenef
ici
ari
es-shal
lref
ert
oanat
ural
per
sonwhor
ender
sser
vicef
orav
alueasan
empl
oyeeorl
abor
eri
nanagr
icul
tur
alent
erpr
iseor
f
arm wi
thi
nanARC,
regar
dlessofwhet
herhi
s
compensat
ioni
spai
donadai
l
y,weekl
y,mont
hly
or"
paky
aw"basi
s.

RULEI-HOUSI
NGCOOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.62(
13)(
par
.2)
underChapt
erVofRepubl
i
cActNo.9520,
ot
her
wiseknownast
hePhi
l
ippi
neCooper
ati
ve
Codeof2008,
theCooper
ati
veDev
elopment
Aut
hor
it
yinconsul
tat
ionwi
thNHA,
HDMF,
SSS,
LBP,
andconcer
nedcooper
ati
vesect
orher
eby
pr
omul
gat
est
hef
oll
owi
ngr
ulesandRegul
ati
ons
f
ort
hepr
opergui
danceandcompl
i
anceof
Housi
ngCooper
ati
ves.

Sect
ion1.Cov
erage.Thi
sRul
eshal
lcov
eral
l
cooper
ati
vesdul
yregi
ster
edwi
tht
heAut
hor
it
y
underR.
A.9520or
gani
zedt
oassi
storpr
ovi
de
accesst
ohousi
ngf
ort
hebenef
itofi
tsr
egul
ar
member
s.

Sect
ion2.Or
gani
zat
ion.Fi
ft
een(
15)ormor
e
nat
ural
per
sonswhoar
eFi
l
ipi
noci
ti
zens,
ofl
egal
age,
hav
ingacommonbondofi
nter
estand
act
ual
l
yresi
dingorwor
kingi
nthei
ntendedar
eaof
oper
ati
on,
mayor
gani
zeahousi
ngcooper
ati
ve.

Sect
ion3.Pur
poseandObj
ect
ives.AHousi
ng
Cooper
ati
veshal
lbeor
gani
zedf
oranyoral
loft
he
f
oll
owi
ngpur
poses:

(
1)Tof
aci
l
itat
eaccessand/
orpr
ovi
deaf
for
dabl
e
housi
nguni
tst
oit
smember
s;
(
2)Tocr
eat
ear
esour
cemobi
l
izat
ionpr
ogr
am t
o
ensur
efi
nanci
alst
abi
l
ityf
ort
hecooper
ati
ve;

(
3)Tof
ost
erandst
rengt
hent
hepr
inci
plesof
cooper
ati
vi
sm bypr
omot
ingacompr
ehensi
veand
i
ntegr
atedcommuni
tydev
elopmentpr
ogr
am
whi
char
epl
annedandmanagedbyt
he
cooper
ati
vemember
sther
ebyensur
inga
sust
ainedandsel
f-
rel
i
antcooper
ati
vecommuni
ty.

(
4)Todev
elopcol
l
abor
ati
veef
for
tsand
par
tner
shi
pwi
thot
hercooper
ati
ves,
CDA,
NHA,
GSI
S,HDMF,
SSS,
LBP,
DBP,
HLURBandot
her
gov
ernmentagenci
es,
financi
ali
nst
it
uti
onsand
ent
it
iest
her
ebyassur
ingav
ail
abi
l
ityofr
esour
ces
andl
owercostofhousi
ngdev
elopment
.

(
5)Toex
pandt
hecooper
ati
vesbusi
ness
oper
ati
onsbyst
abi
l
izi
ngt
heav
ail
abl
eresour
ces
f
ort
hecont
inui
ngpr
oduct
ionofhousi
nguni
tsf
or
i
tsmember
s.
(
6)Tounder
takesuchot
hereconomi
corsoci
al
act
ivi
ti
esasmaybenecessar
yori
nci
dent
ali
nthe
pur
sui
toft
hef
oregoi
ngpur
poses.

Sect
ion4.Housi
ngPr
ogr
amsandact
ivi
ti
es.
Housi
ngCooper
ati
vesmayengagei
nthe
f
oll
owi
ngact
ivi
ti
es:

a.Soci
ali
zedHousi
ng;

b.Medi
um Ri
sePubl
i
candPr
ivat
eHousi
ng;

c.Hi
ghRi
se/
Condomi
nium Housi
ng;

d.St
udent
/Facul
tyDor
mit
oryHousi
ng;

e.Pr
oduct
ionandDi
str
ibut
ionofHousi
ng
Mat
eri
als;
f
.Est
ateManagement
;and

g.Ot
hersi
mil
aract
ivi
ti
es.

Sect
ion5.Regi
str
ati
onJur
isdi
cti
on.Housi
ng
Cooper
ati
vesshal
lfi
l
ethei
rappl
i
cat
ionf
or
r
egi
str
ati
onwi
tht
heCDAEx
tensi
onOf
fi
ce,
whi
ch
shal
lhav
ejur
isdi
cti
onov
ert
hesai
dcooper
ati
ves.

Sect
ion6.Capi
tal
i
zat
ion.Forpur
posesof
r
egi
str
ati
onwi
tht
heAut
hor
it
y,ahousi
ng
cooper
ati
veshal
lhav
eami
nimum pai
d-up
capi
tal
i
zat
ionofFi
ft
eenThousandPesos(
P15,
000.
00)
.

Sect
ion7.Requi
rement
sforRegi
str
ati
on.The
f
oll
owi
ngshal
lbecompl
i
edwi
thuponf
il
ingof
appl
i
cat
ion:

A.NewAppl
i
cant
(
1)NameVer
if
icat
ionSl
i
p;

(
2)Ar
ti
clesofCooper
ati
onandby
-Laws;

(
3)Swor
nSt
atementoft
het
reasur
erel
ect
edby
t
hesubscr
iber
sshowi
ngt
hatatl
east`t
went
y-f
ive
percent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
hasbeensubscr
ibedandatl
eastt
went
y-f
iveper
cent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeen
pai
d:Pr
ovi
ded,
Thati
nnocaseshal
lthepai
d-up
shar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos
(
15,
000.
00)
;

(
4)Sur
elyBondofAccount
abl
eOf
fi
cer
shandl
i
ng
f
unds,
proper
ti
esandsecur
it
ies;

(
5)Pr
e-Member
shi
pEducat
ionSemi
nar(
PMES)
;

(
6)Economi
cSur
vey
;

(
7)Pr
e-Feasi
bil
i
tySt
udyoft
hehousi
ngpr
oject
s
under
taki
ngasr
evi
ewedbyNHA;

(
8)Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;
and

(
9)Regi
str
ati
onFee.

B.Ex
ist
ingCooper
ati
ve

(
1)AmendedAr
ti
clesofCooper
ati
onandBy
-l
aws;

(
2)AResol
uti
oncer
ti
fi
edbyt
heBoar
dSecr
etar
y
andbyt
hemaj
ori
tyoft
heBoar
dofDi
rect
ors
st
ati
ngt
hatt
hesai
damendment
shav
ebeendul
y
appr
ovedbyatl
eastt
wo-
thi
rds(
2/3)v
oteoft
he
member
swi
thv
oti
ngr
ight
s;

(
3)Audi
tedFi
nanci
alSt
atement
sshowi
ng
pr
ofi
tabl
eoper
ati
onsf
ort
hepastt
wo(
2)y
ear
s;
(
4)Pr
e-f
easi
bil
i
tyst
udyoft
hehousi
ngpr
oject
s
under
taki
ngasr
evi
ewedbyNHA;

(
5)Pr
oofofbusi
nesst
rackr
ecor
doft
he
cooper
ati
ve;
and

(
6)AmendmentFee.

Sect
ion8.Fi
nanci
ngandTechni
cal
Assi
stance.
TheAut
hor
it
y,i
ncoor
dinat
ionwi
thappr
opr
iat
e
gov
ernmentagenci
esandf
inanci
ali
nst
it
uti
ons,
shal
lassi
stt
hehousi
ngcooper
ati
vei
nav
ail
i
ng
t
echni
cal
andf
inanci
alassi
stancef
ori
tshousi
ng
pr
oject
s.

Fort
hispur
pose,
aspeci
alwi
ndowf
ort
he
f
inanci
ngoft
hehousi
ngpr
oject
sshal
lbecr
eat
ed
byt
heappr
opr
iat
ehousi
ngagenci
esand
gov
ernmentf
inanci
ali
nst
it
uti
ons.Thef
inanci
ng
shal
lbei
nthef
orm ofbl
anketl
oansorwhol
esal
e
l
oanst
oqual
i
fiedhousi
ngcooper
ati
ves,
wit
h
i
nter
estr
atesandt
ermsequal
to,
orbet
tert
han
t
hosegi
venf
orsoci
ali
zedhousi
ngpr
oject
s
wi
thoutneedf
ori
ndi
vi
dual
processi
ng.

Sect
ion9.Document
aryRequi
rement
sinAv
ail
i
ng
f
orTechni
cal
and/
orFi
nanci
alAssi
stance.The
cooper
ati
vei
nav
ail
i
ngt
echni
cal
and/
orf
inanci
al
assi
stanceshal
lfi
l
eit
sappl
i
cat
ionwi
tht
he
appr
opr
iat
egov
ernmentf
inanci
ali
nst
it
uti
ons.

Fort
hispur
pose,
theappl
i
cantcooper
ati
veshal
l
compl
ywi
tht
hedocument
aryr
equi
rement
sas
may
ber
equi
redbysuchappr
opr
iat
egov
ernment
f
inanci
ali
nst
it
uti
on.

Sect
ion10.Condi
ti
onsf
ort
hePr
oposedHousi
ng
Pr
oject
.Thepr
oposedhousi
ngpr
ojectoft
he
cooper
ati
veshal
lhav
ethef
oll
owi
ngf
eat
uresas
cer
ti
fi
edbyt
heNHA:

1.Av
ail
abi
l
ityofLandSui
tabl
eforHousi
ng.The
l
andpr
oposedf
orhousi
ngi
scl
assi
fi
edasasaf
e
andbui
l
dabl
ear
eaandnotaf
fect
edbyany
gov
ernmenti
nfr
ast
ruct
urepr
oject
,agr
icul
tur
alor
i
ndust
ri
alr
eser
ve.

2.LandOwner
shi
p.Thel
andi
sownedbyt
he
cooper
ati
veort
her
eisanon-
goi
ngnegot
iat
ion
bet
weent
hel
andownerandcooper
ati
vet
hrougha
Cont
ractt
oSel
lorReser
vat
ionAgr
eement
bet
weent
hel
andownerandt
hecooper
ati
veand
t
hatt
hel
andi
sfr
eef
rom anyl
i
ensand
encumbr
ances.

3.Tar
getBenef
ici
ari
es.Thepr
oposedhousi
ng
pr
ojectshoul
dhav
eatl
east30i
nit
ial
tar
get
member
-benef
ici
ari
es.

Sect
ion11.Member
shi
p.Member
shi
pinHousi
ng
Cooper
ati
vesshal
lbeopent
oal
lnat
ural
per
sons
whomeett
hequal
i
ficat
ionsf
ormember
shi
p
pr
escr
ibedi
nthecooper
ati
veBy
-l
aws.

Sect
ion12.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
Housi
ngCooper
ati
vesuchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofr
ulesandpr
ocedur
esandt
he
conductofmeet
ingsofGener
alAssembl
y,Boar
d
ofDi
rect
orsandCommi
tt
ees.

c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
orsandCommi
tt
eeMember
s;

d.Al
l
ocat
ionanddi
str
ibut
ionofsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
nter
nal
aff
air
sof
Housi
ngCooper
ati
ves.

Al
lmat
ter
srel
ati
ngt
othet
echni
cal
aspect
soft
he
housi
ngpr
ogr
am andsuchot
hersi
mil
armat
ter
s
af
fect
ingt
heHousi
ngCooper
ati
vesshal
lbe
r
egul
atedbyt
heNHAorHLURBast
hecase
may
be.
Sect
ion13.Joi
ntMoni
tor
ingandEv
aluat
ion
Commi
tt
ee.TheJoi
ntMoni
tor
ingandEv
aluat
ion
Commi
tt
eeshal
lbecomposedofCDA,
ast
hel
ead
agency
,NHA,
HLURB,
HDMF,
SSS,
GSI
S,LBP,
DBP,
concer
nedcooper
ati
vesect
orandot
her
appr
opr
iat
egov
ernmentagenci
esandf
inanci
al
i
nst
it
uti
ons.

TheCommi
tt
eeshal
lhav
ethef
oll
owi
ngf
unct
ions:

1.Tof
ormul
atej
ointst
andar
dsf
ort
hepr
oper
i
mpl
ement
ati
on,
moni
tor
ing,
organi
zat
ion,
management
,anddev
elopmentofcooper
ati
ve
housi
ngpr
ojectal
lmat
ter
srel
ati
ngt
othe
or
gani
zat
ions,
management
,anddev
elopmentof
t
hecooper
ati
vehousi
ngpr
oject
s.

2.Tor
ecommendchangest
othi
sIRRf
rom t
imet
o
t
imei
ftheneedar
ises.

3.Toassi
sti
nset
tl
ingi
nter
/int
racooper
ati
ve
di
sput
es.

4.Tosubmi
tannual
accompl
i
shmentr
epor
ttot
he
Aut
hor
it
y.

Sect
ion14.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
l
,asf
arasi
mpr
act
icabl
e,
beset
tl
edami
cabl
ythr
ought
heconci
l
iat
ionand
medi
ati
onmechani
sm embodi
edi
ntheBy
-l
awsof
t
hecooper
ati
ve,
whi
chshal
lbei
naccor
dancewi
th
t
heCDAGui
del
i
nesf
ort
heI
mpl
ement
ati
onof
Conci
l
iat
ion-
Medi
ati
onf
orCooper
ati
veDi
sput
es,
andi
nappl
i
cabl
elaws.

Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionori
ncour
tofcompet
entj
uri
sdi
cti
on.

Howev
er,
incaseswher
ethedi
sput
e/sf
all
wit
hin
t
hej
uri
sdi
cti
onoft
heNHAorHLURB,
thesame
shal
lber
efer
redt
othesai
dagencyandi
tshal
lbe
r
esol
vedi
naccor
dancewi
tht
heNHAorHLURB
r
egul
ati
ons.

RULEI
I-AGRARI
ANREFORM COOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.93(
6)andAr
t.
94(
par
.2)underChapt
erXIofRepubl
i
cAct
.No.
9520,
other
wiseknownast
hePhi
l
ippi
ne
Cooper
ati
veCodeof2008,
theAut
hor
it
yin
consul
tat
ionwi
tht
heDAR,
BSP,
LBP,
andt
he
concer
nedcooper
ati
vesect
orher
ebypr
omul
gat
es
t
hef
oll
owi
ngr
ulesandr
egul
ati
onsf
orpr
oper
gui
danceandcompl
i
anceofAgr
ari
anRef
orm
Cooper
ati
ves.

Sect
ion1.Cov
erage.Thi
sRul
eshal
lcov
eral
l
Agr
ari
anRef
orm Cooper
ati
vesdul
yregi
ster
edwi
th
t
heAut
hor
it
yunderR.
A.No.9520.

Sect
ion2.Or
gani
zat
ion.Atl
eastf
if
teen(
15)
mar
ginal
far
mer
smaj
ori
tyofwhi
char
eAgr
ari
an
Ref
orm Benef
ici
ari
esi
nanagr
ari
anr
efor
m ar
eas
mayor
gani
zedanAgr
ari
anRef
orm Cooper
ati
ve.
Sect
ion3.Pur
posesandObj
ect
ives.Agr
ari
an
Ref
orm Cooper
ati
vesshal
lbeor
gani
zedf
oranyor
al
loft
hef
oll
owi
ngpur
poses:

(
1)Todev
elopanappr
opr
iat
esy
stem ofl
and
t
enur
e,l
anddev
elopment
,landconsol
i
dat
ionor
l
andmanagementi
nar
eascov
eredbyagr
ari
an
r
efor
m;

(
2)Tocoor
dinat
eandf
aci
l
itat
ethedi
ssemi
nat
ion
ofsci
ent
if
icmet
hodsofpr
oduct
ionandpr
ovi
de
assi
stancei
nthepr
ocessi
ng,
stor
age,
transpor
t,
andmar
ket
ingoff
arm pr
oduct
sforAgr
ari
an
Ref
orm Benef
ici
ari
esandt
hei
rimmedi
atef
ami
l
ies,
her
einaf
terr
efer
redt
oas"
benef
ici
ari
es"
;

(
3)Topr
ovi
def
inanci
alf
aci
l
iti
est
obenef
ici
ari
es
f
orpr
ovi
dentorpr
oduct
ionpur
posesat
r
easonabl
ecost
s;

(
4)Toar
rangeandf
aci
l
itat
etheex
pedi
ti
ous
t
ransf
erofappr
opr
iat
eandsui
tabl
etechnol
ogyt
o
benef
ici
ari
esandmar
ginal
far
mer
satt
hel
owest
possi
blecost
s;

(
5)Topr
ovi
desoci
alsecur
it
ybenef
it
s,heal
th,
medi
cal
andsoci
ali
nsur
ancebenef
it
sandot
her
soci
alandeconomi
cbenef
it
sthatpr
omot
ethe
gener
alwel
far
eoft
heagr
ari
anr
efor
m
benef
ici
ari
esandmar
ginal
far
mer
s;

(
6)Topr
ovi
deanon-
for
mal
educat
ion,
v
ocat
ional
/techni
cal
trai
ningandl
i
vel
i
hood
pr
ogr
am t
obenef
ici
ari
esandmar
ginal
far
mer
s;

(
7)Toactaschannel
sforex
ter
nal
assi
stanceand
ser
vicest
othebenef
ici
ari
esandmar
ginal
far
mer
s;

(
8)Tounder
takeacompr
ehensi
veandi
ntegr
ated
dev
elopmentpr
ogr
am i
nagr
ari
anr
efor
m and
r
eset
tl
ementar
easwi
thspeci
alconcer
nfort
he
dev
elopmentofagr
o-based,
mar
ine-
based,
and
cot
tage-
basedi
ndust
ri
es;
(
9)Tor
epr
esentt
hebenef
ici
ari
esonanyoral
l
mat
ter
sthataf
fectt
hei
rint
erest
;and

(
10)Tounder
takesuchot
hereconomi
corsoci
al
act
ivi
ti
esasmaybenecessar
yori
nci
dent
ali
nthe
pur
sui
toft
hef
oregoi
ngpur
poses.
1av
vphi

Sect
ion4.Regi
str
ati
onJur
isdi
cti
on.Agr
ari
an
Ref
orm Cooper
ati
vesshal
lfi
l
ethei
rdul
y
accompl
i
shedappl
i
cat
ionf
orr
egi
str
ati
onwi
tht
he
CDAEx
tensi
onOf
fi
ce,
whi
chshal
lhav
e
j
uri
sdi
cti
onov
ert
hesai
dcooper
ati
ves.

Sect
ion5.Regi
str
ati
onRequi
rement
s.The
f
oll
owi
ngshal
lbecompl
i
edwi
thuponf
il
ingof
appl
i
cat
ion:

(
1)NameVer
if
icat
ionSl
i
p;

(
2)Ar
ti
clesofCooper
ati
onandBy
-Laws;
(
3)Swor
nSt
atementoft
heTr
easur
erel
ect
edby
t
hesubscr
iber
sshowi
ngt
hatatl
eastt
went
y-f
ive
percent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
hasbeensubscr
ibedandatl
eastt
went
y-f
iveper
cent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeen
pai
d:Pr
ovi
ded,
Thati
nnocaseshal
lthepai
d-up
shar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos
(
P15,
000.
00)
;

(
4)Sur
etyBondofAccount
abl
eOf
fi
cer
s;

(
5)Pr
e-Member
shi
pEducat
ionSemi
nar(
PMES)
;

(
6)Economi
cSur
vey
;

(
7)Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;

(
8)Mot
herCLOAi
ncaseofpl
ant
ati
onbasedARBs;
(
9)Wr
it
tenv
eri
fi
cat
ionf
rom t
heDARt
otheef
fect
t
hatt
hecooper
ati
veor
gani
zat
ioni
sneededand
desi
redbyt
hebenef
ici
ari
es;
resul
tsofast
udyt
hat
hasbeeconduct
edf
air
lyi
ndi
cat
etheeconomi
c
f
easi
bil
i
tyofor
gani
zi
ngt
hesameandt
hatwi
l
lbe
economi
cal
l
yvi
abl
eint
heoper
ati
ons;
thatatl
east
maj
ori
tyoft
hemember
sar
eAgr
ari
anRef
orm
Benef
ici
ari
es,
andt
hesamemaynowbe
or
gani
zedandr
egi
ster
edi
naccor
dancewi
tht
he
r
equi
rement
soft
hePhi
l
ippi
neCooper
ati
veCode
of2008;
and

(
10)Regi
str
ati
onf
ee.

Sect
ion6.Cooper
ati
veName.Al
lcooper
ati
ves
or
gani
zedf
oranyoral
loft
hepur
poses/
obj
ect
ives
enumer
atedunderSect
ion3oft
hisRul
eshal
l
al
way
sbeart
hewor
d"Agr
ari
anRef
orm"whet
her
engagedi
ntheoper
ati
onofpubl
i
cut
il
it
iesand
ser
vicesand/
orot
herbusi
nessact
ivi
ti
es/
ser
vices.
Ex
ist
ingARBCoopsshal
lamendt
hei
rcooper
ati
ve
namet
oconf
ormt
othi
sSect
ion.

Sect
ion7.Amendment
sofAr
ti
clesofCooper
ati
on
andBy
-l
aws.Agr
ari
anRef
orm Cooper
ati
ve
i
ntendi
ngt
oengagei
ntheoper
ati
onofpubl
i
c
ut
il
it
iesandser
vicesshal
lamendi
tsAr
ti
clesof
Cooper
ati
onandBy
-Lawst
olegal
l
ypr
ovi
def
or
suchser
vices.I
Tshal
lal
socompl
ywi
tht
heot
her
r
equi
rement
simposedbyt
heAut
hor
it
yandt
he
appr
opr
iat
egov
ernmentagenci
esf
or
cooper
ati
vesengagedi
npubl
i
cut
il
it
iesand
ser
vices.

Sect
ion8.Capi
tal
i
zat
ion.Forpur
posesof
r
egi
str
ati
onwi
tht
heAut
hor
it
y,Agr
ari
anRef
orm
Cooper
ati
vesshal
lhav
eami
nimum pai
dup
capi
tal
i
zat
ionofFi
ft
eenThousandPesos
(
P15,
000.
00)
.

Howev
er,
toengagei
ntheoper
ati
onofpubl
i
c
ut
il
it
iesandser
vices,
themi
nimum capi
tal
i
zat
ion
shal
lbei
naccor
dancewi
tht
heRul
esand
Regul
ati
onspr
escr
ibedbyt
heAut
hor
it
yforMul
ti
-
Pur
posecooper
ati
vesunderRul
e3oft
heRul
es
andRegul
ati
onsI
mpl
ement
ingCer
tai
nPr
ovi
sions
oft
hePhi
l
ippi
neCooper
ati
veCodeof2008
(
Republ
i
cActNo.9520)andbyt
heconcer
ned
gov
ernmentagency
.

I
ncaset
heARBCoopengagesi
nTr
anspor
t
Ser
vice,
itshal
lcompl
ywi
tht
heot
her
r
equi
rement
spr
escr
ibedi
nSect
ion5,
Rul
e5of
t
heseRul
esandRegul
ati
on.

Sect
ion9.Member
shi
pTer
minat
ionandVal
uat
ion
and/
orTr
ansf
erofShar
eCapi
tal
.Agr
ari
anRef
orm
Cooper
ati
ve,
othert
hanpl
ant
ati
on-
basedAgr
ari
an
Ref
orm Cooper
ati
veshal
lbegov
ernedbyAr
ti
cles
30,
31and74ofRA9520andt
heBy
-l
awsoft
he
Cooper
ati
ve.

Howev
er,
plant
ati
on-
basedAgr
ari
anRef
orm
Cooper
ati
vewhi
chi
scov
eredbycol
l
ect
ive
Cer
ti
fi
cat
eofLandOwner
shi
pAwar
d(CLOA)
,shal
l
begov
ernedbyt
hej
ointDAR-
CDAAdmi
nist
rat
ive
Or
derNo.09,
Ser
iesof2008ent
it
led"
Rev
ised
Rul
esandRegul
ati
onsonARBMember
shi
pSt
atus
andVal
uat
ionand/
orTr
ansf
erofPai
d-UpShar
e
Capi
tal
inAgr
ari
anRef
orm Pl
ant
ati
on-
Based
Cooper
ati
vesdat
edSept
ember4,
2008"i
ncl
udi
ng
anyamendment
sther
etoorsubsequent
i
ssuances.

Sect
ion10.Pr
ivi
l
eges.Subj
ectt
oreasonabl
eter
ms
andcondi
ti
onst
hatmaybei
mposedbyt
heDAR
andt
heAut
hor
it
y,anAgr
ari
anRef
orm
Cooper
ati
vesdul
yregi
ster
edwi
tht
heAut
hor
it
y
maybegi
venex
clusi
ver
ightt
odoanyoral
loft
he
f
oll
owi
ngeconomi
cact
ivi
ti
esi
nagr
ari
anr
efor
m
andr
eset
tl
ementar
eas:

(
1)Suppl
yanddi
str
ibut
ionofconsumer
,
agr
icul
tur
al,
aqua-
cul
tur
al,
andi
ndust
ri
algood,
pr
oduct
ioni
nput
s,andr
awmat
eri
alandsuppl
i
es,
machi
ner
y,equi
pment
,faci
l
iti
esandot
her
ser
vicesandot
herser
vicesandr
equi
rement
sof
t
hebenef
ici
ari
esandmar
ginal
far
mer
sat
r
easonabl
epr
ices;
(
2)Mar
ket
ingoft
hepr
oduct
sandser
vicesoft
he
benef
ici
ari
esi
nlocal
andf
orei
gnmar
ket
s;

(
3)Pr
ovi
sionofessent
ial
publ
i
cser
vicesatcost
suchaspower
,ir
ri
gat
ion,
pot
abl
ewat
er,
passengerand/
orcar
got
ranspor
tat
ionbyl
andor
sea,
communi
cat
ionser
vices,
andpubl
i
cheal
th
andmedi
cal
car
eser
vices;

(
4)Management
,conser
vat
ion,
andcommer
cial
dev
elopmentofmar
ine,
for
est
ry,
miner
al,
wat
er
andot
hernat
ural
resour
cessubj
ectt
ocompl
i
ance
wi
tht
hel
awsandr
egul
ati
onsonenv
ironment
al
andecol
ogi
cal
cont
rol
s;and

(
5)Pr
ovi
sionoff
inanci
al,
technol
ogi
cal
,andot
her
ser
vicesandf
aci
l
iti
esr
equi
resbyt
hebenef
ici
ari
es
i
nthei
rdai
l
yli
vesandl
i
vel
i
hood.Sucht
ermsand
condi
ti
onsshal
lbej
oint
lyf
ormul
atedbyt
heDAR
andt
heAut
hor
it
y.
Sect
ion11.Pr
efer
ent
ial
Right
/Tr
eat
ment
.Inan
agr
ari
anr
efor
m andr
eset
tl
ementar
eas,
adul
y
r
egi
ster
edAgr
ari
anRef
orm Cooper
ati
vesshal
l
hav
epr
efer
ent
ial
right
/tr
eat
mentf
ormt
he
gov
ernmenti
nthef
oll
owi
ngmat
ter
s:

(
1)I
ntheconst
ruct
ion,
mai
ntenanceand
managementofr
oads,
bri
dges,
canal
s,whar
ves,
por
ts,
reser
voi
rs,
irr
igat
ionsy
stems,
wat
erwor
ks
sy
stems,
andot
heri
nfr
ast
ruct
ureswi
th
gov
ernmentf
undi
ng

Thet
echni
cal
assi
stance,
faci
l
iti
esand
equi
pment
stosuchagr
ari
anr
efor
m cooper
ati
ves
shal
lbepr
ovi
dedbyt
heGov
ernment
.

(
2)I
nthegr
antofFr
anchi
seandCer
ti
fi
cat
eof
Publ
i
cConv
eni
enceandNecessi
tyf
ort
he
oper
ati
onofpubl
i
cut
il
it
iesandser
vices:
Prov
ided,
t
hati
tmeet
sther
equi
rement
sandcondi
ti
ons
i
mposedbyt
heappr
opr
iat
egov
ernmentagency
gr
ant
ingt
heFr
anchi
seorCer
ti
fi
cat
eofPubl
i
c
Conv
eni
enceandNecessi
ty,
I
ncaseofel
ect
ri
cser
vicepr
ovi
deri
nthear
ea,
it
shal
l
,upont
her
equestofanAgr
ari
anRef
orm
Cooper
ati
ve,
immedi
atel
ypr
ovi
deel
ect
ri
cser
vices
t
otheagr
ari
anr
efor
m ar
eas.I
ftheel
ect
ri
cser
vice
pr
ovi
dedf
ail
stopr
ovi
det
heser
vicesr
equest
ed
wi
thi
naper
iodofone(
1)y
ear
,theAgr
ari
an
Ref
orm Cooper
ati
vemayunder
taket
opr
ovi
det
he
el
ect
ri
cser
vicesi
nthear
eat
hroughi
tsown
r
esour
ces.Al
li
nvest
ment
smadebyt
hesai
d
Agr
ari
anRef
orm Cooper
ati
vef
ort
he
el
ect
ri
fi
cat
ionoft
heagr
ari
anr
efor
mreset
tl
ement
ar
easshal
lbesubj
ectt
otheel
ect
ri
cser
vices
pr
ovi
deroncei
ttakesont
heser
vice.

Sect
ion12.LeaseofPubl
i
cLands.Agr
ari
an
Ref
orm Cooper
ati
vemayl
easepubl
i
clandsf
ora
per
iodnotex
ceedi
ngt
went
yfi
ve(
25)y
ear
s,
subj
ectt
orenewal
foranot
hert
went
yfi
ve(
25)
y
ear
sonl
y,pr
ovi
dedt
heappl
i
cat
ionf
orr
enewal
shal
lbemadeone(
1)y
earbef
oret
heex
pir
ati
onof
t
hel
easeandsuchl
easeshal
lbef
ort
heex
clusi
ve
useandbenef
itoft
hebenef
ici
ari
esandmar
ginal
f
armer
ssubj
ectt
othepr
ovi
sionsoft
heCARP,
as
amended.
.

Sect
ion13.Cooper
ati
veEst
ates.Landhol
dingsl
i
ke
pl
ant
ati
ons,
est
ates,
orhaci
endasacqui
redbyt
he
St
atei
naccor
dancewi
tht
heCARP,
asamended,
f
ort
hebenef
itoft
hewor
ker
sshal
lbecol
l
ect
ivel
y
ownedt
hroughaMot
herCLOAbyt
hewor
ker
benef
ici
ari
esunderacooper
ati
veset
-up.

Sect
ion14.Assi
stance.TheGov
ernmentshal
l
pr
ovi
det
henecessar
yfi
nanci
alandt
echni
cal
assi
stancet
oAgr
ari
anRef
orm Cooper
ati
vest
o
enabl
ethem t
odi
schar
get
hepur
posesand
obj
ect
ivesunderSect
ion3oft
hisRul
ewhi
chshal
l
bei
naccor
dancewi
thaj
ointpr
ogr
am f
ort
he
or
gani
zat
ionandf
inanci
ngoft
heAgr
ari
anRef
orm
Cooper
ati
ves.Thej
ointpr
ogr
am shal
lbegear
ed
t
owar
dst
hegr
adual
assumpt
ionoff
ull
owner
shi
p
andmanagementcont
rol
oft
hecooper
ati
ve
est
atebyt
heAgr
ari
anRef
orm Cooper
ati
ves.

Sect
ion15.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
Agr
ari
anRef
orm Cooper
ati
vesuchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofr
ulesandpr
ocedur
esandt
he
conductofmeet
ingsofGener
alAssembl
e,Boar
d
ofDi
rect
orsandCommi
tt
ees;

c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
ors,
andCommi
tt
eeMember
s;

d.Al
l
ocat
ionanddi
str
ibut
ionofsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
nter
nal
aff
air
sof
Agr
ari
anRef
orm Cooper
ati
ves.

Al
lmat
ter
srel
ati
ngt
olandacqui
sit
ion,
dev
elopmentofanappr
opr
iat
esy
stem ofl
and
t
enur
e,l
anddev
elopment
,landconsol
i
dat
ion,
or
l
andmanagementi
nar
eascov
eredbyagr
ari
an
r
efor
m andsuchot
hersi
mil
armat
ter
saf
fect
ing
t
heAgr
ari
anRef
orm Cooper
ati
vesshal
lbe
r
egul
atedbyt
heDAR.

Al
lmat
ter
srel
ati
ngt
olandv
aluat
ionand
assessmentshal
lber
egul
atedbyt
heLBP.

Sect
ion16.Fi
nanci
ngPr
ogr
am.AnyFi
nanci
ng
Pr
ogr
am t
obeav
ail
edofbyARBCoopsshal
lbei
n
accor
dancewi
tht
hej
ointpr
ogr
am t
obe
dev
elopedbyt
heDAR,
theBSP,
andt
heAut
hor
it
y.

Sect
ion17.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
lot
hert
hanl
and
di
sput
es,
asf
araspr
act
icabl
e,beset
tl
edami
cabl
y
t
hrought
heconci
l
iat
ionandmedi
ati
on
mechani
sm embodi
edi
ntheBy
-l
awsoft
he
cooper
ati
ve,
whi
chshal
lbei
naccor
dancewi
tht
he
CDAGui
del
i
nesf
ort
heI
mpl
ement
ati
onof
Conci
l
iat
ion-Medi
ati
onf
orCooper
ati
veDi
sput
es
andi
nappl
i
cabl
elaws.
Shoul
dsuchconci
l
iat
ion-medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionori
ncour
tofcompet
entj
uri
sdi
cti
on.

Howev
er,
incaseswher
ethedi
sput
e/sf
all
wit
hin
t
hej
uri
sdi
cti
onoft
heDAR,
thesameshal
lbe
r
efer
redt
othesai
dagencyandi
tshal
lber
esol
ved
i
naccor
dancewi
tht
heDARr
egul
ati
on.

RULEI
II
-INSURANCECOOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.108under
Chapt
erXI
IIofRepubl
i
cAct
.No.9520,
other
wise
knownast
hePhi
l
ippi
neCooper
ati
veCodeof2008,
t
heCommi
ssi
onandt
heAut
hor
it
yinconsul
tat
ion
wi
tht
heconcer
nedcooper
ati
vesect
orher
eby
pr
omul
gat
ethef
oll
owi
ngr
ulesandr
egul
ati
onsf
or
t
hepr
opergui
danceandcompl
i
anceoft
he
I
nsur
anceCooper
ati
ves.

Sect
ion1.Cov
erage.Thi
sRul
esshal
lcov
eral
l
I
nsur
anceCooper
ati
vesdul
yregi
ster
edunderR.
A.
9520or
gani
zedf
ort
hepur
poseofengagi
ngi
nthe
busi
nessofi
nsur
ingl
i
feandpr
oper
tyof
cooper
ati
vesandt
hei
rmember
s.

Sect
ion2.Or
gani
zat
ion.Fi
ft
een(
15)ormor
edul
y
r
egi
ster
edcooper
ati
vesmayor
gani
zeas
I
nsur
anceCooper
ati
ve.

Sect
ion3.Pur
posesandObj
ect
ives.AnI
nsur
ance
Cooper
ati
veshal
lpr
ovi
dei
tsconst
it
uti
ng
member
sdi
ff
erentt
ypesofi
nsur
ancecov
erage
consi
sti
ngof
,butnotl
i
mit
edt
o,l
i
fei
nsur
ancewi
th
speci
algr
oupcov
erage,
loanpr
otect
ion,
r
eti
rementpl
ans,
endowmentwi
thheal
thand
acci
dentcov
erage,
fir
einsur
ance,
mot
orv
ehi
cle
cov
erage,
bondi
ng,
crop,
li
vest
ockpr
otect
ionand
equi
pmenti
nsur
ance.

I
tmayal
sopr
ovi
de"
micr
o-i
nsur
ancepr
oduct
s"
andr
egul
ari
nsur
ancet
ocooper
ati
vesandi
ts
member
s.
Sect
ion4.Member
shi
p.Member
shi
pinI
nsur
ance
Cooper
ati
veshal
lbeopent
oal
ldul
yregi
ster
ed
cooper
ati
vesofal
lty
pesandcat
egor
ies

Sect
ion5.Regi
str
ati
onJur
isdi
cti
on.Anyappl
i
cant
cooper
ati
vepr
oposi
ngt
oengagei
ntot
he
busi
nessofi
nsur
ingl
i
feandpr
oper
tyof
cooper
ati
vesandt
hei
rmember
sshal
lfi
l
ethei
r
dul
yaccompl
i
shedappl
i
cat
ionf
orr
egi
str
ati
on
wi
tht
heCDACent
ral
Off
iceRegi
str
ati
onDi
vi
sion.

Sect
ion6.Capi
tal
i
zat
ion.AnI
nsur
ance
Cooper
ati
ver
egi
ster
edwi
tht
heAut
hor
it
ypur
suant
t
othi
sRul
eshal
lsecur
eaCer
ti
fi
cat
eofAut
hor
it
y
f
rom t
heCommi
ssi
onwi
thi
ntwo(
2)y
ear
sfr
om
t
hedat
eofi
tsr
egi
str
ati
on.Fai
l
uret
osecur
ethe
sameshal
lbeagr
oundf
ort
he
r
evocat
ion/
cancel
l
ati
onoft
hecer
ti
fi
cat
eof
Regi
str
ati
on.

Sai
dCer
ti
fi
cat
eofAut
hor
it
yshal
lbev
ali
dunt
ilt
he
30t
hdayofJuneoft
hey
earf
oll
owi
ngi
tsi
ssuance.
Sect
ion8.Suspensi
onorRev
ocat
ionofCer
ti
fi
cat
e
ofAut
hor
it
y.TheCommi
ssi
onmay
,af
terdue
not
iceandhear
ing,
suspendorr
evoket
he
Cer
ti
fi
cat
eofAut
hor
it
yissuedt
oanI
nsur
ance
cooper
ati
vef
orv
iol
ati
onofanyex
ist
ingl
aws,
r
ulesorr
egul
ati
ons,
oranypr
ovi
sionsoft
he
I
nsur
anceCode.

Sect
ion9.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
I
nsur
anceCooper
ati
vesuchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofr
ulesandpr
ocedur
esandt
he
conductofmeet
ingsoft
heGener
alAssembl
y,
Boar
dofDi
rect
orsandCommi
tt
ees;

c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
ors,
andCommi
tt
eeMember
s;
d.Al
l
ocat
ionanddi
str
ibut
ionofnetsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
nter
nal
aff
air
sof
I
nsur
anceCooper
ati
ves.

Al
lmat
ter
srel
ati
ngt
otheor
gani
zat
ionand
oper
ati
onsconcer
ningi
nsur
ancebusi
nessofsuch
I
nsur
anceCooper
ati
veshal
lber
egul
atedbyt
he
Commi
ssi
onaspr
ovi
dedf
ori
ntheI
nsur
ance
Codeandot
herr
elat
edl
aws.

Sect
ion10.Joi
ntCommi
tt
ee.I
nor
dert
oful
l
y
i
mpl
ementt
hepr
ovi
sionsoft
hisRul
e,aJoi
nt
Commi
tt
ee,
tobecomposedoft
wo(
2)
r
epr
esent
ati
veseachf
rom t
heAut
hor
it
yandt
he
Commi
ssi
onandar
epr
esent
ati
vef
rom t
he
I
nsur
anceCooper
ati
vesshal
lbef
ormed.The
r
epr
esent
ati
vef
rom t
heAut
hor
it
yshal
lChai
rof
t
heCommi
tt
ee.

TheJoi
ntCommi
tt
eeshal
lbeconst
it
utedwi
thi
n
t
hir
ty(
30)day
suponef
fect
ivi
tyoft
heseRul
esand
Regul
ati
ons.

Sect
ion11.Funct
ionsoft
heJoi
ntCommi
tt
ee.The
Joi
ntCommi
tt
eeshal
lhav
ethef
oll
owi
ng
f
unct
ions:

1.Toov
erseet
hei
mpl
ement
ati
onoft
hisRul
e;

2.Toensur
ecompl
i
ancewi
tht
headmi
nist
rat
ive
andot
herr
equi
rement
soft
heAut
hor
it
yandt
he
Commi
ssi
on;

3.Tomaker
ecommendat
ionont
heamendment
oft
hisRul
easmay
benecessar
y;and

4.Suchot
herf
unct
ionast
heneedar
ises.

Sect
ion12.Li
mit
ati
on.Cooper
ati
vesi
ntendi
ngt
o
engagei
ninsur
ance,
insur
ancel
i
ke,
andot
her
si
mil
aract
ivi
ti
esshal
lregi
sterwi
tht
heAut
hor
it
y
andsecur
eaCer
ti
fi
cat
eofAut
hor
it
yfr
om t
he
Commi
ssi
on.

Howev
er,
CISar
enotal
l
owedt
oser
vet
he
i
nsur
anceneedsofot
hercooper
ati
vest
hatar
enot
member
-owner
soft
heCI
S.ACI
Sser
vingt
he
i
nsur
anceneedsofnon-
membercooper
ati
vesand
t
hegener
alpubl
i
cshal
lber
equi
redt
ogeta
commer
cial
insur
ancel
i
censef
rom t
heI
nsur
ance
Commi
ssi
on.

Pr
imar
yCooper
ati
veswhi
char
enotr
egi
ster
edand
l
i
censedt
ooper
ateasI
nsur
anceCooper
ati
ve,
are
pr
ohi
bit
edt
oengagei
ninsur
ance,
insur
ancel
i
ke
andot
hersi
mil
aract
ivi
ti
eswi
tht
hei
rmember
s.
Howev
er,
thoseal
readyengagi
ngi
nsuchshal
lbe
gi
vent
wo(
2)y
ear
str
ansi
ti
onper
iodt
ounder
take
anyoft
hef
oll
owi
ngopt
ions:

Toor
gani
zeani
nsur
ancecooper
ati
vewi
thot
her
pr
imar
ycooper
ati
vest
hathav
ethesame
i
nsur
ance-
li
kebusi
nessact
ivi
ty;
(
2)Toj
oinanex
ist
ingI
nsur
anceCooper
ati
ve;

(
3)Topar
tnerwi
thl
i
censedmi
cro-
insur
ance
pr
ovi
der
s;and

(
4)Tobuyami
cro-
Insur
ancepr
oductt
hrougha
l
i
censedagentorbr
oker
.

Al
lex
ist
ingI
nsur
anceCooper
ati
vewi
thmember
s
whi
char
enon-
cooper
ati
veand/
orcooper
ati
ve
or
ient
edsoci
eti
esandor
gani
zat
ionsar
eher
eby
gi
venf
ive(
5)y
earper
iodt
oter
minat
eandr
emov
e
suchent
it
iesf
rom t
hei
rmemberr
egi
str
y.Fai
l
ure
t
ocompl
ywi
thi
nthegi
venper
iodshal
lconst
it
ute
av
iol
ati
onoft
hisRul
eandshal
lbedeal
twi
th
accor
dancewi
tht
hepr
ovi
sionofRA9520and
ot
herappl
i
cabl
elaws.

Sect
ion13.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
lbeset
tl
edasf
aras
pr
act
icabl
ethr
oughconci
l
iat
ion-
medi
ati
on
mechani
sm embodi
edi
nthecooper
ati
veby
-l
aws,
whi
chshal
lbei
naccor
dancewi
tht
heCDA
Gui
del
i
nesf
ort
heI
mpl
ement
ati
onofConci
l
iat
ion
ofCooper
ati
veDi
sput
es,
andappl
i
cabl
elaws.
Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionbyt
heAut
hor
it
yori
ncour
tof
compet
entj
uri
sdi
cti
on.

Howev
er,
incaseswher
ethedi
sput
e/sf
all
wit
hin
t
hej
uri
sdi
cti
onoft
heCommi
ssi
on,
thesameshal
l
ber
efer
redt
othesai
dagencyandi
tshal
lbe
r
esol
vedi
naccor
dancewi
tht
heCommi
ssi
on
r
egul
ati
on.

RULEI
V-WATERSERVI
CECOOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.111(
3)under
Chapt
erXI
VofRepubl
i
cAct
.No.9520,
other
wise
knownast
hePhi
l
ippi
neCooper
ati
veCodeof2008,
t
heAut
hor
it
yinconsul
tat
ionwi
tht
heNWRB,
the
LWUA,
andconcer
nedcooper
ati
veher
eby
pr
omul
gat
est
hef
oll
owi
ngr
ulesandr
egul
ati
ons
f
ort
hepr
opergui
danceandcompl
i
anceoft
he
Wat
erSer
viceCooper
ati
ve.

Sect
ion1.Cov
erage.Thi
sRul
eshal
lappl
ytoal
l
cooper
ati
vedul
yregi
ster
edwi
tht
heAut
hor
it
y
underR.
A.9520whosemai
npur
poseoroneofi
ts
pur
posesi
stoown,
oper
ate,
andmanagewat
er
suppl
ysy
stemsf
ort
hepr
ovi
sionanddi
str
ibut
ion
ofpot
abl
ewat
ert
oit
smember
sandot
her
cust
omer
s.

Sect
ion2.Or
gani
zat
ion.Fi
ft
een(
15)ormor
e
nat
ural
per
sonwhoar
eFi
l
ipi
noci
ti
zens,
ofl
egal
age,
hav
ingacommonbondofi
nter
estand
act
ual
l
yresi
dingorwor
kingi
nthei
ntendedar
eaof
oper
ati
on,
mayor
gani
zeaWat
erSer
vice
Cooper
ati
ve.

Sect
ion3.Member
shi
pinWat
erSer
vice
Cooper
ati
ve.Member
shi
pinWat
erSer
vice
Cooper
ati
vei
scomposedoft
woki
nds:
a.Regul
arMember-r
efer
stoanat
ural
per
son
(
member
-consumer
)wi
thwat
erser
vice
connect
ionwi
tht
her
ightt
ovot
eduponand
ent
it
ledt
oal
lther
ight
sandpr
ivi
l
egesof
member
shi
pundert
heCode.

b.Associ
ateMember-r
efer
stoanat
ural
per
son
ot
hert
hanar
egul
armemberoft
hehousehol
d.I
t
shal
lal
sor
efert
omember
-inst
it
uti
onorent
it
y
av
ail
i
ngoft
heser
vicesofWat
erser
vice
Cooper
ati
ve,
suchas,
butnotl
i
mit
edt
o:
cor
por
ati
on,
indust
ri
alandcommer
cial
est
abl
i
shment
,joi
ntv
ent
ure,
othercooper
ati
ve,
pl
acewor
shi
p,l
ocal
gov
ernmentbui
l
dingor
f
aci
l
ity
,et
c,asmay
ber
epr
esent
edbyt
heheadof
suchest
abl
i
shmentorent
it
y,buti
snotent
it
ledt
o
v
oteandbev
otedupon.Howev
er,
shal
lbeent
it
led
t
othepr
efer
ent
ial
right
sandpr
ivi
l
egesas
i
ndi
cat
edi
ntheCooper
ati
veBy
-l
awsandunder
t
heCode.

Sect
ion4.Requi
rement
sforRegi
str
ati
on.The
f
oll
owi
ngshal
lbecompl
i
edwi
thuponf
il
ingof
appl
i
cat
ion:

(
1)NameVer
if
icat
ionSl
i
p;

(
2)Ar
ti
clesofCooper
ati
onandBy
-l
aws;

(
3)Swor
nst
atementoft
het
reasur
erel
ect
edby
t
hesubscr
iber
sshowi
ngt
hatatl
eastt
went
y-f
ive
percent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos(
P15,
000.
00)
;

(
4)Sur
elyBondofAccount
abl
eOf
fi
cer
shandl
i
ng
f
undspr
oper
ti
esandsecur
it
ies;

(
5)Cer
ti
fi
cat
eofPr
e-Member
shi
pEducat
ion
Semi
nar(
PMES)
;

(
6)Economi
cSur
vey
;

(
7)Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;

(
8)LandOwner
shi
p(anyoft
hef
oll
owi
ng:
Cer
ti
fi
cat
eofTi
tl
eDecl
arat
ion.LeaseAgr
eement
,
DeedofDonat
ion,
DeedofSal
e,et
c.)

(
9)Wel
lDr
il
li
ngDat
a(i
ncaseofex
ist
ing
gr
oundwat
ersour
ce)i
ncl
udi
ngPhy
sical
&
Chemi
cal
Anal
ysi
sofwat
er;
and

(
10)Regi
str
ati
onf
ee.

Sect
ion5.Regi
str
ati
onJur
isdi
cti
on.Wat
erSer
vice
Cooper
ati
vesshal
lfi
l
ethei
rappl
i
cat
ionwi
tht
he
CDAEx
tensi
onOf
fi
ce,
whi
chshal
lhav
e
j
uri
sdi
cti
onov
ert
hesai
dcooper
ati
ves.

Sect
ion6.Capi
tal
i
zat
ion.Forpur
posesof
r
egi
str
ati
onwi
tht
heAut
hor
it
y,aWat
erSer
vice
Cooper
ati
veshal
lhav
eami
nimum pai
d-up
capi
tal
i
zat
ionofFi
ft
eenThousandPesos
(
P15,
000.
00)
.

Sect
ion7.Ser
viceAr
ea.Thecooper
ati
veshal
lonl
y
pr
ovi
deser
viceswi
thi
nthear
easpeci
fi
edi
nthe
CPC.I
ncaseofex
pansi
on,
thecooper
ati
veshal
l
appl
yforanex
tensi
onofser
vicear
eawi
tht
he
NWRB.

Sect
ion8.Wat
erPer
mit
.Ev
eryWat
erSer
vice
Cooper
ati
veshal
lsecur
eawat
erper
mitf
rom t
he
NWRBi
naccor
dancewi
tht
hepr
ovi
sionsoft
he
Wat
erCodeoft
hePhi
l
ippi
nes.

Sect
ion9.Requi
rement
sforFi
l
ingWat
erPer
mit
Appl
i
cat
ions.Al
lappl
i
cat
ionsshal
lbef
il
edi
nthe
pr
escr
ibedf
orm,
swor
ntobyt
heappl
i
cant
sand
suppor
tedbyt
hef
oll
owi
ngdocument
s:

1.Fordomest
icpur
pose

1.Dul
yaccompl
i
shedWat
erPer
mitAppl
i
cat
ion
andNot
ices;

2.LandOwner
shi
p(anyoft
hef
oll
owi
ng:
Cer
ti
fi
cat
eofTi
tl
e,TaxDecl
arat
ion,
Lease
Agr
eement
,DeedofDonat
ion,
DeedofSal
e,et
c;

3.Cer
ti
fi
cat
eofConf
ormancef
rom t
heLWUA;

4.Vi
cini
tymap/
Locat
ionPl
anwi
thscal
e:1:
10,
000
orscal
e1:
500showi
ngt
heex
actl
ocat
ionoft
he
poi
ntofdi
ver
sion;

5.Subdi
vi
sionPl
an(
ifappl
i
cabl
e);

6.Wel
ldr
il
li
ngDat
a(i
ncaseofex
ist
inggr
ound
wat
ersour
ce)
:and

7.Cl
ear
ancef
rom DOH,
ifr
euseofwast
ewat
erf
or
humanconsumpt
ion.

2.ForMuni
cipal
Use
1.Pr
oofofl
andowner
shi
pof
,legal
tit
let
o,orr
ight
t
ouse,
thepr
oper
tyonwhi
cht
hewat
ersour
cei
s
si
tuat
ed;

2.Cer
ti
fi
cat
eofRegi
str
ati
onwi
tht
heAut
hor
it
y;

3.Cer
ti
fi
cat
eofConf
ormancef
rom LWUA;

4.Vi
cini
tymap/
Locat
ionPl
anwi
thscal
e:1:
10,
000
orscal
e1:
500showi
ngt
heex
actl
ocat
ionoft
he
poi
ntofdi
ver
sion;

5.Submi
ssi
onPl
an(
ifappl
i
cabl
e);

6.Wel
lDr
il
li
ngDat
a(i
ncaseofex
ist
ing
gr
oundwat
ersour
ceaut
hent
icat
edbyt
hewel
l
dr
il
ler
)incl
udi
ngPhy
sical
andChemi
cal
,Anal
ysi
s
wat
er;

7.Env
ironment
alCompl
i
anceCer
ti
fi
cat
e(f
or
pr
oject
sconsi
der
edasEnv
ironment
all
yCr
it
ical
Pr
oject
sAr
eas)orCer
ti
fi
cat
eofNon-
Cov
erage
f
rom t
heDepar
tmentofEnv
ironmentandNat
ural
Resour
ces-Regi
onal
Off
ice;
and

8.Suchot
herdocument
sthatmayber
equi
redby
t
heNWRB.

Sect
ion10.Requi
rement
sfort
heI
ssuanceofCPC
andTar
if
fAppr
oval
.Thef
oll
owi
ngdocument
sar
e
r
equi
redt
obesubmi
tt
edf
oranAppl
i
cat
ionf
ora
CPCandAppr
oval
ofTar
if
f:

1.Cer
ti
fi
cat
eofRegi
str
ati
onf
rom t
heAut
hor
it
y;

2.Ar
ti
clesofCooper
ati
onandBy
-Laws;

3.Speci
alPowerofAt
tor
neyaut
hor
izi
ngt
he
si
gnat
oryt
osi
gnandf
il
etheappl
i
cat
ion;

4.Fav
orabl
eEndor
sementf
rom LWUA;
5.Appr
ovedwat
erper
mit
sand/
orMOAwi
thwat
er
ser
vicepr
ovi
der
,incaseofbul
kwat
ersuppl
y;

6.Of
fi
cial
recei
ptofannual
wat
erchar
ge(
s);

7.Cl
ear
ancet
hatappl
i
canthasnounpai
dfeesand
char
gesf
rom NWRB;

8.Pl
anofwat
erdi
str
ibut
ionsy
stem;

9.Pl
anel
evat
ionandcr
oss-
sect
ional
viewsof
t
ank/
reser
voi
r;

10.Pl
anel
evat
ionandcr
oss-
sect
ional
viewsof
pumphouse,
machi
ner
yandequi
pment
;

11.Cer
ti
fi
cat
eofPot
abi
l
ity
;

12.Lat
estAudi
tedFi
nanci
alSt
atement
sfort
he
l
astt
woy
ear
s,i
fappl
i
cabl
e;

13.Act
ual
Bal
ancesheetshowi
ngBal
anceSheet
i
temsf
orwat
eroper
ati
onsf
ort
hel
ast2y
ear
s,i
f
notav
ail
abl
e,submi
tthef
oll
owi
ng:

a.Account
srecei
vabl
e-Wat
erSuppl
y

b.Mat
eri
alsI
nvent
ory

c.Pr
oper
tyandEqui
pmenti
nSer
vice,
atcost

d.Accumul
atedDepr
eci
ati
on

e.Cust
omer
sDeposi
ts

14.I
temi
zedl
i
stofasset
sent
it
ledt
oret
urnasof
t
heendoft
hel
asthi
stor
ical
year
.Thi
sshoul
d
suppor
tthePr
oper
tyandEqui
pmenti
nSer
vice
r
efer
redt
oini
tem 10abov
e;
15.Act
ual
IncomeSt
atementshowi
ngI
ncome
St
atementi
temsf
orwat
eroper
ati
onsf
ort
hel
ast
2y
ear
s,i
fappl
i
cabl
e;

16.Busi
nesspl
anf
ort
henex
t5y
ear
s;

17.Pr
oject
edFi
nanci
alSt
atementf
orf
ivey
ear
s
wi
tht
hef
oll
owi
ng:

a.I
ncomeSt
atement

b.Bal
anceSheet

c.Assumpt
ions

18.I
temi
zedl
i
stofnewi
nvest
ment
sfort
henex
t5
y
ear
s;

19.Pr
oposedschedul
eofwat
err
ates;
and
20.Lev
elsofSer
viceagr
eedwi
thconsumer
s
commensur
atewi
thpr
oposedr
ates.

Sect
ion11.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
Wat
erSer
viceCooper
ati
ve,
suchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofr
ulesandpr
ocedur
esandt
he
conductofmeet
ingsoft
heGener
alAssembl
y,
Boar
dofDi
rect
orsandCommi
tt
ees;

c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
ors,
andCommi
tt
eeMember
s;

d.Al
l
ocat
ionandDi
str
ibut
ionofsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
nter
nal
aff
air
sof
Wat
erSer
viceCooper
ati
ves.
Al
lmat
ter
srel
ati
ngt
otheCer
ti
fi
cat
eofPubl
i
c
Conv
eni
encesuchascapi
tal
i
zat
ion

andi
nvest
mentr
equi
rement
s,equi
pmentand
f
aci
l
iti
es,
wat
ert
ari
ff
,andsuchot
hermat
ter
s
af
fect
ingt
hei
rwat
erser
viceoper
ati
onsshal
lbe
gov
ernedbyt
heNWRB.

Sect
ion12.ROLEOFLWUA.TheLWUAshal
lhav
e
t
hef
oll
owi
ngr
olesr
elat
ingt
oWat
erSer
vice
Cooper
ati
ve:

1.Topr
ovi
det
echni
cal
assi
stancesuchas
capaci
tybui
l
ding;

2.Toassi
sti
nthedet
ermi
nat
ionofwat
erpot
abi
l
ity
;
and

3.Suchot
herassi
stanceasmay
ber
equest
edby
t
hecooper
ati
ves.
Sect
ion13.Pr
efer
ent
ial
Right
s.Whenev
ert
woor
mor
epubl
i
cser
viceent
it
ieshav
ecompet
ing
i
nter
est
swi
thr
espectt
othegr
ant
ingandr
enewal
ofCPCandonei
sanWat
erSer
viceCooper
ati
ve
dul
yregi
ster
edwi
tht
heAut
hor
it
yunderR.
A.9520,
t
heNWRBshal
laccor
dpr
efer
encet
othel
att
er
ov
eranyt
ypeofpubl
i
cser
viceent
it
y.

Sect
ion14.Responsi
bil
i
tyofWat
erSer
vice
Cooper
ati
ve.Ev
eryWat
erSer
viceCooper
ati
ve
shal
loper
ate,
mai
ntai
n,andpr
ovi
desaf
eand
adequat
epot
abl
ewat
erser
vice.I
nal
lcaseswher
e
pr
act
icabl
e,t
heconcer
nedWat
erSer
vice
Cooper
ati
veshal
lgi
venot
icet
oit
smember
-
consumer
sinadv
anceofanycont
empl
ated
i
nter
rupt
ionofwat
ersuppl
yandt
hepr
obabl
e
dur
ati
ont
her
eofi
nthear
ea(
s)af
fect
ed.I
n
addi
ti
on,
theWat
erSer
viceCooper
ati
ve'
s
r
esponsi
bil
i
tiesshal
li
ncl
ude:

1.Ser
viceSt
andar
ds
a.Ser
viceCov
erage

b.Wat
erQual
i
ty

c.Rel
i
abi
l
ityofSuppl
y

2.Oper
ati
onal
Per
for
mance

a.Oper
ati
onal
Eff
ici
ency

b.Fi
nanci
alVi
abi
l
ity

3.Cust
omerSer
vice

a.Ser
viceRequestandCompl
aint
s

b.St
andar
dResponseTi
me

4.Oper
ati
ngPol
i
ciesandPr
ocedur
esonBi
l
li
ng
andCol
l
ect
ion
5.Pr
otect
ionofMember
-Consumer
s

I
nrel
ati
ont
othi
sSect
ion,
thecooper
ati
veshal
l
dev
elopi
tsownCust
omerSer
viceCode
consi
stentwi
thi
tsBy
-l
awsandi
ncompl
i
ancewi
th
t
heNWRBEconomi
cRegul
ator
yGui
del
i
nes.

Sect
ion15.Repor
ti
ngRequi
rement
s.Al
lWat
er
Ser
viceCooper
ati
vesshal
lsubmi
trepor
tst
othe
Aut
hor
it
yasr
equi
redunderRul
e8oft
heRul
es
andRegul
ati
onsI
mpl
ement
ingCer
tai
nPr
ovi
sions
oft
hePhi
l
ippi
neCooper
ati
veCodeof2008(
RA
9250)
.Ot
herr
epor
tsr
equi
redbyt
heNWRB,
the
DOHandot
hergov
ernmentagenci
esshal
l
l
i
kewi
sebesubmi
tt
edt
otheconcer
nedagency
.

Sect
ion16.Sanct
ionsandPenal
ti
es.Al
lWat
er
Ser
viceCooper
ati
veshal
lbesubj
ect
edt
o
cor
respondi
ngSanct
ionsandPenal
ti
esasmay
be
i
mposedbyt
heAut
hor
it
yandt
heNWRBf
or
v
iol
ati
onornon-
compl
i
ancewi
thadmi
nist
rat
ive
andst
atut
oryr
equi
rement
s.

Sect
ion17.Requi
rement
sforRenewal
ofCPC.The
CPCshal
lbev
ali
dforf
ive(
5)y
ear
sandr
enewabl
e
pr
iort
oit
sex
pir
ydat
e.Thef
oll
owi
ngr
equi
rement
s
t
obesubmi
tt
ed:

1.Boar
dResol
uti
onaut
hor
izi
ngt
hesi
gnat
oryt
o
si
gnandf
il
etheappl
i
cat
ion;

2.Cer
ti
fi
cat
eofGoodSt
andi
ngi
ssuedbyt
he
Aut
hor
it
y;

3.Appr
ovedWat
erPer
mit
s;

4.Of
fi
cial
recei
ptsofAnnual
Wat
erchange;

5.Of
fi
cial
recei
ptofSuper
visi
onandRegul
ati
on
Fee;

6.Cl
ear
ancet
hatappl
i
canthasnounpai
dfeesand
char
gesf
rom t
heNWRB;

7.Pl
anofWat
erDi
str
ibut
ionSy
stem;

8.Pl
anel
evat
ionandcr
oss-
sect
ional
viewsof
t
ank/
reser
voi
r;

9.Pl
anel
evat
ionandcr
oss-
sect
ional
viewsof
pumphouse,
machi
ner
yandequi
pment
;

10.Cer
ti
fi
cat
eofPot
abi
l
ity
;

11.Annual
Repor
tsf
ort
hel
astf
ivey
ear
s;

12.Lat
estAudi
tedFi
nanci
alSt
atementf
ort
hel
ast
f
ivey
ear
s;

13.Act
ual
Bal
anceSheetshowi
ngBal
anceSheet
i
temsf
orwat
eroper
ati
onsf
ort
hel
ast5y
ear
s,i
f
notav
ail
abl
e,submi
tthef
oll
owi
ng:
a.AccountRecei
vabl
e-Wat
erSuppl
y

b.Mat
eri
alsI
nvent
ory

c.Pr
oper
tyandEqui
pmenti
nSer
vice,
atcost

d.Accumul
atedDepr
eci
ati
on

e.Cust
omer
s'Deposi
ts

14.I
temi
zedl
i
stofasset
sent
it
ledt
oret
urnasof
t
heendoft
hel
asthi
stor
ical
year
.Thi
sshoul
d
suppor
tthePr
oper
tyandEqui
pmenti
nSer
vice
r
efer
redt
oini
tem 13(
c)abov
e;

15.Act
ual
IncomeSt
atementshowi
ngI
ncome
St
atementi
temsf
orwat
eroper
ati
onsf
ort
hel
ast
5y
ear
s;
16.Busi
nesspl
anf
ort
henex
t5y
ear
s;

17.Pr
oject
edFi
nanci
alSt
atementf
orf
ivey
ear
s
wi
tht
hef
oll
owi
ng:

a.I
ncomeSt
atement

b.Bal
anceSheet

c.Assumpt
ions

18.I
temi
zedl
i
stofnewi
nvest
ment
sfort
henex
t5
y
ear
s;

19.Pr
oposedSchedul
eofWat
erTar
if
f;and

20.Lev
elsofSer
viceagr
eedwi
thconsumer
s
commensur
atewi
thpr
oposedr
ates.

Sect
ion18.Secur
ingofWat
erPer
mitand/
orCPC.
Wat
erSer
viceCooper
ati
vei
ncl
udi
ngMul
ti
-
Pur
poseCooper
ati
vewi
thwat
erser
viceoper
ati
on
i
srequi
redt
osecur
ewat
erper
mitf
rom t
heNWRB.

ForWat
erSer
viceCooper
ati
veoper
ati
ngwi
thout
wat
erper
mitand/
orCPC,
theAut
hor
it
yshal
l
r
epor
tthemat
tert
otheNWRBf
orappr
opr
iat
e
act
ion.TheNWRBshal
lnot
if
ytheAut
hor
it
yof
what
everact
iont
akenont
hemat
ter
.Hencef
ort
h,
f
ail
ureoft
hecooper
ati
vet
olegal
i
zei
tsoper
ati
on
wi
thi
ntwo(
2)y
ear
sfr
om t
hedat
eofr
efer
ral
to
t
heNWRB,
thesameshal
lbeconsi
der
edav
ali
d
gr
oundf
ort
her
evocat
ionofi
tsCer
ti
fi
cat
eof
Regi
str
ati
on,
aft
erduepr
ocess.

Sect
ion19.Act
ionont
heAppl
i
cat
ionf
orCPC.
Uponsubmi
ssi
onoft
hecompl
eter
equi
rement
s
f
ort
hei
ssuanceofCPC,
theNWRBshal
lappr
ove
orr
ejectt
hesamewi
thi
nsi
x(6)mont
hsf
rom dat
e
ofr
ecei
ptt
her
eof
.

Sect
ion20.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
lbeset
tl
edasf
aras
pr
act
icabl
ethr
oughconci
l
iat
ion-
medi
ati
on
mechani
sm embodi
edi
nthecooper
ati
veby
-l
aws,
whi
chshal
lbei
naccor
dancewi
tht
heCDA
Gui
del
i
nesf
ort
heI
mpl
ement
ati
onofConci
l
iat
ion-
Medi
ati
onofCooper
ati
veDi
sput
es,
andappl
i
cabl
e
l
aws.

Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionori
ncour
tofcompet
entj
uri
sdi
cti
on.

Howev
er,
incaseswher
ethei
ssue/
sfal
lwi
thi
nthe
j
uri
sdi
cti
onoft
heNWRB,
thesameshal
lbe
r
efer
redt
othesai
dagencyandi
tshal
lber
esol
ved
i
naccor
dancewi
tht
heNWRBr
egul
ati
on.

RULEV-TRANSPORTATI
ONSREVI
CE
COOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.113(
par
.2)
underChapt
erXI
VofRepubl
i
cAct
.No.9520,
ot
her
wiseknownast
hePhi
l
ippi
neCooper
ati
ve
Codeof2008,
theAut
hor
it
yinconsul
tat
ionwi
th
t
heDOTC,
LTO,
LTFRB,
MARI
NA,
OTCandt
he
concer
nedcooper
ati
vesect
or,
her
eby
pr
omul
gat
est
hef
oll
owi
ngr
ulesandr
egul
ati
ons
f
ort
hepr
opergui
danceandcompl
i
anceof
Tr
anspor
tat
ionSer
viceCooper
ati
ves.

Sect
ion1.Cov
erage.Thi
sRul
eshal
lcov
eral
l
Tr
anspor
tat
ionSer
viceCooper
ati
vesdul
y
r
egi
ster
edwi
tht
heAut
hor
it
yunderRA9520whi
ch
ar
eor
gani
zedt
orenderpubl
i
cser
vicessuchas
l
andandsea/
wat
ert
ranspor
tat
ionser
vices,
l
i
mit
edt
osmal
lvessel
s,f
ort
hesaf
econv
eyance
ofpassenger
sand/
orcar
go.Tr
anspor
tat
ion
Ser
viceCooper
ati
veor
gani
zedundert
he
pr
ovi
sionsofEx
ecut
iveOr
derNo.898,
Ser
iesof
1983,
shal
lbegov
ernedbyChapt
erXI
VofRA
9520,
andbyt
hisRul
e.

Sect
ion2.Al
l
iedBusi
nessesbyTr
anspor
tat
ion
Ser
viceCooper
ati
ve.Subj
ectt
oper
ti
nentnat
ional
l
awsandl
ocal
ordi
nances,
pri
mar
yTr
anspor
tat
ion
Ser
viceCooper
ati
vesi
ncl
udi
ngsecondar
yand
t
ert
iar
yfeder
ati
onofcooper
ati
ves,
mayengagei
n
abusi
nessr
elat
edt
otr
anspor
tat
ionser
vice,
i
ncl
udi
ngbutnotl
i
mit
edt
o:

(
1)I
mpor
tat
ion,
dist
ri
but
ionandmar
ket
ingof
pet
rol
eum pr
oduct
sinaccor
dancewi
thex
ist
ing
l
aws;

(
2)Oper
ati
onofgasol
i
nest
ati
onsand
t
ranspor
tat
ionser
vicecent
ers;

(
3)I
mpor
tat
ion,
dist
ri
but
ionandmar
ket
ingof
spar
epar
tsandsuppl
i
es;
and

(
4)Mar
ket
ingofv
ehi
cle/
dri
ver
sinsur
ancepol
i
cies.

Sect
ion3.Mul
ti
-pur
poseCooper
ati
vesi
ntendi
ngt
o
engagei
nTr
anspor
tat
ionSer
vice.Mul
ti
-pur
pose
cooper
ati
vesi
ntendi
ngt
oengagei
nregul
ar
passengerand/
orcar
goser
vicesasanaddi
ti
onal
act
ivi
tyshal
lcompl
ywi
tht
hef
oregoi
ng
r
equi
rement
s:

1.AmendedAr
ti
cleofCooper
ati
onandBy
-Laws;

2.CETOS;

3.Fr
anchi
seandv
ehi
cleuni
tsr
equi
rement
,as
pr
ovi
dedi
nthi
sRul
eandot
herr
equi
rement
sas
maybepr
escr
ibedbyappr
opr
iat
eregul
ator
y
agenci
es;
and

4.AmendmentFee.

Sect
ion4.Regi
str
ati
onJur
isdi
cti
on.
Tr
anspor
tat
ionSer
viceCooper
ati
veshal
lfi
l
eit
s
dul
yaccompl
i
shedr
egi
str
ati
ondocument
swi
th
t
heCDA-
Ext
ensi
onOf
fi
cewher
eit
spr
inci
pal
off
ice
i
slocat
ed,
whi
chshal
lhav
ejur
isdi
cti
onov
ert
he
sai
dcooper
ati
ve.

Sect
ion5.Capi
tal
i
zat
ion.Forpur
posesof
r
egi
str
ati
onwi
thCDA,
Transpor
tat
ionSer
vice
Cooper
ati
vesshal
lhav
eami
nimum pai
dup
capi
tal
i
zat
ionofFi
ft
eenThousandPesos
(
P15,
000.
00)
.

Howev
er,
tooper
ateassuch,
themi
nimum
capi
tal
i
zat
ionandnumberofcooper
ati
vel
yowned
uni
tsshal
lbei
naccor
dancewi
tht
her
ulesand
r
egul
ati
onspr
escr
ibedbyt
heconcer
ned
gov
ernmentagencyasshownbel
ow:
TYPEOF
TRANSPORTATI
ONSERVI
CE
COOPERATI
VE MI
NIMUM
CAPI
TALI
ZATI
ON MI
NIMUM NO.
OFUNI
TS
A.LAND

Tr
icy
cle P15,
000.
005
Jeepney P30,
000.
005
Tax
i P30,
000.
005
AUV/
FX/
VanP30,
000.
005
Mi
niBus/
BusP50,
000.
00 2
Tr
ucksf
orHi
re P50,
000.
002
B.WATER

Shi
p P10,
000,
000.
00 1
Fer
ryBoat P5,
000,
000.
001
Mot
ori
zedBanca P100,
000.
00 1

Sect
ion6.Regi
str
ati
onRequi
rement
s.The
f
oll
owi
ngshal
lbecompl
i
edwi
thuponf
il
ingof
appl
i
cat
ion:

(
1)NameVer
if
icat
ionSl
i
p;

(
2)Ar
ti
clesofCooper
ati
onandBy
-l
aws;

(
3)Swor
nSt
atementoft
het
reasur
erel
ect
edby
t
hesubscr
iber
sshowi
ngt
hatatl
eastt
went
y-f
ive
percent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
hasbeensubscr
ibedandl
eastt
went
y-f
iveper
cent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeen
pai
d:Pr
ovi
ded,
Thati
nnocaseshal
lthepai
d-up
shar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos
(
P15,
000.
00)
;

(
4)Pr
e-Member
shi
pEducat
ionsemi
nar(
PMES)
;

(
5)Cooper
ati
veEducat
ionandTr
anspor
t
Oper
ati
onSemi
nar(
CETOS)
;

(
6)Sur
etyBondOfAccount
abl
eOf
fi
cer
shandl
i
ng
f
unds,
proper
ti
esandsur
eti
es;

(
7)Economi
cSur
vey
;

(
8)Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;

(
9)Under
taki
ngt
ocompl
ywi
tht
heaudi
ti
ngand
account
ingst
andar
dspr
escr
ibedbyt
heAut
hor
it
y;
(
10)Ot
herr
equi
rement
sasmayber
equi
redbyl
aw;
and

(
11)Regi
str
ati
onFee.

Sect
ion7.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
Tr
anspor
tat
ionSer
viceCooper
ati
ve,
suchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofr
ulesandpr
ocedur
esandt
he
conductofmeet
ingsoft
heGener
alAssembl
y,
Boar
dofDi
rect
orsandCommi
tt
ees;

c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
ors,
andCommi
tt
eeMember
s;

d.Al
l
ocat
ionanddi
str
ibut
ionofsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
rint
ernal
aff
air
sof
Tr
anspor
tat
ionSer
viceCooper
ati
ves.

Al
lmat
ter
srel
ati
ngt
otheFr
anchi
seorCer
ti
fi
cat
e
ofPubl
i
cConv
eni
enceandNecessi
tyof
Tr
anspor
tat
ionSer
viceCooper
ati
vessuchas
capi
tal
i
zat
ionandi
nvest
mentr
equi
rement
s,
equi
pmentandf
aci
l
iti
es,
frequenci
es,
rat
e-f
ixi
ng,
r
egi
str
ati
on,
droppi
ngandsubst
it
uti
onofuni
ts,
andsuchot
hermat
ter
saf
fect
ingt
hei
r
t
ranspor
tat
ionser
viceoper
ati
onsshal
lbe
gov
ernedbyt
hef
oll
owi
nggov
ernmentagency
:

(
a)Forl
andt
ranspor
tat
ion-LTFRB/
LTO/
OTC

(
b)Forwat
ert
ranspor
tat
ion-MARI
NA/
PCG

(
c)Fort
ri
cycl
e-LGU/
LTO/
OTC

I
ncaset
her
ear
etwo(
2)ormor
eappl
i
cant
sfort
he
samepubl
i
cser
viceFr
anchi
seorCer
ti
fi
cat
eof
Publ
i
cConv
eni
enceandNecessi
ty,
all
thi
ngs
bei
ngequal
,pr
efer
enceshal
lbegi
vent
oa
Tr
anspor
tat
ionSer
viceCooper
ati
vebyt
he
concer
nedgov
ernmentagency
.

Sect
ion8.Moni
tor
ingCommi
tt
ee.TheAut
hor
it
y
shal
lest
abl
i
shacommi
tt
eef
ort
hemoni
tor
ingof
Tr
anspor
tat
ionSer
viceCooper
ati
vecomposedof
r
epr
esent
ati
vef
rom t
heAut
hor
it
y,whoshal
lbeEx
-
Of
fi
cioChai
rper
sont
her
eof
,theLTO,
LTFRB,
OTC,
LGU,
andot
herconcer
nedgov
ernmentagenci
es
asmaybenecessar
y,andt
heNat
ional
Feder
ati
on
ofTr
anspor
tat
ionCooper
ati
ves.Sai
dCommi
tt
ee
shal
lbeor
gani
zedwi
thi
nthi
rt
y(30)day
sfr
om t
he
ef
fect
ivi
tyoft
hisRul
eandest
abl
i
shi
tsown
i
nter
nal
rul
esast
oit
soper
ati
on,
conductof
meet
ing,
andot
hermat
ter
snecessar
ytoex
erci
se
suchf
unct
ions.

TheAut
hor
it
yshal
ll
ikewi
secr
eat
eaLocal
Moni
tor
ingCommi
tt
eei
nit
sex
tensi
onof
fi
cest
o
f
aci
l
itat
ethemoni
tor
ingoft
heseTr
anspor
tat
ion
Ser
viceCooper
ati
ves.Sai
dCommi
tt
eeshal
l
l
i
kewi
sebeor
gani
zedwi
thi
nni
net
y(90)day
sfr
om
t
her
ecei
ptoft
her
ulesandf
unct
ionsf
ormul
ated
byt
heNat
ional
Commi
tt
eeconv
eneev
eryquar
ter
t
odi
schar
gei
tsf
unct
ionsandappoi
ntaSecr
etar
y
f
rom amongi
tsmember
s.

Theper
manentSecr
etar
iatshal
lcomef
rom t
he
Aut
hor
it
y.

TheCommi
tt
eeshal
lhav
ethef
oll
owi
ngf
unct
ions:

(
1)Toov
erseet
hei
mpl
ement
ati
onoft
hisRul
e;

(
2)Tor
ecommendchangesont
hisRul
efr
om t
ime
t
oti
mei
faneedar
ises;

(
3)Toassi
stasf
araspr
act
icabl
ethecooper
ati
ve
i
nset
tl
ingi
nterandi
ntr
acooper
ati
vedi
sput
es;

(
4)Tosubmi
tquar
ter
lyaccompl
i
shmentr
epor
t
i
ncl
udi
ngr
ecommendat
ion/
resol
uti
ont
obe
adopt
edi
ntheset
tl
ementoft
heaf
oresai
d
di
sput
est
otheCDABoar
dofAdmi
nist
rat
ors
t
hrought
heEx
ecut
iveDi
rect
orandt
otheOTC
Boar
dofDi
rect
orst
hroughi
tsEx
ecut
iveDi
rect
or
copyf
urni
shedal
lagenci
esi
nvol
ved.

Sect
ion9.Cont
inui
ngEducat
ionandTr
aini
ng.The
concer
nedgov
ernmentagenci
esshal
lcoor
dinat
e
t
osuppor
tregi
ster
edcooper
ati
vesbyex
tendi
ng
semi
nar
sfort
hepur
poseofcont
inui
ngeducat
ion
oncooper
ati
veandot
herr
elat
edt
rai
ningsi
nor
der
t
oenhancet
heknowl
edgeandcapabi
l
ityoft
he
of
fi
cer
saswel
lasmember
soft
hecooper
ati
ve.
Theconcer
nedagenci
esi
nvol
vedi
nthe
Tr
anspor
tat
ionSer
viceCooper
ati
veshal
lfor
ma
t
rai
ner
'st
eam whi
chshal
lfor
mul
atededucat
ional
pr
ogr
am/
modul
etobeusedi
nthet
rai
ning
semi
nar
.

Sect
ion10.Renewal
ofFr
anchi
seandVehi
cle
Regi
str
ati
on.Renewal
soff
ranchi
seandv
ehi
cle
r
egi
str
ati
onshal
lbegr
ant
edt
oTr
anspor
tat
ion
Ser
viceCooper
ati
vespr
ovi
dedsuchcooper
ati
ve
pr
esent
saCer
ti
fi
cat
eofGoodSt
andi
ngf
rom t
he
Aut
hor
it
yandt
heOTC.I
nthecaseofTr
icy
cle
Tr
anspor
tat
ionSer
viceCooper
ati
ve,
aCer
ti
fi
cat
e
ofOper
ati
onf
rom t
heLocal
Gov
ernmentUni
t
concer
nedshal
lber
equi
redaspr
ooft
hati
thas
cont
inuousl
ypr
ovi
dedt
her
equi
redpubl
i
c
t
ranspor
tat
ionser
vices.

Sect
ion11.Set
tl
ementofDi
sput
es.I
ntr
a/I
nter
cooper
ati
vedi
sput
eshal
lbeset
tl
edasf
aras
pr
act
icabl
ethr
oughconci
l
iat
ion-
medi
ati
on
mechani
sm embodi
edi
nthecooper
ati
veby
-l
aws,
whi
chshal
lbei
naccor
dancewi
tht
heCDA
Gui
del
i
nesf
ort
heI
mpl
ement
ati
onofConci
l
iat
ion-
Medi
ati
onofCooper
ati
veDi
sput
es,
andappl
i
cabl
e
l
aws.

Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionori
ncour
tofcompet
entj
uri
sdi
cti
on.

Howev
er,
incaseswher
ethei
ssue/
sfal
lwi
thi
nthe
j
uri
sdi
cti
onoft
heDOTC,
LTFRB,
LTO,
MARI
NA,
andOTCt
hesameshal
lber
efer
redt
othesai
d
agenci
esandshal
lber
esol
vedi
naccor
dancewi
th
t
hei
rregul
ati
ons.

RULEVI-ELECTRI
CCOOPERATI
VES

Pur
suantt
othepr
ovi
sionsofAr
t.134(
par
.2)
underChapt
erXVI
IofRepubl
i
cActNo.9520,
ot
her
wiseknownast
hePhi
l
ippi
neCooper
ati
ve
Codeof2008,
theAut
hor
it
yinconsul
tat
ionwi
th
t
heconcer
nedcooper
ati
vesect
orher
eby
pr
omul
gat
est
hef
oll
owi
ngr
ulesandr
egul
ati
ons
f
ort
hepr
opergui
danceandcompl
i
anceof
El
ect
ri
cCooper
ati
ves.

Sect
ion1.Pur
posesandObj
ect
ives.El
ect
ri
c
Cooper
ati
vesshal
lbeor
gani
zedt
ounder
take
powergener
ati
onut
il
iz
ingnewandr
enewabl
e
ener
gysour
ces,
incl
udi
nghy
bri
dsy
stems,
acqui
sit
ion,
andoper
ati
onofsub-
tr
ansmi
ssi
on
and/
ordi
str
ibut
ionandsuppl
yofel
ect
ri
cit
yasi
ts
pr
imar
ypur
poses.Howev
er,
itshal
lnotbe
pr
ecl
udedt
ovent
urei
ntoanyot
herpur
poset
hat
ot
herl
aws,
rul
es,
regul
ati
ons,
andt
hei
rownBy
-
l
awsmayal
l
owasl
ongasi
tisr
elat
edt
othe
pr
imar
ypur
poseandobj
ect
iveoft
hecooper
ati
ve.
I
tshal
lal
socont
inuet
ounder
taket
he
i
mpl
ement
ati
onoft
heRur
alEl
ect
ri
fi
cat
ion
Pr
ogr
am i
nthei
rrespect
ivear
easofcov
eragei
n
consonancewi
tht
het
ermsandcondi
ti
ons
appur
tenantt
othei
rCer
ti
fi
cat
esofFr
anchi
se;
pr
ovi
dedt
her
ightoft
heEl
ect
ri
cCooper
ati
vest
o
ex
erci
set
hepowerofemi
nentdomai
nin
f
urt
her
anceoft
her
ural
elect
ri
fi
cat
ionpr
ogr
am,
shal
lnotbedi
mini
shed,
inst
eadi
tshal
lbei
nful
l
f
orceandef
fect
,subj
ectt
other
equi
rement
sof
t
heConst
it
uti
onandex
ist
ingr
elev
antl
aws.

Sect
ion2.Cov
erage.Thi
sRul
eshal
lappl
ytoal
l
El
ect
ri
cCooper
ati
vesr
egi
ster
edwi
tht
heAut
hor
it
y
underR.
A.9520t
hatmayunder
takepower
gener
ati
onut
il
iz
ingr
enewabl
eener
gysour
ces,
i
ncl
udi
nghy
bri
dsy
stems,
acqui
sit
ionand
oper
ati
onofsubt
ransmi
ssi
onordi
str
ibut
ionas
i
tspr
imar
ypur
poses.Thi
sRul
eshal
lal
socov
er
newdi
str
ibut
ionut
il
it
iest
hatwi
l
lregi
sterwi
tht
he
Aut
hor
it
y.
Sect
ion3.Cooper
ati
vePr
inci
plesandPr
act
ices.
El
ect
ri
cCooper
ati
vesr
egi
ster
edwi
tht
heAut
hor
it
y
shal
lconductt
hei
raf
fai
rsi
naccor
dancewi
th
Fi
l
ipi
nocul
tur
e,goodv
aluesandex
per
ienceand
t
heuni
ver
sal
l
y-accept
edpr
inci
plesofcooper
ati
on
whi
chi
ncl
ude,
butar
enotl
i
mit
edt
o,t
hef
oll
owi
ng:

1.Vol
unt
aryandOpenMember
shi
p-El
ect
ri
c
Cooper
ati
vesar
evol
unt
aryor
gani
zat
ions,
opent
o
al
lper
sonsabl
etouset
hei
rser
vicesandwi
l
li
ngt
o
acceptt
her
esponsi
bil
i
tiesofmember
shi
p,
wi
thoutgender
,soci
al,
raci
al,
pol
i
tical
orr
eli
gious
di
scr
imi
nat
ion;

2.Democr
ati
cMemberCont
rol
-El
ect
ri
c
Cooper
ati
vesar
edemocr
ati
cor
gani
zat
ionst
hat
ar
econt
rol
l
edbyt
hei
rmember
swhoact
ivel
y
par
ti
cipat
einset
ti
ngt
hei
rpol
i
ciesandmaki
ng
deci
sions.Menandwomenser
vingasel
ect
ed
r
epr
esent
ati
ves,
dir
ect
ors,
orof
fi
cer
sar
e
account
abl
etot
hemember
shi
p.I
npr
imar
y
cooper
ati
ves,
member
shav
eequal
vot
ingr
ight
s
ofone-
member
,one-
vot
e.Cooper
ati
vesatot
her
l
evel
sar
eor
gani
zedi
nthesamedemocr
ati
c
manner
;

3.MemberEconomi
cPar
ti
cipat
ion-Member
sof
t
heEl
ect
ri
cCooper
ati
vescont
ri
but
eequi
tabl
yto,
anddemocr
ati
cal
l
ycont
rol
,thecapi
tal
oft
hei
r
cooper
ati
ve.Atl
eastpar
toft
hatcapi
tal
ist
he
commonpr
oper
tyoft
hecooper
ati
ve.Theyshal
l
r
ecei
vel
i
mit
edcompensat
ionorl
i
mit
edi
nter
est
,if
any
,oncapi
tal
subscr
ibedandpai
dasacondi
ti
on
ofmember
shi
p.Member
sal
l
ocat
esur
plusesf
or
anyoral
loft
hef
oll
owi
ngpur
poses:
dev
elopi
ng
t
hecooper
ati
vebyset
ti
ng-
upr
eser
ves,
par
tof
whi
chshoul
datl
eastbei
ndi
vi
sibl
e;benef
it
ing
member
sinpr
opor
ti
ont
othei
rpat
ronageoft
he
cooper
ati
ve'
sbusi
ness;
andsuppor
ti
ngot
her
act
ivi
ti
esappr
ovedbyt
hemember
shi
p;

4.Aut
onomyandI
ndependence-El
ect
ri
c
Cooper
ati
vesar
eaut
onomous,
sel
f-
hel
p
or
gani
zat
ionscont
rol
l
edbyt
hei
rmember
s.I
fthey
ent
eri
ntoagr
eement
swi
thot
heror
gani
zat
ions,
i
ncl
udi
nggov
ernment
,orr
aisecapi
tal
from
ex
ter
nal
sour
ces,
theyshal
ldosoont
ermst
hat
ensur
edemocr
ati
ccont
rol
oft
hei
rmember
sand
mai
ntai
nthei
rcooper
ati
veaut
onomy
;

5.Educat
ion,
Trai
ningandI
nfor
mat
ion-El
ect
ri
c
Cooper
ati
vesshal
lpr
ovi
deeducat
ion,
trai
ningand
i
nfor
mat
ionf
ort
hei
rmember
s,el
ect
edand
appoi
ntedr
epr
esent
ati
ves,
manager
s,and
empl
oyeessot
hatt
heycancont
ri
but
eef
fect
ivel
y
andef
fi
cient
lyt
othedev
elopmentoft
hei
r
cooper
ati
ves;

6.Cooper
ati
onAmongCooper
ati
ves-El
ect
ri
c
Cooper
ati
vesser
vet
hei
rmember
smost
ef
fect
ivel
yandst
rengt
hent
hecooper
ati
ve
mov
ementbywor
kingt
oget
hert
hroughl
ocal
,
nat
ional
,regi
onal
andi
nter
nat
ional
str
uct
ures;
and

7.Concer
nforCommuni
ty-El
ect
ri
cCooper
ati
ves
wor
kfort
hesust
ainabl
edev
elopmentoft
hei
r
communi
ti
est
hroughpol
i
ciesappr
ovedbyt
hei
r
member
s.
Sect
ion4.Member
shi
pint
heEl
ect
ri
c
Cooper
ati
ves.Member
shi
pinEl
ect
ri
c
Cooper
ati
vesr
egi
ster
edwi
tht
heAut
hor
it
yshal
l
hav
ethef
oll
owi
ngt
ypes:

a.Regul
arMember-r
efer
stoanat
ural
per
son
(
member
-consumer
)wi
thel
ect
ri
cal
ser
vice
connect
ionwhohast
her
ightt
ovot
eandbev
oted
uponandent
it
ledt
oal
lther
ight
sandpr
ivi
l
egesof
member
shi
pundert
heCode.

b.Associ
ateMember-r
efer
stoamember
-
i
nst
it
uti
onorent
it
yav
ail
i
ngoft
heser
vicesof
el
ect
ri
ccooper
ati
ve,
suchas,
butnotl
i
mit
edt
o:
cor
por
ati
on,
indust
ri
alandcommer
cial
est
abl
i
shment
,joi
ntv
ent
ure,
othercooper
ati
ve,
pl
aceofwor
shi
p,l
ocal
gov
ernmentbui
l
dingor
f
aci
l
ity
,et
c,asr
epr
esent
edbyi
tsheadofsuch
est
abl
i
shmentorent
it
y,buti
snotent
it
ledt
ovot
e
andbev
otedupon.Howev
er,
shal
lbeent
it
ledt
o
t
hepr
efer
ent
ial
right
sandpr
ivi
l
egesasi
ndi
cat
ed
i
ntheby
-l
awsandundert
heCode.
Sect
ion5.Regi
str
ati
onRequi
rement
s.The
f
oll
owi
ngar
ether
equi
rement
sfort
her
egi
str
ati
on
ofel
ect
ri
ccooper
ati
veswhi
chshal
lbesubmi
tt
ed
i
nfour(
4)copi
est
otheAut
hor
it
y:

A.Regi
str
ati
onDocument
s:

a.
1Forex
ist
ingel
ect
ri
ccooper
ati
venotr
egi
ster
ed
wi
tht
heAut
hor
it
y:

1.cer
ti
fi
cat
etr
uecopyoft
heboar
dresol
uti
on
cer
ti
fyi
ngt
her
esul
toft
hev
oteappr
ovedt
hrough
ar
efer
endum appr
ovi
ngt
her
egi
str
ati
onoft
he
cooper
ati
vewi
tht
heAut
hor
it
yincompl
i
ancewi
th
Ar
ti
cle128;

2.Cer
ti
fi
edcopyofAr
ti
clesofCooper
ati
onandBy
-
Laws;

3.Dul
yaudi
tedf
inanci
alst
atementf
ort
hepast
t
wo(
2)i
mmedi
atel
ypr
ecedi
ngy
ear
s;

4.Li
stofnamesofi
ncumbentBoar
dofDi
rect
ors
andt
hei
raddr
essescer
ti
fi
edbyt
heBoar
d
Secr
etar
yandat
test
edt
obyt
heChai
rper
son;

5.Swor
nSt
atementoft
heTr
easur
eroft
he
aut
hor
izedshar
ecapi
tal
,thesubscr
ibedshar
e
capi
tal
oft
hemember
s,andt
heamountofpai
d-
upshar
ecapi
tal
ofmember
sandt
heamountof
pai
d-upshar
ecapi
tal
recei
vedbyt
heTr
easur
er,
to
besubmi
tt
edwi
thi
nsi
x(6)mont
hsf
rom t
he
r
egi
str
ati
on;
and

6.Sur
etyBondofAccount
abl
eOf
fi
cer
shandl
i
ng
f
unds,
proper
ti
esandsur
eti
es;

a.
2Fornewel
ect
ri
ccooper
ati
ves:

1.NameVer
if
icat
ionSl
i
p;
2.Cer
ti
fi
edt
ruecopyoft
heGr
antFr
anchi
se;

3.Ar
ti
clesofCooper
ati
onandBy
-l
aws;

4.Swor
nSt
atementoft
het
reasur
ersel
ect
edby
t
hesubscr
iber
sshowi
ngt
hatatl
eastt
went
y-f
ive
percent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
hasbeensubscr
ibedandatl
eastt
went
y-f
iveper
cent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeen
pai
d:Pr
ovi
ded,
Thati
nnocaseshal
lthepai
d-up
shar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos
(
P15,
000.
00)
;

5.Sur
elyBondAccount
abl
eOf
fi
cer
shandl
i
ng
f
unds,
proper
ti
esandsur
eti
es;

6.Cer
ti
fi
cat
eofPr
e-Member
shi
pEducat
ion
semi
nar(
PMES)
;

7.Economi
cSur
vey
;
8.Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
vehasacqui
redpr
iorr
ightt
othe
useoft
hepr
oposedname;

9.Det
ail
edf
easi
bil
i
tyst
udyi
ndi
cat
ingv
iabi
l
ityof
t
hepr
oposedbusi
nessact
ivi
ty;
and

10.Under
taki
ngt
ocompl
ywi
tht
heaudi
ti
ngand
account
ingst
andar
dspr
escr
ibedbyt
heAut
hor
it
y.

a.
3.El
ect
ri
cCooper
ati
veDeemedRegi
ster
edunder
Ar
t.144oft
heCode:

1.Cer
ti
fi
cat
eofRegi
str
ati
onand/
orCer
ti
fi
cat
eof
Conf
ir
mat
ion;

2.Ar
ti
clesofCooper
ati
onandBy
-l
aws;
and

3.Lat
estaudi
tedf
inanci
alst
atement
.

Thesai
ddocument
sshal
lbesubmi
tt
edt
othe
near
estof
fi
ceoft
heAut
hor
it
yoft
otheCDA
Cent
ral
Off
ice,
att
heopt
ionoft
heCooper
ati
ve.
Uponsubmi
ssi
onoft
heabov
ement
ioned
document
s,t
heAut
hor
it
yshal
li
ssuet
henew
cer
ti
fi
cat
eofr
egi
str
ati
ont
otheCooper
ati
ve.

B.Regi
str
ati
onf
eeaspr
escr
ibedbyt
heAut
hor
it
y.

Sect
ion6.Jur
isdi
cti
onUponRegi
str
ati
on.El
ect
ri
c
Cooper
ati
vei
ntendi
ngt
oregi
sterwi
tht
he
Aut
hor
it
yshal
lfi
l
ethei
rappl
i
cat
ionwi
tht
heCDA
Ex
tensi
onOf
fi
ce,
whi
chshal
lhav
ejur
isdi
cti
on
ov
ert
hesai
dcooper
ati
vesuponappr
oval
oft
hei
r
r
egi
str
ati
on.Howev
er,
ifanel
ect
ri
ccooper
ati
ve
opt
edt
oregi
sterwi
tht
heCDACent
ral
Off
iceas
pr
ovi
dedf
ori
nthepr
ecedi
ngSect
ion,
andsuch
r
egi
str
ati
onhasbeenpr
ocessedandappr
ovedby
t
heCDACent
ral
Off
ice,
suchr
egi
str
ati
onshal
lbe
f
orwar
dedt
otheCDAEx
tensi
onOf
fi
cewher
ethe
cooper
ati
vei
slocat
edandt
hesameEx
tensi
on
Of
fi
ceshal
lassumej
uri
sdi
cti
onov
ert
hesai
d
cooper
ati
ve.
Sect
ion7.Regi
str
ati
onOpt
ions.El
ect
ri
c
Cooper
ati
vesr
egi
ster
edwi
tht
heNat
ional
El
ect
ri
fi
cat
ionAdmi
nist
rat
ion(
NEA)under
Pr
esi
dent
ial
Decr
eeNo.269,
asamended,
whi
ch
optnott
oregi
sterwi
tht
heAut
hor
it
y,ar
eal
l
owed
t
oret
aint
hewor
ld"
cooper
ati
ve"i
nthei
rregi
ster
ed
names,
butt
heyshal
lnotbeent
it
ledt
othe
benef
it
sandpr
ivi
l
egespr
ovi
dedunderR.
A.9520.

Sect
ion8.Regi
str
ati
onofEl
ect
ri
cCooper
ati
ves.
Ther
egi
str
ati
ononanEl
ect
ri
cCooper
ati
vewi
th
t
heAut
hor
it
yunderAr
ti
cle127oft
heCodeshal
l
besubmi
tt
edf
orappr
oval
tot
hemember
s
t
hroughar
efer
endum,
asav
oti
ngpr
ocedur
e,
speci
all
ycal
l
edf
orsuchpur
pose.

Ther
equi
rednumberofv
otesf
orr
egi
str
ati
onwi
th
t
heAut
hor
it
yshal
lbet
went
yper
cent(
20%)ofal
l
member
singoodst
andi
ngwi
thi
nthear
eaof
cov
erage.Nopr
oxyv
oti
ngshal
lbeal
l
owed.

Unl
essot
her
wisepr
ovi
dedi
ntheBy
-l
awsoft
he
cooper
ati
ve,
thet
erm memberi
ngoodst
andi
ng
shal
lbeasdef
inedi
ntheCodeofi
nthi
sRul
e.

Sect
ion9.Pr
ocedur
eint
heConductof
Ref
erendum f
orr
egi
str
ati
onwi
tht
heAut
hor
it
y.I
n
compl
i
ancewi
thAr
t.128ofRA9520her
eunder
ar
ethepr
ocedur
esi
nconduct
ingt
hesame:

A.BODI
nit
iat
edRef
erendum.TheBoar
dof
Di
rect
orsshal
lunder
taket
hef
oll
owi
ng:

1.I
ssueNot
icer
efer
endum i
ndi
cat
ingt
he
f
oll
owi
ng:

a.Dat
eofRef
erendum;

b.ModeofConductoft
heRef
erendum whi
chmay
ei
therbe:

b.
1sur
veyFor
m;and

b.
2Assembl
yMeet
ingi
nther
espect
ivedi
str
ict
s
whi
chmay
besi
mul
taneoussequent
ial
.

2.Post
ing/
Publ
i
cat
ionofNot
iceofr
efer
endum
shal
lbedonenotl
atert
han30day
spr
iort
othe
schedul
edconductofr
efer
endum.

3.I
dent
if
icat
ionofmember
singoodst
andi
ng
basedont
hequal
i
ficat
ionanddi
squal
i
ficat
ion
pr
ovi
sionsi
ntheBy
-l
aws.

4.Pr
ovi
sionofRef
erendum Quest
ionnai
reFor
mto
qual
i
fiedmember
stov
otewhet
hert
oregi
steror
nott
oregi
sterwi
tht
heAut
hor
it
y.

5.Col
l
ect
ionofQuest
ionnai
ref
ormsand
canv
assi
ngofVot
esbyt
hecooper
ati
ve'
sEl
ect
ion
Commi
tt
ee.

6.Repor
ti
ngoft
her
esul
tsoft
hecanv
assi
ng,
i.
e.
f
avorornotf
avor
.
7.Cer
ti
fi
cat
ionbyt
heEl
ect
ionCommi
tt
eeast
othe
r
esul
toft
her
efer
endum dul
ynot
edbyt
he
maj
ori
tyoft
heBoar
dofDi
rect
ors.

B.Member
-ConsumerI
nit
iat
edr
efer
endum.I
n
caset
heBoar
dofDi
rect
orsshal
lref
uset
o
conductar
efer
endum,
theMember
-Consumer
s
mayi
nit
iat
ear
efer
endum t
hroughapet
it
iondul
y
si
gnedbyatl
eastt
hreehundr
ed(
300)member
s
ofeachdi
str
ictoft
hecooper
ati
onwhoar
e
ent
it
ledt
ovot
ebyf
il
li
ngt
hesamet
otheBoar
dof
Di
rect
ors.TheBoar
dofDi
rect
orsshal
lactwi
thi
n
t
hir
ty(
30)day
sfr
om r
ecei
ptt
her
eofwhet
hert
o
gr
antordenysai
dpet
it
ion.Fai
l
ureoft
heBoar
dof
Di
rect
orst
oactwi
thi
nthegi
venper
iodort
he
deni
aloft
hepet
it
ion,
thepet
it
ioner
smayconduct
mot
upr
opr
iot
hesai
dref
erendum t
hrought
he
pr
ocedur
esabov
epr
escr
ibed.Ther
esul
toft
he
r
efer
endum shal
lbecer
ti
fi
edbyacommi
tt
ee
desi
gnat
eddur
ingt
heconductofar
efer
endum t
o
super
viset
hesame.

Thegener
almember
shi
pthr
ought
hei
rpr
oponent
s
f
orr
efer
endum shal
lsubmi
tal
lthedocument
ary
r
equi
rement
sforr
esi
gnat
iont
otheconcer
ned
CDAEx
tensi
onOf
fi
ce,
whi
chmayr
egi
stert
he
appl
i
cantEl
ect
ri
cCooper
ati
veuponf
indi
ngt
hatal
l
t
hedocument
sforr
egi
str
ati
onar
ecompl
eteand
i
nor
der
.

Sect
ion10.Amendment
sofEx
ist
ingAr
ti
clesof
Cooper
ati
onandBy
-l
aws.Anypr
ovi
sionorany
par
tther
eofi
ntheex
ist
ingAr
ti
clesofCooper
ati
on
andBy
-l
awsoft
hecooper
ati
ve,
whi
char
efoundt
o
bei
nconsi
stentorcont
rar
ytot
hepr
ovi
sionsoft
he
Codeandoft
hisRul
eshal
lbeamended
accor
dingl
y.Suchamendment
sshal
lconf
ormt
o
t
hepr
ovi
sionofAr
t.18oft
heCode.Sai
d
appl
i
cat
ionf
oramendment
sshal
lbef
il
edwi
tht
he
concer
nedCDAEx
tensi
onOf
fi
ceort
heCDA
Cent
ral
Off
ice,
att
heopt
ionoft
heCooper
ati
ve,
in
f
our(
4)copi
esf
orr
egi
str
ati
on.

Sect
ion11.Capi
tal
i
zat
ion.Anel
ect
ri
ccooper
ati
ve
shal
lnotber
egi
ster
edwi
tht
heAut
hor
it
yunl
essi
t
compl
i
eswi
tht
hef
inanci
alr
equi
rement
sof
mi
nimum pai
dupcapi
tal
i
zat
ionofFi
veMi
l
li
on
Pesos(
P5,
000,
000.
00)
.

Sect
ion12.Shar
eCapi
tal
int
heEl
ect
ri
c
Cooper
ati
ves.El
ect
ri
cCooper
ati
vesshal
li
ssue
anddi
str
ibut
eshar
ecer
ti
fi
cat
esundert
hename
ofeachoft
hei
rmember
s.Sai
dshar
ecer
ti
fi
cat
es
shal
ltakei
ntoconsi
der
ati
on,
amongot
her
s,t
he
pr
evi
ousequi
tycont
ri
but
ions,
andt
he
amor
ti
zat
ioncomponent
,thr
ought
hepay
ment
s
made,
capi
tal
bui
l
d-upandot
hercapi
tal
cont
ri
but
ions.Thei
nter
estonshar
ecapi
tal
shal
l
bepai
dtot
hemember
sinaccor
dancewi
tht
he
pr
ovi
sionofSec.9,
Rul
e10oft
heRul
esand
Regul
ati
onsI
mpl
ement
ingCer
tai
nPr
ovi
sionsof
t
hePhi
l
ippi
neCooper
ati
veCodeof2008(
RA
9520)
.

Sect
ion13.Quor
um Requi
rement
.Unl
ess
ot
her
wisepr
ovi
dedi
ntheBy
-l
awsoft
heEl
ect
ri
c
Cooper
ati
ve,
quor
um shal
lbef
ivepercent
um (
5%)
ofal
lthemember
sent
it
ledt
ovot
e.
Sect
ion14.Ter
m ofOf
fi
ce.Unl
essot
her
wise
pr
ovi
dedi
ntheBy
-l
awsoft
heEl
ect
ri
cCooper
ati
ve,
t
het
erm ofof
fi
ceoft
hemember
soft
heBoar
d
shal
lnotex
ceedt
wo(
2)y
ear
s,howev
er,
theyshal
l
beel
i
gibl
eforr
e-el
ect
ion.

Sect
ion15.r
atesandTar
if
fs.Al
lel
ect
ri
cit
yrat
es
andt
ari
ff
sofel
ect
ri
ccooper
ati
vesr
egi
ster
ed
undert
heAut
hor
it
yshal
lbesubj
ectt
other
uleson
appl
i
cat
ionandappr
oval
ofandbyt
heEner
gy
Regul
ator
yCommi
ssi
on.

Sect
ion16.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
lbeset
tl
edasf
aras
pr
act
icabl
ethr
oughconci
l
iat
ion-
medi
ati
on
mechani
sm embodi
edi
nthecooper
ati
veby
-l
aws,
whi
chshal
lbei
naccor
dancewi
tht
heCDA
Gui
del
i
nesf
ort
heI
mpl
ement
ati
onofConci
l
iat
ion
ofCooper
ati
veDi
sput
es,
andappl
i
cabl
elaws.

Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionori
ncour
tofcompet
entj
uri
sdi
cti
on.
Howev
er,
incaseswher
ethei
ssue/
sfal
lwi
thi
nthe
j
uri
sdi
cti
onoft
heEner
gyRegul
ator
yCommi
ssi
on,
t
hesameshal
lber
efer
redt
othesai
dagencyand
shal
lber
esol
vei
naccor
dancewi
tht
hisr
egul
ati
on.

RULEVI
I-
DAI
RYCOOPERATI
VES

Pur
suantt
othepr
ovi
sionsofRepubl
i
cAct
.No.
9520,
other
wiseknownast
hePhi
l
ippi
ne
Cooper
ati
veCodeof2008,
theCooper
ati
ve
dev
elopmentAut
hor
it
yandNat
ional
Dai
ry
Aut
hor
it
yher
ebypr
omul
gat
edt
hef
oll
owi
ngr
ules
andr
egul
ati
onsf
ort
hegui
danceandcompl
i
ance
oft
heDai
ryCooper
ati
ves.

Sect
ion1.Cov
erage.Thi
sRul
eshal
lcov
eral
ldai
ry
Cooper
ati
vesdul
yregi
ster
edunderR.
A.9520
or
gani
zedf
ort
hepur
poseofengagi
ngi
nthe
pr
ocur
ement
,pr
ocessi
ngandmar
ket
ingofmi
l
k
anddai
rypr
oduct
s.
Sect
ion2.Or
gani
zat
ion.Fi
ft
een(
15)ormor
e
nat
ural
per
sonswhoar
eFi
l
ipi
noci
ti
zens,
ofl
egal
age,
hav
ingacommonbondi
nter
estandact
ual
l
y
r
esi
dingorwor
kingi
nthei
ntendedar
eaof
oper
ati
on,
mayor
gani
zeadai
rycooper
ati
ve.

Sect
ion3.Pur
posesandObj
ect
ives.ADai
ry
Cooper
ati
veshal
lbeor
gani
zedf
oranyoral
loft
he
f
oll
owi
ngpur
pose:

1.Tost
andar
diz
ethequal
i
ty,
uni
for
mlyofgr
adeof
mi
l
k,andot
herdai
rypr
oduct
s;

2.Toassi
sti
tsmember
saguar
ant
eedmar
ket
out
let
,tobar
gai
nfort
hebestpr
icet
ermspossi
ble
i
nthemar
ketpl
ace,
incl
udi
ngov
er-
order
pr
emi
umsi
nmi
l
kmar
ket
ingor
der
s,andt
omar
ket
t
hemi
l
kef
fi
cient
ly,
i.
e.,
bal
anci
ngpl
antneeds,
di
ver
ti
ngmi
l
ksur
pluses,
andassembl
i
ngpr
oducer
mi
l
kandt
ohav
ethehi
ghestqual
i
typr
oducermi
l
k
possi
blei
nthemar
ket
;and
3.Toef
fect
ivel
yrepr
esentt
hei
rconst
it
uti
ng
member
sint
hel
egi
slat
ive,
regul
ator
yandpubl
i
c
r
elat
ionsar
enas.

Sect
ion4.Member
shi
p.Member
shi
pinDai
ry
Cooper
ati
veshal
lbeopent
oal
ldai
ryf
armer
s.

Sect
ion5.Regi
str
ati
onJur
isdi
cti
on.Anyappl
i
cant
Dai
ryCooper
ati
veshal
lfi
l
eit
sdul
yaccompl
i
shed
appl
i
cat
ionf
orr
egi
str
ati
onwi
tht
heVDAEx
tensi
on
Of
fi
ce,
whi
chshal
lhav
ejur
isdi
cti
onov
ert
hesai
d
cooper
ati
ve.

Sect
ion6.Regi
str
ati
onRequi
rement
s.The
f
oll
owi
ngshal
lbecompi
l
edwi
thuponf
il
ingof
appl
i
cat
ion:

1.NameVer
if
icat
ion;

2.Ar
ti
clesofCooper
ati
onandBy
-l
aws;
3.Swor
nSt
atementoft
het
reasur
erel
ect
edbyt
he
subscr
iber
sshowi
ngt
hatt
hel
eastt
went
y-f
iveper
cent
um (
25%)oft
heaut
hor
izedshar
ecapi
tal
has
beensubscr
ibedandatl
eastt
went
y-f
iveper
cent
um (
25%)oft
het
otal
subscr
ipt
ionhasbeen
pai
d:Pr
ovi
ded,
Thati
nnocaseshal
lthepai
d-up
shar
ecapi
tal
bel
esst
hanFi
ft
eenThousandPesos
(
P15,
000.
00)
;

4.Pr
e-member
shi
pEducat
ionSemi
nar(
PMES)
;

5.Sur
etyBondAccount
abl
eOf
fi
ceshandl
i
ng
f
unds,
proper
ti
esandsur
eti
es;

6.Economi
cSur
vey
;

7.Under
taki
ngt
oChangeNamei
ntheev
entt
hat
anot
hercooper
ati
veacqui
redpr
iorr
ightt
otheuse
oft
hepr
oposedname;

8.Under
taki
ngt
ocompl
ywi
tht
heaudi
ti
ngand
account
ingst
andar
dspr
escr
ibedbyt
heAut
hor
it
y;

9.Ot
herr
equi
rement
sasmayber
equi
redbyl
aw;
and

10.Regi
str
ati
onf
ee.

Sect
ion7.Capi
tal
i
zat
ion.ADai
ryCooper
ati
veshal
l
hav
eami
nimum pai
d-upcapi
tal
i
zat
ionofatl
east
Fi
ft
eenThousandPesos(
P15,
000.
00)
.

Sect
ion8.Regul
ator
yPower
.TheAut
hor
it
yshal
l
hav
ethepowert
oregul
atet
hei
nter
nal
aff
air
sof
Dai
ryCooper
ati
ve,
suchas:

a.Ex
erci
seofr
ight
sandpr
ivi
l
egesofmember
s;

b.For
mul
ati
onofRul
esandpr
ocedur
esandt
he
conductofmeet
ingsoft
heGener
alAssembl
y,
Boar
dofDi
rect
orsandCommi
tt
ees;
c.Mannerofel
ect
ionandqual
i
ficat
ionsofOf
fi
cer
s,
Di
rect
ors,
andCommi
tt
eeMember
s;

d.Al
l
ocat
ionanddi
str
ibut
ionofnetsur
plus;
and

e.Ot
hermat
ter
srel
ati
ngt
othei
nter
nal
aff
air
sof
Dai
ryCooper
ati
ves.

Al
lmat
ter
srel
ati
ngt
othet
echni
cal
andoper
ati
ons
concer
ningdai
rybusi
nessofsuchDai
ry
Cooper
ati
veshal
lber
egul
atedbyNDA,
DOH-
BFAD
andot
herconcer
nedgov
ernmentagency
.

Sect
ion9.Set
tl
ementofDi
sput
es.I
ntr
a/i
nter
cooper
ati
vedi
sput
esshal
lbeset
tl
edasf
aras
pr
act
icabl
ethr
oughconci
l
iat
ion-
medi
ati
on
mechani
sm embodi
edi
nthecooper
ati
veby
-l
aws
andi
nappl
i
cabl
elaws.

Shoul
dsuchconci
l
iat
ion-
medi
ati
onpr
oceedi
ngs
f
ail
,themat
termaybeset
tl
edt
hroughv
olunt
ary
ar
bit
rat
ionbyt
heAut
hor
it
yoradj
udi
cat
ionbyt
he
Commi
ssi
onori
naCour
tofcompet
ent
j
uri
sdi
cti
on.

Howev
er,
incaseswher
ethei
ssue/
sfal
lwi
thi
nthe
j
uri
sdi
cti
onoft
heNDA,
DOH-
BFADt
hesameshal
l
ber
efer
redt
othesai
dagenci
esandshal
lbe
r
esol
vedi
naccor
dancewi
tht
hei
rregul
ati
ons.

COMMONPROVI
SIONS

Sect
ion1.Requi
rement
s.Acopyoft
heseRul
es
shal
lbeamongt
hedocument
srequi
redt
obekept
r
eadyandaccessi
blef
ori
nspect
ionand
ex
ami
nat
ionbyt
hemember
soft
hecooper
ati
ve
andt
heAut
hor
it
yinaccor
dancewi
thAr
t.52oft
he
Code.

Sect
ion2.I
nter
pret
ati
on.Unl
essot
her
wisest
ated
i
ntheseRul
es,
Incaseofdoubtast
othemeani
ng
ofanypr
ovi
sionoft
heseRul
es,
thesameshal
lbe
r
esol
vedandi
nter
pret
edl
i
ber
all
yinf
avoroft
he
cooper
ati
vesandt
hei
rmember
s.

Sect
ion3.Suppl
etor
yRul
e.Speci
alRul
es,
Cir
cul
ars,
Or
der
sandot
heri
ssuancesbyt
heappr
opr
iat
e
gov
ernmentagenci
esi
npur
suanceoft
he
pr
ovi
sionsoft
heCodeandt
heseRul
es,
andnot
i
nconsi
stentt
her
eto,
shal
lhav
esuppl
etor
y
appl
i
cat
iont
otheseRul
es.

Sect
ion4.Mandat
e.TheAut
hor
it
yismandat
edt
o
i
mpl
ementandenf
orcet
heseRul
esand
Regul
ati
ons.

Sect
ion5.Separ
abi
l
ity
.Ifanypr
ovi
sionoft
hese
Rul
esandRegul
ati
onsi
sdecl
arednul
landv
oidor
unconst
it
uti
onal
,theot
herpr
ovi
sionsnotaf
fect
ed
t
her
ebyshal
lcont
inuet
obei
nfor
ceandef
fect
.

Sect
ion6.Amendment
.TheseRul
esand
Regul
ati
onsshal
lbesubj
ectt
oaut
omat
icr
evi
ew
t
hree(
3)y
ear
saf
tert
heef
fect
ivi
tyt
her
eof
.Any
amendmentt
her
eto,
shal
lbesubj
ectt
other
evi
ew
andappr
oval
oft
heJCOCC.

Sect
ion7.Ef
fect
ivi
ty.TheseRul
esandRegul
ati
ons
shal
ltakeef
fectf
if
teen(
15)day
saf
terpubl
i
cat
ion
i
ntheOf
fi
cial
Gaz
ett
eori
nanewspaperof
gener
alci
rcul
ati
on.

RECOMMENDI
NGAPPROVAL:

THEBOARDOFADMI
NISTRATORSCOOPERATI
VE
DEVELOPEMNTAUTHORI
TY

LECI
RAV.JUAREZ
Chai
rman

Thi
sImpl
ement
ingRul
esandRegul
ati
ons(
Par
tI)
wasappr
ovedbyt
heJoi
ntCongr
essi
onal
Ov
ersi
ghtCommi
tt
eeonCooper
ati
vesdur
ingi
ts
meet
ingonFebr
uar
y16,
2010att
heSenat
eoft
he
Phi
l
ippi
nes,
PasayCi
typur
suantt
oAr
ti
cle138of
RA9520.
Member
soft
heJoi
ntCongr
essi
onal
Over
sight
Commi
tt
eeonCooper
ati
ves.
Fort
heSenat
eoft
he
Phi
l
ippi
nes:

Sen.JUANMI
GUELF.ZUBI
RI
Chai
r,Senat
ePanel
Fort
heHouseoft
he
Repr
esent
ati
ves:

Rep.ERNESTOC.PABLO
Chai
r,HousePanel