I

NSOLVENCYLAW paymentofdebt sofonewho,whi l

e
possessing suff
ici
ent pr
opert
yt o
INSOLVENCY – st ate ofa per son cover hi s debts, for
esees the
whosel iabil
i
tiesaremor et hanhi s i
mpossi bil
i
tyofmeet i
ngthem when
assets.I
ti stheinabil
it
yofaper son theyrespecti
vel
yfal
ldue.
topayhisdebt sastheybecomedue
i
nt heordinarycourseofbusiness.

PURPOSE:

I
NSOLVENCYv
s.BANKRUPTCY Tosuspendordelaythepay mentof
debtstheamountofwhi ch i
snot
aff
ectedal
thoughapostponementis
decl
ared.
The only di st
inct
ion between
i
nsol
vency and bankrupt
cy i
s a
matt
er of termi
nology and the
sour
ceofthel
awsr el
ati
ngt
her
eto. BASI
S:

Probabi
li
tyofthedebt or
’sinabi
l
ityto
meet his obl i
gations when t hey
Ei
t hera bankr uptcy orinsolv
ency respect
ivel
yfal
ldue, despitethefact
statutemayoper atetodischar
gea that he has sufficient assetst o
debtaswel lasr el
easethedebtor coveral
lhisli
abil
it
ies
fr
om i mpr i
sonment ,andeit
hermay
oper ateonthepet it
ionoft
hedebtor
ort hatofhiscredi
tors.
REQUISI
TES OF PETI TI
ON FOR
SUSPENSIONOFPAYMENTS:

PURPOSESOFI
NSOLVENCYLAW: Pet
it
ioni
sfi
l
edbyadebt
or;

Possessi
ngsuffi
cientpr
oper
tyt
ocov
eral
l
his debt
s;
1.Toeffectanequit
abl
edist
ri
but
ion
ofthebankrupt
’spr
oper
tyamonghis For
eseeing t
hei
mpossi
bil
i
tyofmeet i
ng
credi
tor
s;and them when t
hey r
espect
ivel
yfall
due;and
2. To benef it the debtor i n
dischargi
ng hi
m from hi
sliabil
i
ties Pet
it
ioni
ng thathe be decl
ared i
nt he
andenabl i
nghimtostar
tafr
eshwi th st
ateofsuspensi
onofpayments
the propert
y setapartto him as
exempt . VOLUNTARY I NSOLVENCY – an
i
nsolvent debt or owi ng debt s
3. The r egul
ator
y and uni fyi
ng exceedingt heamountofP1, 000.
00
i
nf l
uence of t he law on cr edit mayappl ytobedi schargedfrom hi
s
transact
ions and business usage debtsandl i
abil
i
tiesbypet i
ti
ont ot
he
throughoutthecountr
y. RTCoft heprovi
nceorci tyinwhich
hehasr esi
dedf orsixmont hsnext
precedi
ngt hefi
li
ngoft hepetit
ion.
SUSPENSI
ON OF PAYMENTS –
post
ponement
,bycour
tor
der
,oft
he

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 INVOLUNTARY I NSOLVENCY – an for the successf
ul r
ecov
ery of t
he
adjudicati
on ofi nsolvencymaybe corpor
ati
on.
”
made on t he petit
ion oft hree or
It must cont ai
n enough i nformati
on t o
mor e creditors,resident s of t he persuade the credit
ors,r eceiverand t he
Phili
ppines, whose cr edi
ts or court t hat r ehabi
lit
ation i s f easible,
demandsaccr uedi nthePhi l
ippi
nes, profi
tabl
e,andwor ktot hebesti nterestof
andt heamountofwhi chcr edit
sor the vari
ous stakeholders.The Pl an must
demandsar eintheaggr egateofnot i
dent i
fyt he source oft he ai lment;and
prescri
be the remedy .A Pl an mustset
l
esst hanP1, 000.
00. real
isti
ct ar
getsandpr ovidet hedet ail
son
howt oachievethem.

CORPORATEREHABI
LITATI
ON C.Rehabi
l
itat
ionRecei
ver
Rehabilitati
on i s i ntended t o enable a
Thecr editorsandt hedebt orcompanyhav e
dist
ressed cor por ati
ont ogai nanewl ease
compet ingi nt
er ests.Itisdesirablethatan
on lif
e,so t o speak,and t o cont
inue i
ts
i
mpar tialandcompet entthir
dper sonassist
businessasagoi ngconcer n.Ont heother
the r ehabi l
i
tation cour tin assessing the
hand,i nsolvencyi si ntendedt ocloseand
feasibilit
y of r ehabil
it
ation t he debtor
l
iquidate an i nsolventcor porati
on (pl
ease
company a bal ancing t he compet i
ng
notet hati nsolv
ency i s al so avai
labl
et o
i
nter ests oft he par ti
es.The l aw shoul d
i
ndividual s or nat ural per sons, whi l
e
definet heext entoft hereceiver’
spower s.
rehabil
itati
on i s av ai
lable onl y t o
corporations, partnerships and
associations). D.Ri
ght
soft
hePar
ti
es

The law should define and delineatethe

Thef ol
lowingaret
hev
italcomponent
sofa ri
ghtsoft hepartieswhi l
er ehabi l
i
tati
onis
rehabil
i
tati
onlaw: ongoing.Forexampl e,thelaw asi tst
ands
doesnotspeci f
ywhet herther ehabil
it
ati
on
courthast heauthor i
tytor el
ieveadebt or
A.St
ayOr
der
fr
om pay i
nginter
estr atesort or equir
ethe
debtor to pay hi gher int
erest r at
es to
Ast ayorderissomet i
mesessent i
altothe securedcredit
orscompar edt ounsecur ed
survi
valofadi str
essed company .A stay credi
tors.
orderkeepsatbayt hepackofunhappyand
underst
andably impatient credi
tor
s and
prevent
st hem from t ear
ing apart and
bri
nging aboutthe cer t
ain deat
h oft he
helpl
esscompany . E.Rehabi
l
itat
ionCour
t

Thecr iti
cali ssue,then,isnotwhet hert o Sincer ehabi l
itat
ioninv olvest hecompet ing
empower t he cour ts t o suspend t he i
nt erest soft hedebt orandt hecr edit
ors,as
asserti
on/enf orcementofcl aims,butwhen thepubl ichas,t oanext ent,ast akeint he
thesuspensi ont akesef f
ectandi fi
tshoul d out comeoft her ehabili
tationpr ocess,t he
applywhol esal etoal
lclai
ms.UnderP. D.No. i
nt erv ent i
on of our cour ts becomes
902-A,itistheactofappoi nt
ingthereceiver necessar y.Thecour ti staskedt oconsi der
thattri
gger st hatsuspensionof“allacti
ons andbal ancet hecompet ingi nterestsoft he
forclai
ms. ” debt or ,cr editors,andt hepubl ic.Thel aw
shoul d be f lexibl
e enough t o al l
ow t he
rehabi l
itation cour t t o exer cise some
B.Rehabi
l
itat
ionPl
an
discr etion i n deci di
ng i ssues but
compr ehensi ve enough t o putr easonabl e
The Rehabi
li
tati
on Pl an i
st he map that l
imi ts on such di scretion. Too much
gui
desthef l
ounderingcompanyoutoft he fl
exi bilityint heexer ciseofcour tdiscretion
shoal
soff i
nancialdistr
ess.Asprovi
dedi n i
s t ant amount t o sur render i
ng t he
RombeEximtrade (Phil
s.)
,Inc.v.Asiatr
ust Legi slat ure’sfunct i
onst ot heJudi ciar
y .On
Devel
opmentBank i tcontains“
theformula

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
theotherhand,tool i
tt
ledi
scret
ionwould Thecompl ai
nantwillsentyouanot i
ceof
resul
tinthemechanicalappl
icat
ionoft
he dishonortoprovethaty ouwer
eawar ethat
l
aw and di sregard t he peculiar youhadi nsuff
ici
entfundsandthatt
hebank
cir
cumstancesofeachcase. dishonor
edy ourcheck.

Cont
ent
sofPet
it
ion Thi
s noti
ce cr
eates the pr
esumpt
ion t
hat
youknewabouttheinsuff
ici
ency
.
Asoneoft hecont entsofthepet i
tion,whi ch
shal
lbev eri
fi
edbyadul yauthori
zedof f i
cer Thenoti
ceofdishonormaybegiv
enby:a.
ofthedebt or,Sect i
on9pr ovi
dest hatt here theoneyouissuedthecheckt
o;orb.the
be a “ nomination oft hr
ee Rehabi li
tation bank.
Receiverswi t
htheiraccompany i
ngbi o-dat a,
fr
om whi chonemaybeappoi ntedbyt he Note!Thisshoul dbewr it
tennoti
ceorat
court:Providedt hati fthecour tdoesnot l
eastclearproofofnotice.Rememberthat
fi
ndanyoft hosenomi natedaccept able,i t thi
sisacr iminalcaseandt hegui
l
tshould
may ,atitsdiscretion,appointar eceiverof beestabl
ishedbeyondreasonabl
edoubt
.
i
tsownchoi ce.”

The r i
ghtt o nominatet he Rehabi l
i
tati
on
Receivershouldri
ghtl
ybel ongt othedebt or WHATI
FNOTI
CEI
SREALLYGI
VEN?
or,i n cases wheret he r ehabil
i
tati
on i s
i
ni t
iat
edbyt hecredit
ors,wi t
ht hecredit
ors. The law gives y
ou fi
ve(5)banki ng days
Ther ecei
verhasani mpor tantandsensitive afterrecei
vi
ng the not
ice ofdishonort o
roletoplayanditiscrucialthatheenjoythe fundt hecheckormakear rangementsf or
trustandconfi
denceoft hepar ti
es. thepay ment
.

If,aspr oposedunderHouseBi ll3542,t he (

Banki
ngDay
s=Mondayt
oFr
iday
)
courtsar egiventheauthori
tytodi sregard
thenomi neesoft hedebtor
/creditor
,t hen Whatel
seshoul
dwer
emember
?
the law shoul d, at least, define t he
quali
ficati
onsoftherecei
veri
nor dertol i
mit
Eveni fthecriminalcasewillnotpr osper ,
thediscreti
onofthecourtsi
nappoi nti
ngt he
you mayst i
l
lbe hel dliabl
ef ort he civi
l
recei
ver.
aspect.Thi
smeanst haty
ouhav etopayt he
persony ouissuedt hecheckt o– usual l
y
BP22(
BOUNCI
NGCHECKS) withlegalint
erestandot herinter
estst hat
theCourtmayi mpose.
To be li
able underB. P.22,itmustbe
establ
i
shedt hatthecheckwasi ssuedand
thatitwas di shonored.Itmustal so be CHECKSWI
THOUTSUFFI
CIENTFUNDS
shown thaty ou,the accused,knew that
wheny ouissuedthecheck,theaccountwil
l Sect
ion1.Checkswi
thoutsuff
ici
entf
unds.-
notbesuffi
cientl
yfundeduponpresentment Anypersonwhomakesordr awsandissues
ofthechecktot hebank. anychecktoappl
yonaccountorforv
alue,

ForaB.P.22casetoprosper,t
hefol
l
owi
ng a.knowingattheti
meofi ssuet
hathedoes
shoul
dbesuff
ici
ent
lyestabl
i
shed: nothavesuf f
ici
entfundsinorcredi
twith
thedraweebankf orthepay mentofsuch
1.Acheckwasi
ssued; checkinful
luponit
spresentment
,

2.Atthe ti
me ofi ssue,the per
son who b.whi chchecki ssubsequentl
ydishonor
ed
i
ssuedthecheckknewt hatther
ewouldnot by the drawee bank f orinsuff
ici
ency of
besuff
ici
entf
undsifthecheckispresent
ed funds or cr edit or would hav e been
tot
hebank; dishonoredforthesamer easonhadnotthe
drawer ,
3.Thechecki
sdi
shonor
ed.
c.withoutany val
i
dr eason,ordered t
he
Not
iceofDi
shonor banktostoppayment,shallbepunishedby
i
mprisonmentofnotl esst hanthir
tydays

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
butnotmor ethanone(1)yearorbyaf i
ne reasonwri
tt
en,st
ampedoratt
achedbyt
he
ofnotlessthanbutnotmor ethandouble draweeonsuchdi
shonor
edcheck.
theamountoft hecheckwhichfineshalli
n
no case exceed Two Hundred Thousand CREDI
TCOSNTRUED
Pesos,orbothsuchfineandimpr i
sonment
atthedi
screti
onofthecour
t. Thewor d"credi
t"asusedherei
nshal
lbe
const
rued to mean an arr
angement or
under
standi
ng wi t
h the bank for t
he
EVI
DENCE OF KNOWLEDGE OF paymentofsuchcheck.
I
NSUFFI
CIENTFUNDS

Sect
ion 2. Ev i
dence of knowl
edge of ever
y par t
ner is responsi
ble to the
i
nsuffi
ci unds.
entf part
nershi
pf or damages suff
ered by i
t
thr
oughhisfaul
t
a.Themaking,drawingandi ssuanceofa
checkpaymentofwhi chisrefusedbyt he he cannotcompensat ethem withthe
draweebecauseofinsuff
ici
entf undsi
nor profi
ts and benef
it
s,which he mayhave
credi
twi
thsuchbank, earnedforthepart
nershi
pbyhisi
ndust
ry

b.whenpr esentedwit
hinni net
y( 90)day s the cour
ts may equi
tabl
ylessen hi
s
from t
hedat eofthecheck,shallbepr i
ma r
esponsi
bil
i
ty
faci
e ev idence of knowl edge of such
i
nsuffi
ciencyoff undsorcreditunlesssuch
makerordr awerpay st
hehol derthereofthe COOPERATI
VE
amountduet her
eon,
Thel aw whi chgov ernscooper ati
ves,pri
or
c.ormakesar rangementsforpaymenti n totherecentenact mentof  
RepublicActNo.
ful
lbythedraweeofsuchcheckwi thi
n( 5) 9520(“Phil
ippine Cooper ati
ve Code of
banki
ng days afterrecei
vi
ng not
ice that 2008”), i
s Republi
c Act No.
suchcheckhasnotbeenpaidbythedrawee. 6938 (“
Cooper ative Code of the
Phil
ippines”)
.Her e’sabasi cdi scussi
onon
thenew l aw (amor eext ensi
vepr imerwil
l
DUTYOFDRAWEE subsequent l
y be r eleased,initi
all
y made
avail
abletocl i
ents).
Section 3. Duty of dr awee; rules of
evidence.–Itshallbethedut yofthedr awee Definiti
on.Acooper ativeisan  autonomous
ofanycheck, and dulyr egisteredassoci ati
onofper sons,
whenr efusingtopayt hesamet ot hehol der withacommonbondofi nterest,whohav e
thereofuponpr esent
ment ,t
ocauset obe voluntari
lyj oinedt ogethert oachiev et heir
writt
en, pr int
ed, or st amped i n pl ain social,economi c, and cul turalneeds and
l
anguaget hereon,orat tachedthereto,t he aspirati
ons  by making equi t
able
reasonf ordr awee'sdishonororr efusalt o cont r
ibutions t
o the capital
payt hesame: required,
 pat r
onizing t heir pr oducts and
services andaccept ingaf airshareoft he
Provi
ded,thatwher ether
earenosuf f
ici
ent ri
sks and benef it
s oft he under taking in
fundsinorcr editwithsuchdr aweebank, accor dance wi t h uni ver sall
y accept ed
suchfactshallalwaysbeexpli
citl
yst
atedin cooper ative pri
nciples. (
Itali
cized
thenoti
ceofdi shonororr
efusal
. wor ds/phr asesar ei nsert
edundert henew
l
aw. )
In allpr osecut i
ons under t hi
s Act ,t he
i
nt r
oductioni nev i
denceofanyunpai dand Pur pose.Thedeclaredpur poseoft helaw,
dishonored check,hav ing t he dr awee' s amongot hers,i
stof osterthecreationand
refusaltopayst ampedorwr i
ttenthereonor growt h of cooperatives as a pr act
ical
attachedt hereto,wi thther easont her efor vehicle for promoting sel f
-r
eliance and
asaf oresaid,shallbepr imaf acieev idence harnessing people power t owar ds t he
oft hemaki ngori ssuanceofsai dcheck, attainmentofeconomi cdev elopmentand
andt heduepr esent menttot hedr aweef or soci al
just
ice.
pay mentandt hedishonort hereof,andt hat
thesamewaspr operlydishonoredf ort he Pr
inci
plesofCooper
ati
vi
sm.Thef
oll
owi
ng

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
ar
ethedecl
aredpr
inci
plesofcooper
ati
vi
sm: such members who are ent
it
led tovote
under t
he arti
cles of cooperat
ion and
Volunt
ary and open member ship. byl
awsofthecooperat
ive.
Member shipinacooper at
iveisvolunt ary
andavailabl
etoal
lindi
vi
dualsregar
dlessof "ART.33.Power soft heGeneralAssembl y
.
thei
r social
,poli
ti
cal,raci
alor religious Thegener alassemblyshallbet hehi ghest
backgr
oundorbeli
efs. poli
cy-makingbodyoft hecooperati
v eand
shal
lexercisesuchpower sasar estat edin
Democr ati
cmembercont r
ol.Cooperati
ves thi
sCode,i ntheart
iclesofcooperati
onand
are democr ati
c or gani
zations that are i
nt he bylaws of t he cooperat
ive.The
controll
ed byt heirmember swho activel
y generalassemblyshal lhavethef ollowing
part
icipatei n setti
ng their poli
cies and excl
usivepowerswhi chcannotbedel egate:
makingdeci sions.Inpr i
mar ycooperat
ives,
member shav eequalv oti
ngr ight
sofone- "
(1)Todetermineandappr
oveamendments
member ,one-vote.Cooper ati
ves atother t
otheart
iclesofcooper
ati
onandby
laws;
l
evelsar eorganizedinthesamedemocr ati
c
manner . "(
2)Toel ectorappointthemember softhe
boardofdi r
ectors,andtoremov ethem for
Membereconomi cparti
cipati
on.Member s cause.Howev er,inthecaseoft heelect
ric
contri
buteequitablyto,anddemocr ati
call
y cooperat
ives regist
ered underthi
s Code,
control
,thecapitaloftheircooper
ati
ves.At el
ecti
onoft hemember soft heboardshall
l
eastpar toft hatcapi t
ali sthecommon beheldi naccor dancewi t
hi t
sby lawsor
propert
y of the cooper ati
ve.They shall el
ecti
on gui deli
ne of such el ect
ric
recei
v elimit
ed compensat i
on or li
mited cooperat
ive;and
i
nterest,ifany,oncapi talsubscri
bedand
paidasacondi t
ionofmember shi
p. "(
3)Toapprovedev
elopment
alpl
ansoft
he
cooper
ati
ve.
Autonomyandi ndependence.Cooper
ati
ves
are autonomous,sel f
-hel
p organi
zati
ons "Subjectt o such otherpr ovi
sions oft hi
s
contr
oll
edbytheirmember s. Codeandonl yforpur posesofpr omptand
i
ntell
igent deci si
on-maki ng, the gener al
assembl ymaybeat hr ee-
four
ths(3/4)vote
Cooperat
ion among cooperati
ves.
of al li ts member s wi thv oti
ng rights,
Cooperat
ives ser
vet heirmember s most
presentandconst it
utingaquor um, del
egate
ef
fecti
vel
yandst rengthent hecooperativ
e
someofi tspowerst oasmal l
erbodyoft he
movement by wor ki
ng t ogether thr
ough
cooper ative. These power s shal l be
l
ocal,national
,regi
onaland i nt
ernat
ional
enumer ated under t he by l
aws of t he
st
ructur
es.
cooper ative.
Cooperat
ive education. All cooperati
ves ART.9.Cooperat
ivePowersandCapacit
ies.
shallmakepr ovi
sionf ortheeducat i
onof –Acooper at
iveregist
eredunderthi
sCode
thei
rmember s,off
icersandempl oyeesand shal
lhavet he f
ollowing power
s,RIGHTS
ofthegeneralpubl
icbasedont heprinci
ples andcapaci
ti
es:
ofcooperat
ion.
ToFORM SUBSI
DIARYCOOPERATI
VESAND
Concernforcommuni ty.Cooperat
iveswork j
oinfeder
ati
onsoruni
ons,asprovi
dedi
n
forthe sustai
nable developmentoft hei
r thi
sCode;
communi t
iesthroughpoliciesapprovedby
thei
rmember s.Thisi
sanewpr ovi
sion. To AVAI L OF LOANS,BE ENTI TLED TO
ADMI NI
STRATI ON CREDITANDTOacceptandr eceivegrants,
donati
onsandassistancefr
om f orei
gnand
"ART. 32. Composit
ion of t
he Gener al domesticsour
cesSUBJECT
Assembly.Thegeneralassemblyshal
lbe TO THE CONDI TI
ONS OF SAI D LOANS,
composed of such member s who ar e CREDITS, GRANTS, DONATI ONS OR
enti
tl
ed t o vot
e under the ar
ti
cles of ASSISTANCETHATWI LLNOTUNDERMI NE
cooperat
ionandbyl
awsofthecooper
ativ
e. THEAUTONOMYOFTHECOOPERATI VE.

"ART.32.Power softheGener
alAssembl
y. THE AUTHORI TY, UPON WRI TTEN
Thegeneralassemblyshal
lbecomposedof REQUEST,SHALL PROVI
DE NECESSARY

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
ASSI
STANCE I N THE DOCUMENTARY
REQUI
REMENTS FOR THE LOANS, (7)Cooper ativesandt heirf
eder ati
ons,such
CREDI
T,GRANTS,DONATI
ONSANDOTHER asfar m andf i
sheryproducer sandsuppl i
ers,
FI
NANCIALSUPPORT" mar ket v endor s and such ot her
cooper atives,whi chhav ef ort heirprimar y
purpose t he pr oduction and/ or t he
ART.62.Pr
ivi
l
egesofCooper
ati
ves. mar keting of pr oductsf rom agr icul
ture,
fi
sheries and smal l ent repreneurial
Cooperativ
es r egister
ed underthis Code, i
ndust ri
es and f ederat
ions t hereof,shal l
notwit
hstandingt heprovi
sionsofanylawto havepr eferentialri
ghtsint hemanagement
thecontrary,beal soaccor
dedthefoll
owing ofpubl ic mar kets and/orl ease ofpubl i
c
pri
vil
eges: mar ketf acili
ti
es,stall
sorspaces:Pr ovi
ded,
Thatt hese r i
ghts shallonl y be ut i
l
ized
(1)Cooper ativesshallenjoyt hepr i
vil
egeof exclusively by cooper at
ives: Pr ovi
ded,
deposi t
ing t heir sealed cash boxes or furt
her,Thatnocooper ati
vef ormingaj oi
nt
containers, document s or any v aluable venture,par tnershi
p orany ot hersi mil
ar
paper sinthesaf esoft hemuni cipalorci t
y arr
angementwi t
hanon- cooper ati
veent ity
treasurers and ot hergov er
nmentof f
ices canut i
lizet heser i
ghts;
freeofchar ge,andt hecust odi
anofsuch
arti
clesshal lissuear eceiptacknowl edging (8)Cooperat
ivesengagedi ncr editservi
ces
the ar t
icl
es r ecei
ved dul y witnessed by and/orfeder
ationsshallbeent itl
edt oloans
anotherper son; credi
tl i
nes,r ediscounting of t hei
rl oan
notes,and otherel igi
ble paper s wi t
ht he
(2) Cooper ati
ves or gani
zed among DevelopmentBankoft hePhi li
ppines,the
gov er
nment empl oyees, notwi
thstanding Land Bank oft he Philippines and ot her
anyl aw orregul
ati
ont othecontrary,shal
l fi
nancial i nst i
tuti
ons except the
enjoythef r
eeuseofanyav ail
abl
espacei n BangkoSentr
al ngPi l
ipi
nas( BSP) ;
theiragency,whetherownedorr entedby
theGov ernment; "The Phi l
ippi ne Deposi t Insurance
Corpor ation ( PDI C)and ot hergovernment
(3)Cooper ati
vesr enderi
ngspeci altypesof agenci es, gov ernment -ownedandcont r
oll
ed
servicesandf acil
iti
essuchascol dstorage, corporat i
ons and gov ernment f i
nanci al
i
ce pl ant
,elect r
ici
ty,transportati
on,and i
nstitutions shal l pr ovide t echnical
similarservi
cesandf aci
l
iti
esshal lsecurea assistance to r
egi st
ered national
franchisetherefore,andsuchcooper ativ
es federations and uni ons of cooper atives
shallopent heirmember shipt oallpersons which hav e si gnif
icant engagement i n
qualifi
edintheirareasofoper at
ion; savingsandcr editoper ati
onsinor derf or
thesef eder ationsanduni onstoest abli
sh
(4)Inareaswher eappr opr
iatecooperati
ves and/ orst r engt hen thei rown aut onomous
exist,the pr eferent
ial ri
ght t o supply cooper ativedeposi ti
nsur ancesy st
ems;
gov er
nmenti nst
ituti
onsandagenci esrice,
cornandot hergrains,fi
shandot hermarine (9)A publ i
ct r
anspor tser vicecooperati
ve
products,meat ,eggs,mi lk,vegetables, maybeent itl
edt of i
nancingsuppor tforthe
tobaccoandot heragr i
cult
uralcommodi t
ies acquisiti
onand/ ormai ntenanceofl andand
producedbyt hei
rmember sshallbegranted seat ranspor tequipment ,facili
ti
esandparts
tothecooperativ
esconcer ned; through t he pr ogram oft he gover
nment
fi
nanci al instit
utions. It shal l hav
e t he
(5)Preferent ialtreatmentintheallocat
ion preferenti
alr i
ghtt ot hemanagementand
off er
til
izer s,i ncludi
ng seeds and other operat i
on ofpubl i
ct er
mi nals and ports
agri
cult
ur ali nputsandi mplements,andi n whet herland orsea t ranspor twheret he
ri
ce di stribut i
on shal l be granted t o cooper ati
ve oper ates and on secur ing a
cooperativesbyt heappropri
ategovernment franchisef oract i
v eorpot entialr
outesfor
agenci
es; thepubl i
ct ranspor t
;

(6)Preferent
ialandequitabl
etreat
menti n (10)Cooperativ
estransact i
ngbusinesswith
theallocati
onorcontrolofbot tomri
esof theGov ernmentofthePhi li
ppinesoranyof
commer cialshi
ppingvesselsi
nconnection i
ts pol i
ti
calsubdiv i
sions or any of i ts
withtheshipmentofgoodsandpr oductsof agencies or i nst
rument ali
ti
es, incl
udi
ng
cooperati
ves; government -
owned and control
l
ed

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
corporati
ons shal l be exempt f rom ai
dsandsuchot herassi
stancefrom any
prequali
fi
cat i
on bi dding r equi
rements l
ocalorf
orei
gni
nstit
uti
onwhetherpubl
icor
notwithstandingthepr ovi
sionsofRepubl i
c pr
ivat
e
Act No. 9184,ot her
wise known as,t he
Gov er
nmentPr ocurementAct; "Upon di
ssol
uti
on,such donat
ed capi
tal
shall
besubj
ecttoescheat
.
(11)Cooper ati
veshallenj
oyt hepr iv
il
egeof
beingr epr
esentedbyt hepr ov i
ncialorcit
y ART. 73. Li mitat
ion on Shar e Capi t
al
fi
scalort heOf fi
ceoft heSolicit
orGeneral, Holdings.
- No member of pr i
mar y
free ofchar ge,exceptwhen t he adver
se cooperati
ve othert han cooper
ati
vei t
self
partyistheRepublicofthePhilippi
nes; shallownorhol dmor ethantenpercentum
(10%)oftheshar ecapit
alofthecooper
ative
(12) Cooper at
ives or ganized by f acul
ty
member s and empl oyees ofeducat i
onal "Whereamemberofcooper at
ivedi
es,his
i
nstitut
ionsshallhav et hepr ef
erentialri
ght heirshal
lbeent i
tl
edtothesharesoft he
i
nt he managementoft he cant een and decedent
: Pr ovi
ded, That t he t otal
otherser vi
cesr elatedt otheoper at i
onof sharEhol
dingoft heheirdoesnotexceed
theeducat i
onali nstitutionwher et heyar e tenpercentum (10%)oft
hesharecapi
talof
empl oyed:Provi
ded,Thatsuchser v i
cesar e thecooperati
ve;
operated withi
nt hepr emi sesoft hesai d
educationali
nsti
tut i
on; and Provided,f
urther,
Thatthehei rqual
if
yandi s
admi tt
edasmember soft hecooper at
ive:
(13)Theappr opr i
atehousi ngagenci esand Providedfi
nal l
y,Thatwher etheheirfail
sto
government f inancial i nstit
utions shal l quali
fy as a memberorwher e hist otal
create a speci al wi ndow f or f inancing shareholdingexceedst enpercentum (10%)
housing projects undertaken by oftheshar ecapital,theshar eorshar es
cooperatives,withi nt
er estratesandt erms excesswi l
lr ever
tt othecooper at
iveupon
equalt o,orbet t
ert han t hose gi ven for paymentt ot hehei roft hev al
ueofsuch
social
izedhousi ngpr ojects.Thisf inancing shares.
shallbeint hefor m ofbl anketloansorl ong-
term whol esale l oans t o qual i
fied ART. 74. Assignment of Shar e Capi
tal
cooperatives,wi thoutneed f ori ndivi
dual Contr
ibut
ion orInter
est.
-no membershal l
processing. tr
ansfer his shar
es or i nt
erest in t
he
cooperat
iveoranypartt
hereofunless.
"The Authori
ty,in consultati
on withthe
appropri
ate gov ernment agenci es and (1) He has hel d such shar
e capital
concerned cooperati
ve sector
,shalli
ssue cont
ribut
ionori
nter
estf
ornotl
essthanone
rul
es and r egul
ations on al l matt
ers (1)y
ear.
concerni
nghousingcooper ati
ves.
"
(2) The assignment is made t o the
CAPI
TAL,
PROPERTYANDFUNDS cooper
ati
ve or t o a member of t he
cooper
ati
veort oapersonwhof al
l
swi t
hin
ART 71 Capi tal
– the capi
tal
izati
on of the fi
eld of t he membershi
p of t he
cooperat
ives and t
he accounti
ng cooper
ati
ve;and
procedur
es shal l be governed by t he
provi
sionoft hecodeandt her egul
ati
ons (3)The boar
d ofdi
rect
ors has appr
oved
whichshallbeissued suchassi
gnment.

ART.72.Capit
alSources.– ART.75.Capi talBuil
d- Up.-To by l
aws of
Cooper
ati
ves regist
ered underthi
s code everycooper ati
veshal lbepr ov
ided fora
mayderivethei
rcapitalfr
om anyofal
lthe reasonabl
e and r eal
istic membercapi tal
fol
l
owingsources: buil
d-up program to allow the conti
nuing
growthoft hemember s'inv
estmentint heir
1.Member ’ssharecapit
al cooperati
ve as thei
reconomi c condi
tions
2.Loansandbor rowingsincludi
ngdeposi t
s conti
nuetoi mprove.
3.Rev ol
v i
ng capit
alwhich consi stoft he
deferr
edpay mentofpat ronager efunds,or
i
nterestonsharecapital
;and ART.76.Shar
es.–Thet er
m"shar
e"ref
ers
4.Subsi di
es,donat i
ons,l egaci
es,gr ants, to a unit of capi
tal I
N A PRIMARY

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
COOPERATI VEt heparvalueofwhi chmay (2)Hei samemberi ngoodstandingoft
he
bef i
xedatanyfigureNOTMORETHANONE Phil
ippine I nst
it
ute of Cer
tifi
ed Publi
c
THOUSAND PESOS( P1,
000.00).Theshare Account ants(PICPA)andisaccredit
edby
capitalofacooperati
vei
sthemoneypaidor botht heBoar dandAccount
ancyandt he
requiredtobepai dforTHEoper ati
onsOF Authority.
THECOOPERATI VE.Themet hodFOR t he
ISSUANCEOFshar ecer
ti
ficat
esSHALLbe Thesocialaudi
tshallbeconductedbyan
prescribedi
nITSby l
aws. i
ndependentsoci
alaudi
toraccr
edi
tedbyt
he
Aut
hori
ty.
ART. 77. Fines.
– The by laws of a
cooper
ativemayprescri
beaf i
neonunpaid Perf
ormanceandsocialauditr
eport
swhich
subscr
ibedsharecapit
al:PROVIDED,THAT cont
ainthefindi
ngsandr ecommendati
ons
SUCH FI NE I
S FAIR AND REASONABLE ofthe audit
orshallbe submitt
ed tothe
UNDERTHECI RCUMSTANCES boardofdi
rector
s.

ART.78. Inv
est
ment of Capi t
al. - A The Authori
ty,in consul
tat
ion wit
ht he
cooperat
ivemayinv
esti
tscapi
tali
nanyof cooper
ati
ve sector,shal
lpromulgatethe
thefol
lowi
ng: rul
esandst andar
dsforthesocialaudi
tof
cooper
ati
ves.
(a)I
nshar esordebent
uresorsecur
it
iesof
anyothercooper
ati
ve; TYPES AND CATEGORI
ES OF
COOPERATI
VES
(b)I
nanyr eputabl
ebanki
nthel
ocal
i
ty,or
anycooper
ativ
e; ART. 23. Ty pe and Cat
egor
ies of
Cooper
ati
ves.
(
c)Insecur
it
iesi
ssuedorguar
ant
eedbyt
he
Gov
ernment; TypesofCooperati
vesmayf
allunderanyof
thefol
l
owingtypes:
(d)I
nrealst
atepr
imar
il
yf ort
heuseoft
he
cooper
ati
veori
tsmembers;or (a)Credi
tCooperati
veisonethatpr
omotes
and under t
akes sav i
ngs and l endi
ng
(e)I
nanyot
hermanneraut
hor
izedi
nthe servi
cesamongi t
smember s.I
tgener
atesa
byl
aws.
  commonpooloff undsinordertoprovi
de
fi
nancialassi
stance t
oi ts membersf or
ART.79.Rev olvi
ng Capi t
al.The gener al producti
veandprovi
dentpur
poses;
assembl yofanycooper ativemayaut horize
theboar dofdi rectorstor aisear evolving (b)Consumer sCooper ativeisoneoft he
capit
alt ost rengtheni tscapi t
alstructureby primar ypur poseofwhi chi stopr ocureand
deferr
ingt hepay mentofpat r
onager efunds dist ri
but e commodi ti
es t o member s and
and int ereston shar e capi talorby t he non- member s;
authorizeddeduct ionofaper centagef rom (c) Pr oducer s Cooper at i
ve is one t hat
thepr oceedsofpr oductssol dorser vi
ces under takes j oint pr oduct i
on whet her
rendered,orperuni tofpr oductorser vi
ces agr iculturalori ndustri
al.I tisf ormedand
handled.Theboar dofdi rectorsshallissue oper atedbyi t
smember st ounder t
aket he
revol
ving capi talcer tif
icates wi th ser ial product ionandpr ocessingofr awmat eri
als
number ,name,amount ,andr ateofi nterest orgoods pr oduced byi t
s member si nto
tobepai dandshal ldisti
nct l
ysetf ortht he fi
ni shedorpr ocessedpr oductsf orsal eby
ti
meofr et i
rementofsuchcer t
ifi
catesand thecooper ativet oi t
smember sandnon-
theamount stober et
urned." member s.Anyendpr oductori tsderiv at
ive
arisingf rom ther aw mat eri
alspr oducedby
ART. 80. Annual Audi t
. Cooper ati
ves i
tsmember s,soldi nthenameandf ort he
regi
ster
edundert hisCodeshal lbesubject accountoft hecooper ative,shallbedeemed
to an annualf i
nancial
,performance and a pr oduct of t he cooper ati
v e and i ts
socialaudit
.The f i
nancialauditshallbe member s;
conducted by an ext ernalauditor who
sati
sfi
esallthefol
lowingquali
fi
cati
ons: (d)Market
ing Cooperati
vei s one which
(1)Heisindependentoft hecooper at
iveor engagesi
nt hesupplyofpr oducti
oninputs
anyofitssubsidi
arythatheisaudit
ing;and tomembersandmar ketstheirproduct
s;

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
(e) Service Cooper ati
ve is one whi ch by margi
nal
ized fi
shermen in local
i
ties
engages i n medi cal and dent al care, whose pr
oducts ar
e marketed ei
theras
hospital
i
zat i
on, tr
anspor t
ati
on, i
nsur
ance, fr
eshorpr
ocessedproduct
s;
housing,l abor,electriclightand power ,
communi cat i
on, prof essi
onal and other (o) Healt
h Servi
ces Cooperat
iveis one
serv
ices; organi
zed for the primar
y purpose of
provi
dingmedical
,dentalandotherheal
th
(f
)Mul ti
purposeCooper
ati
veisonewhich servi
ces;
combinest wo(2)ormoreofthebusi
ness
acti
vi
ti
es of t hese dif
fer
ent t
ypes of (p)Housi ngCooper at
ivei
soneor ganizedt o
cooperat
ives; assi
storpr ov
ideaccesst ohousingf orthe
benefitofitsregularmemberswhoact i
vely
(g) Advocacy Cooperativeis a pr i
mary part
icipatei n the sav i
ngs program f or
cooperat
ivewhichpromot esandadv ocates housing.Itisco-ownedandcontrolledbyi ts
cooperat
ivi
sm amongi tsmember sandt he member s;
publi
ct hrough social
ly-
ori
ented pr oj
ects,
educati
on and t r
aining, research and (q)I
nsuranceCooperati
vei
soneengagedin
communi cati
on,andothersimi l
aract i
vi
ti
es thebusi
nessofi nsur
ingli
feandpover
tyof
toreachouttoitsi
ntendedbenef i
ciar
ies; cooper
ativesandthei
rmembers;

(h)Agrarian Reform Cooper ati

vei s one (r
) Transport Cooperati
vei s one whi ch
organi
zedbymar ginalfarmersmaj ori
tyof i
ncludeslandandseat ransport
ati
on,l
imited
whichareagr ari
anr ef
orm benefici
ari
esf or to smallvessel
s,asdef i
ned orclassif
ied
thepurposeofdev elopinganappr opriate under t he Phi l
i
ppine mar it
ime l aws,
system ofl and t
enure,land devel
opment , organi
zedundertheprov i
sionsofthi
sCode;
l
andconsol idat
ionorl andmanagementi n
areascoveredbyagr ar
ianref
orm; (s) Water Servi
ce Cooperati
ve is one
organi
zed to own,operate and manage
(i
)Cooperat
iveBankisoneor gani
zedf or waters syst
ems f or t
he provisi
on and
the pr
imar
ypurpose ofprovi
ding a wide dist
ri
buti
on of pot abl
e wat er for i
ts
rangeoffi
nanci
alser
vicestocooperat
ives member sandthei
rhousehol
ds;
andthei
rmembers;
(t
)Wor ker
sCooper ativ
ei soneorganizedby
(j
)Dair
yCooperati
veisonewhosemembers workers,i
ncludingt heself-
employed,who
areengagedintheproduct
ionoff
reshmil
k areatsamet imet hemember sandowner s
whichmaybepr ocessedand/
ormarket
ed oftheenterpri
se.Itsprinci
palpur
posei sto
asdair
yproduct
s; provi
de empl oyment and busi ness
opport
unit
iestoi t
smember sandmanagei t
(k)Educat i
onCooper ati
veisoneor gani
zed i
naccor dancewi thcooper at
iveprinciples;
fort he primary purpose ofowni ng and and
operatingl i
censededucat i
onalinstit
uti
ons
notwithstandingtheprov i
sionsofRepubl i
c (u)Otherty
pesofcooperat
iveasmaybe
ActNo.9155,ot herwise known as t he deter
minedbyt
heAuthor
it
y.
Gover nanceofBasicEducat ionActof2001;
ART. 21. Merger and Consol
i
dat
ion of
(l
)ElectricCooperativ
eisoneor ganizedfor Cooper
ati
ves.
thepr i
mar ypur
posedofunder takingpower
generati
ons, ut i
li
zing renewabl e ener gy (1) Two (2)ormore cooper
ati
ves may
sources, i ncluding hy bri
d sy stems, mergeint
oasingl
ecooper
ati
vewhichshall
acquisit
ion and operation of eit
her be one of t he const i
tuent
subtransmissi
on or di str
ibuti
on t o its cooper
ati
ves or t he consol idated
househol dmember s; cooper
ati
ve.

(m)FinancialService Cooperat
iveis one (2)Nomer gerorconsol
idati
onshal lbev ali
d
organi
zed f or t
he pr imary purpose of unless approved bya t hree-f
ourths (3/4)
engagi
ngi nsavi
ngsandcr editser
vicesand voteofal lthemember swi thv ot
ingr i
ght s,
otherf
inanci
alser
vices; presentandconst it
uti
ngaquor um ofeach
oft heconstit
uentcooperativesatsepar ate
(
n)Fi
sher
menCooper
ati
vei
soneor
gani
zed generalassembl ymeetings.Thedi ssenting

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
member sshal
lhav etherightt
o exer
cise Wher e no Cr edit
ors are Af fect ed.Ift he
thei
rr i
ghtto wi
thdraw t
heirmembership dissolution of a cooper at
ive does not
pursuantt
oArt
icl
e30. prejudicet herightsofanycr edit orhav i
nga
claim agai nsti t,the dissoluti
on may be
(3)TheAut hori
tyshalli
ssuet heguideli
nes affectedbyamaj or
ityvoteoft heboar dof
governi
ng t he procedure of mer ger or directors,andbyar esol
ut i
ondul yadopt ed
consoli
dationofcooper ativ
es.Inanycase, byt heaf fir
mat i
vev oteofatl eastt hree-
themer gerorconsol i
dati
onofcooper at
ives. fourths( 3/4)ofal lt
hemember swi t
hv oti
ng
In anycase,t he mergerorconsol idat
ion ri
ght s,presentandconst ituti
ngaquor um at
shallbeef fect
iveupont heissuanceoft he a meet ing to be hel d upon cal loft he
certi
fi
cateofmer gerorconsol
idati
onbyt he directors:
Authori
ty.
Prov i
ded, Thatt
henot i
ceoftime, placeand
ART. 22. Ef fect
s of Mer ger and obj
ectoft hemeeti
ngshallbepubl i
shedf or
Consoli
dat
ion.Themer gerorconsol
idat
ion thr
ee( 3)consecuti
veweeksi nanewspaper
ofcooperati
ves shallhavethe foll
owing publi
shedi ntheplacewher et hepr i
ncipal
ef
fects: off
iceofsai dcooperati
veislocated, orifno
newspaperi spubl
i
shedi nsuchpl ace,ina
(1) The consti
tuent cooperat
ives shall newspaperofgener alcircul
at i
on i nt he
becomeasi ngl
ecooperati
vewhich,incase Phil
ippines:
ofmerger,
shall
bet hesurv
ivi
ngcooperat
ive,
and,incaseofconsol i
dati
on,shallbethe Provided,fur t
her,Thatthenoticeofsuch
consol
idat
edcooperati
ve; meet i
ngi ssentt oeachmemberofr ecord
ei
therby r egi st
ered mailorby per sonal
(2) The separ ate existence of t he deli
veryatleastt hi
rt
y(30)dayspri
ort osaid
consti
tuentcooperati
vesshallcease,
except meet i
ng. A copy of t he r esoluti
on
thatoft he surv
iving orthe consoli
dated authorizi
ngt hedissol
uti
onshallbecer ti
fi
ed
cooperati
ve; tobyamaj ori
tyoftheboar dofdi r
ectors
andcount ersignedbytheboardsecretary.
(3) The sur vi
vi
ng or t he consolidated
cooperat
ive shallpossess althe asset s, The Aut
hor
it
y shallther
eupon i
ssue t
he
ri
ghts,pr
ivi
l
eges,immuni t
iesandfr
anchi ses cer
ti
fi
cat
eofdissol
uti
on.
ofeachoftheconstit
uentcooperat
ives;
ART.65.Vol
unt
aryDi
ssol
uti
on
(4) The sur vi
vi
ng or the consolidated
cooperat
ive shal
lpossess allt
he asset s, Wher e CreditorsAr e Affected.Wher et he
ri
ghts,pr
ivi
l
eges,immuniti
esandfranchises dissolutionofacooper ativemaypr ejudi ce
ofeachoftheconsti
tuentcooper
ati
ves;and ther i
ght sofanycr editor,thepet it
ionf or
dissolutionshal lbef il
edwi t
ht heAut hor ity
.
(5) The sur vi
vi
ng or t he consolidat
ed Thepet iti
onshal lbesi gnedbyamaj or i
tyof
cooperat iv
eshal lber esponsibleforallt
he i
ts boar d ordi rectors orot herof ficers
l
iabil
it
ies and obl i
gation ofeach oft he managi ng i ts af f
airs, v eri
fi
ed by i ts
consti
tuent cooper atives in t he same chairper sonorboar dsecr etaryoroneofi ts
mannerasi fsuchsurv i
v i
ngorconsolidat
ed directorsandshal lsetf orthallclaimsand
cooperat iv
e had i t
sel f incurr
ed such demandsagai nstitandt hatitsdissol ution
l
iabil
it
iesorobl i
gati
ons.Anycl aim,acti
onor wasr esolveduponbyt heaf fi
rmativev oteof
proceedingpendi ngbyoragai nstanysuch at l east t hree-f
our t
hs ( 3/4) of al lt he
consti
tuent cooper atives may be member s wi t
hv oti
ng r i
ghts,pr esentand
prosecut edbyoragai nstthesur vi
vingor const it
ut i
ngaquor um atameet i
ngcal led
consolidatedcooper ative,ast hecasemay forthatpur pose.
be.Nei thert her i
ghtsofcr editor
snorany
l
ien upon t he proper t
y of any such "I
ft he pet it
ion is suf ficientinf orm and
consti
tuentcooper ati
vesshal lbei mpair
ed subst ance,theAut horityshal li
ssueanor der
bysuchmer gerorconsol i
dati
on. reci
tingt hepur poseoft hepet i
ti
onandshal l
fi
xadat ewhi chshal lnotbel esst hanthirt
y
DI
SSOLUTI
ONOFCOOPERATI
VES (30)normor ethansi xty( 60)day safterthe
entr
yoft heorder.Bef oresuchdat e,acopy
ART.64.Vol
unt
aryDi
ssol
uti
on oftheor dershal lbepubl ishedatleastonce
aweekf orthree(3)consecut iveweeksi na

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
newspaperofgener alcirculationpubl
ished cooper
ati
vebasi
s;and
i
n t he muni ci
palit
y or ci ty wher e the
pri
ncipal of f
ice of t he cooper at
ive i s (5)Fai
l
uretomeettherequi
redminimum
si
tuated ori nt he absence ofsuch l ocal numberofmember
sint
hecooperat
ive.
newspaper ,in a newspaper of gener al
ci
rculat
ion int he Phi l
ippines,and a copy
shal
ll ikewise be post ed f or t
hree ( 3) ART.68.Dissol
uti
onbyFai
l
uret
oOr
gani
ze
consecutiveweeksi nt hree( 3)publi
cplaces andOperat
e.-
i
n t he muni ci
palit
y or ci ty wher e the
cooperativ
e'sofficeislocat ed. If a cooper ativ
e has not commenced
businessandi tsoper ati
onwi t
hint wo( 2)
"Uponexpi ryofthef ive( 5)daynot i
cet ofil
e yearsaf tertheissuanceofi tscerti
fi
cat eof
objections,t heAut horityshal lpr oceed to registrati
on or has not car r
ied on i ts
heart hepet i
ti
onandt r
yanyi ssuer aisedin businessf ortwo( 2)consecut iv
ey ears,the
theobj ecti
onf il
ed;andi ft heobj ectionis Author it
yshallsendaf ormalnot i
cet ot he
suffi
cientandt hemat erialall
egationsoft he saidcooper at
ivet oshow causeast oits
petit
ionar eproven, i
tshal lissueanor derto fai
luret ooperate.Failureoft hecooper ati
ve
dissolvet he cooper ativ e and di rectt he topr ompt lyprovidejustif
iabl
ecausef orits
dispositionofi tsasset si naccor dancewi th fai
luret ooperateshal lwarranttheAut horit
y
exist
ingr ulesandr egul ations.Theor derof to del etei t
s name f r
om t he roster of
dissolutionshal lsetfortht herei
n: registered cooper at
ives and shal l be
deemeddi ssolved.
(1) The asset
s and l
i
abi
l
iti
es of t
he
cooper
ati
ve; ART.69.Li
qui
dat
ionofaCooper
ati
ve.

(
2)Thecl
aim ofanycr
edi
tor
; Ev erycooper ati
v ewhosechar terexpiresby
i
tsownl i
mi tati
onorwhoseexi stenceis
(
3)Thenumberofmember
s;and terminatedbyv oluntar
ydi ssol uti
onor
throughanappr opr i
atejudicial proceeding
(
4)Thenat
ureandextendoftheint
erest
sof shallnever t
helesscont i
nuet oexi stforthr
ee
t
hemembersofthecooperat
ive. (3)yearsaf terthet i
mei ti
sdi ssol ved;notto
continuet hebusi nessforwhi chi twas
ART. 66. I nvol
untary Dissol
uti
on. A establi
shedbutf ort
hepur poseof
cooperativ
emaybedi ssol
vedbyorderofa prosecutinganddef endingsui tsbyor
compet entcour
tafterduehear i
ngont he againstit;settl
ementandcl osur eofits
groundsof : affai
rs;disposition,convey anceand
distr
ibuti
onofi t
spr operti
esandasset s.
(1) Vi
olat
ion of any l
aw,r
egul
ati
on or
prov
isi
onsofit
sbylaws;or "Atanytimedur i
ngthesai dthree(3)y ears,
thecooper at
iveisauthor i
zedand
(
2)I
nsol
vency
. empower edt oconveyal lofitspropertiesto
trust
eesf ort
hebenef itofitsmember s,
ART. 67. Di
ssol
uti
on by Or
der of t
he credit
orsandot herpersonsi ninterest.
Aut
hori
ty. From andaf t
eranysuchconv eyance,all
i
nt er
estswhicht hecooper ati
vehadi nt he
TheAut hori
tymaysuspendorrevoke,aft
er properti
esaret ermi
nat ed.
duenot iceand hear
ing,thecer
ti
ficat
eof
regist
rat
ionofacooper at
iveonanyoft he "Uponthewi ndingupoft hecooperat
ive
foll
owinggrounds: affai
rs,
anyassetdi str
ibutabl
etoany
credi
tor,shar ehol
derormemberwhoi s
(
1)Hav
ingobt
ainedi
tsr
egi
str
ati
onbyf
raud; unknownorcannotbef oundshal
lbegiven
tothefeder ationoruniont owhi
chthe
(
2)Exi
sti
ngf
orani
l
legal
pur
pose; cooperativeisaf f
il
iat
edwi th.

(3)Wi l
lf
ulv i
olat
ion,despi
tenoti
cebythe "Acooperativeshallonl
ydist
ri
buteits
Authori
ty,ofthepr ov
isi
onsofthi
sCodeor assetsorpr oper
tiesuponlawfuldi
ssolut
ion
i
tsby l
aws; andafterpay mentofalli
tsdebtsand
l
iabi
li
ties,
excepti nthecaseofdecreaseof
(
4) Wi
l
lful f
ail
ure t
o oper
ate on a sharecapitalofthecooperat
iveandas

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
ot
her
wiseal
l
owedbyt
hisCode. andunsoundbanki ngpr
actice/s3as
deter
minedbythePDI C,i
nconsul tat
ion
ART.70.Rul esandRegulat
ionson wit
htheBSP,afterduenoticeand
Liquidat
ion.TheAut
horit
yshalli
ssuet
he heari
ngandpublicati
onofPDI C’scease
appropri
ateimplementi
ngguidel
inesf
ort
he
l
iquidati
onofcooperat
ives.
" &desi stor deragai nstsuchdeposi t
account s/transact ions
ThePhi
l
ippi
neDeposi
tInsur
ance --Aredet ermi nedt obepr oceedsofan
Cor
por
ati
on unlawf ulactivit
yasdef inedi ntheAnt i
-
MoneyLaunder i
ngAct( Republ icAct
9160, asamended)
(PDIC)wasest abl
ishedonJune22, 1963by
3/Unsaf eandunsounddeposi t-
related
Republic Act3591 t o prov i
de deposi t
or
activi
tiesinclude, amongot hers:(PDIC
prot
ectionandhelpmai nt ai
nst abi
li
tyinthe
Regul atoryIssuanceNo.2011- 01)
fi
nancialsy st
em by pr ovi
ding permanent
--Deposi t-
related
andcont i
nuingdepositi nsuranceupt othe
practice/activit
y/ t
ransact ionwi t
houtt he
maximum deposi tinsurance cov erage of
approv alor
P500,000.001, per deposi t
or , per bank.
adequat econt r
ol srequiredunderexi sti
ng
coverage ofP500, 000.001,perdeposi tor,
l
aws, rul
esandr egul ati
ons
perbank.
--Fail
ur etokeepbankr ecor dswi thinbank
premi ses
Whatarecov eredbyPDI Cdeposi t
--Grant i
nghi ghi nterestrat es,whenbank
i
nsurance?
has:(i)negat iveuni mpai red
PDICinsuresv aliddepositsindomest ic
capital,or(ii
)l i
quidasset st odeposi trati
o
off
ices
l
esst han10%
ofi
tsmemberbanks.
--Non- compl iancewi t
hPDI Cr egulations
ByDeposi tTy pe:
•Sav ings
Maxi mum Deposi tInsuranceCov er
age
•Speci al Savings
(MDI C)
•Demand/Checki ng
PDI Cshal l
paydeposi ti
nsur anceonal lvali
d
•Negot iableOrderofWi thdrawal
deposi t
supt ot heMaxi mum Deposi t
(NOW)
Insur ance
•Cer tif
icat eofTimeDeposi ts
Cov erageofPhp500, 000, perdepositor,ofa
ByDeposi tAccount :
closedbank.Account smai ntainedinthe
•Singl eAccount
same
•JointAccount
rightandcapaci tyforadeposi tor’
sbenef i
t,
•Account“ By”,“
InTrustFor”( I
TF)or
whet herinhisownnameori nthenameof
“Fort heAccountof ”(FAO)anot her
ot hers,arecov eredbydeposi tinsurance.
person
Deposi tsareconsi deredv ali
dupont he
ByCurrency:
det ermi nati
onbyt hePDI C,basedonbank
•Philippi nepeso
recor ds, t
hatthedeposi tswer emadewi tha
•For eigncur renci
esconsi deredas
cor respondingi nfl
owofcash.
part
ofBSP’ sinter
nationalr
eser ves

Whatar
eNOTcov
eredbyPDI
Cdeposi
t
i
nsur
ance?

Thef oll
owi ng,whet herdenomi nat
ed,
document ed,recordedorbookedasdeposi t
bythebank, areexcl udedfrom PDICdeposit
i
nsur ance( Secti
on4( f)ofthePDICChar ter
):
•Investmentpr oductssuchas
bondsand
securiti
es, t
rustaccount sandot hersimil
ar
i
nstrument s
•Deposi taccount sortransacti
ons
that:
--Areunf unded, f
ictit
iousorfraudulent
--Constit
ut eand/ oremanat efrom unsafe

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
  2.
5.Withaccountsnoteli
gibl
eforear
ly
payment,regar
dlessoftypeof
accountandaccountbalanceper
1.WHENARECLAI
MSFI
LED? advi
ceofPDI C;and 

 2.
6.Whoar
edeceasedwhosefi
li
ngof
Claimsar efil
eddur i
ngtheonsiteCl ai
ms cl
aimi
sthr
uthelegal
hei
rs.
 
Settl
ementOper ati
ons(CSO)per iod,as
announcedi ntheNot icetoDeposi t
ors 3.WHATARETHEREQUI
REMENTSI
N
publishedinnat i
onalorlocalnewspaper s, FILI
NGCLAI
MS?
orpost edinthebankpr emisesand
conspi cuousplaceswi t
hinthelocali
ty,
and  3.
1.ORIGINALEVIDENCEOFDEPOSI TS
i
nt hePDI Cwebsi te. suchassavingspassbook,cert
if
icate
ofti
medeposi t
,bankstat
ement ,used
orunusedchecks,orATM card.
 
Deposi
torswhofail
edtof
il
ethei
rcl
aims
duri
ngtheonsi
teCSOmaydosot hrough  3.
2.ONE( 1)VALI DORI GI NALPHOTO-
anyoft
heseoptions: BEARI NGI DENTI FI
CATI ON
DOCUMENT( ID)wi thclearsignat ure
ofdepositor/claimant( e.g.Driv
er ’
s
 1.
1Personal f
il
ing atthePDI CPublic License,SSS/ GSISID, SeniorCitizen’
s
AssistanceCent erlocatedatthe3rd ID,Passpor t
,PRCI D, OWWA/ OFW ID,
Floor,
SSSBl dg.,6782Ay al
aAv enue Seaman’ sID,Al i
enCer tif
icateof
cornerV.A.Ruf i
noSt r
eet,MakatiCity
, Registrat
ionID, Voter’
sI D).(I
TI S
8:00AM t o5: 00PM, Mondayt oFriday, RECOMMENDEDTOBRI NGATLEAST
exceptholiday s.
  TWO( 2)VALIDI DsI NCASEOF
DISCREPANCI ESI NSI GNATURE) .
 
 1.
2Fi
li
ngt hr
oughmai l
 
bysendi
ngaduly
accomplishedandnot
ari
zedCl
aim  3.
3.Fordepositorsbeloweighteen( 18)
Form andrequi
rement
sto:  year
sol d,photocopyofbi r
th
cert
ifi
catefrom thePhil
ippine
Deposi t
orshavet wo( 2)yearsfrom Stat
isti
csAut hori
ty(PSA)oradul y
PDIC’stakeoveroft heclosedbankt o cert
ifi
edcopyi ssuedbyt helocalci
vil
fi
letheirdepositinsur
ancecl ai
ms. regi
strar,
andv ali
dIDoft heparent.
 
Afterthetwo-yearperiod,the
depositor’
sri
ghtt oclaimf ordeposit  3.
4.Ori
ginalcopyofanot ari
zedSpecial
i
nsur anceisbarredpur suantto PowerofAt tor
ney(SPA)f orcl
aimants
Section21(e)ofR. A.3591, as whoar enotthesignator
iesinthe
amended.   bankrecords.I
nthecaseofmi nor
deposit
or,theSPAmustbeexecut ed
2.WHOAREREQUI
REDTOFI
LEDEPOSI
T bytheparent.
I
NSURANCECLAI
MS?
 3.
5.Cl
aim For
m:
Deposi
tor
s:
Whenf i
l
ingclaim duri
ngtheonsite
 2.
1.Wit
hv al
i
ddeposi
taccountswi
th CSOper iod,ordur i
ngpersonal
fil
ing
bal
ancesofmorethanP100,
000.
00;
  atthePDI CPAC, asy st
em generated
Clai
m For m shallbepri
ntedbyPDI C
 2.
2.Wit
houtst
andi
ngobligat
ionswit
ht he representat
iveafter
cl
osedbankei
therasborrower
,co- i
nterview/processing.
maker,
orasspouseofbor r
ower;
 
Whenf il
ingthroughmai l
,pl
ease
 2.
3.Withincompletemai l
ingaddress downloadt hePDI CCl ai
m Form.The
foundinthebankr ecor ds,
orfai
l
edt
o clai
mf orm needst obeaccompl ished,
updatethem throught heMAUF signed, andnot ari
zed.Depositor
s
i
ssuedbyt hePDI C;  mustensur ethatt hesignatur
eont he
Claim For missi milarwit
hthe
 2.
4.Wit
haccount
smaintai
nedundert
he signatureinthebankr ecordsandt he
nameofbusi
nessenti
ti
es;
  vali
dIDssubmi tt
ed. 

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 provisi
ons ofAMLA wer e amended
by R.A.No.9194( An ActAmendi ng
R.A.9160)effecti
ve23Mar ch2003.I
t
has al so i ssued t he Rev i
sed
4.WHOSHOULDSI
GNTHECLAI
M FORM? Implementing Rules and Regul
ati
ons
(RIRR)implementingR.A.No.9160,as
 4.
1DEPOSITORoft heaccount amended.
  
–  
fordeposi
tor18yearsol
dand
above  3. 
What are consi
der
ed unl
awf
ul
acti
vi
ti
es under the AMLA, as
 4.
2PARENT amended?
  
–  
ofdeposi
torbel
ow18y
ear
sol
d 
There are 14 unl
awfulact
ivi
ti
es or
 4.
3AGENT predi
cate crimes cover
ed by t he
  
–  
i
nthecaseof“
by”account
  AMLA. These ar e, in the order
enumeratedinthel
aw:
 4.
4TRUSTEE
 Kidnappi ngf orransom
 
 –  
inthecaseof“
InTr
ustf
or(
ITF)
”
 Drugof fenses
account 
 Graf tandcor ruptpr acti
ces
 4.
5EACHDEPOSI TOR/ACCOUNTHOLDER  Plunder
for account maintai
ned as “
Or”
,  Robber yandext ortion
“And/
Or”or“And”  Juet engandmasi ao
 Piracyont hehighseas
 
 – 
 
int
hecaseofj
ointaccount
s   Qual if
iedt heft
 Swi ndling
ABangkoSent
ral
ngPili
pinasbri
eferon  Smuggl ing
the Ant
i-
Money Laundering Act of  ElectronicCommer cecr i
mes
2001  Hijacking, dest r
uct i
ve ar son
and mur der,incl uding those
per petrated agai nst non-
1.Whati
smoneyl
aunder
ing?
combat ant per sons ( terr
ori
st
act s)
Moneyl aunderingisanactorser iesor  Se curit
iesf r
aud
combi nationofact swher ebypr oceeds  Fe l
onies or of fenses of a
of an unl awfulact i
vity,whet heri n si
mi l
arnat urepuni shableunder
cash,pr opert
y orot herasset s,ar e penal lawsofot hercount r
ies
conv er
ted,conceal edordi sgui sedt o
maket hem appeart ohav eor iginat ed
4. 
How is money l
aunder
ed t
hrough
from legitimatesour ces.Onewayof
thefi
nanci
alsy
stem?
l
aunder ing money i s t hrough t he
fi
nancialsy st
em.Republ ic Act No.
9160,ot herwi
se known as t he Ant i
- Placement  –i nv
olvesi
nit
ialplacement
Money Launder ing Act of 2001 orintroductionoft hei
ll
egalfundsinto
(AMLA) ,asamended,def inedmoney the f inancial sy st
em. Fi nanci
al
l
aunder ing as a scheme wher eby i
nstituti
ons ar e usual
l
yused att his
proceedsofan unl awf ulact i
v i
tyar e point.
transacted or at t
empt ed t o be
transacted, t hereby maki ng t hem Lay eri
ng – i nvol
ves a ser i
es of
appear t o hav e or i
ginated f rom fi
nanci alt
ransacti
onsdur ingwhichthe
l
egi t
imat esources. dirt
ymoneyi spassedt hroughaseries
ofpr ocedures,putti
ngl ay
eruponlayer
2.Whathast
hePhil
i
ppinegov er
nment ofper sonsandf i
nancialacti
vi
ti
esinto
donet
ocurbmoneylaunder
ing? the l aundering pr ocess. Ex. wire
transfers,use ofshel lcorpor
ati
ons,
etc.
Thegovernmentenact
edRepubli
cAct
(R.
A.) No. 9160 (The Anti-
Money
Launder
ingActof2001),whichtook I
ntegr
ati
on 
–themoneyisonceagai
n
eff
ecton 17 October2001.Certai
n madeavail
abl
etot
hecr
iminalwi
tht
he

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 occupationaland geographic ori
gin speci
fi
cci
rcumst
ances.
obscuredorconcealed.Thelaundered  I
trequi
rescov
eredi
nst
it
uti
ons
fundsar enowintegr
atedbackintothe to r eport cov ered and
l
egiti
mat e economy t hrough t he suspi cioust r
ansact i
onsandt o
purchase of properti
es,businesses cooper atewi tht hegov er nment
andot herinv
est
ment s. i
n pr osecut i
ng of f
ender s. It
also r equires t hem t o know
5. Why i
s Money Launder
ing a theircust omer sandt osaf ely
pr
obl
em? keep al lr ecor ds of t heir
transact ions.
Moneyl aunderingal lowscr iminalst o  Itcar riespr ovisionst opr otect
preser ve and enj oyt he proceeds of i
nnocentpar ties by pr oviding
thei
rcr i
mes,t huspr ovidingt hem wi th penal ties f or causi ng t he
the i ncent i
ves and t he means t o disclosur e t o t he publ i
c of
continuet hei
rillegalact i
vit
ies.Att he confident i
al i
nfor mat i
on
same t ime, it pr ov i
des t hem t he contai ned i nt hecov ered and
oppor tunityt o appeari n publ i
cl ike suspi cioust ransact i
ons.
l
egiti
mat e ent repreneur s. Or gani
zed  Itest ablishes pr ocedur es f or
cri
me,t hrough moneyl aunder i
ng,i s i
nt er
nat i
onalcooper ation and
known t o hav e t he capaci ty t o assist ancei nt heappr ehensi on
destabi l
ize government s and and pr osecut ion of money
under mi netheirf i
nanci alsystems.I tis l
aunder i
ngsuspect s.
thusat hreattonat ional secur i
ty.
7.WhatistheAnt
i-
MoneyLaunder
ing
6.Whatar
ethesal
i
entf
eat
uresoft
he Counci
l(AMLC)
?Whatar
eit
spowers?
l
aw?
TheAMLCi st hePhilippines’financial
 I
t cr imi nalizes money i
ntel
li
gence uni t,which i stasked t o
l
aunder ing,meani ng i tmakes i
mplementt heAMLA.I tiscomposed
moneyl aunder ingacr ime,and oftheGov ernoroft heBangkoSent ral
prov ides penal ti
es f or i ts ngPili
pinas( BSP)asChai r
man&t he
commi ssi on, i ncludi ng hef t y Commi ssioner of t he I nsurance
fi
nesandi mpr isonment . Commi ssion( IC)andt heChai rmanof
 It st ates clear ly t
he the Secur i
ties and Exchange
det ermi nat i
on of t
he Commi ssion( SEC)asmember s.The
gov ernment t o pr ev ent t he AMLCi saut horizedto:
Phi l
ippi nes f rom becomi ng a
hav en f ormoney l aunder ing,  Requi
reandr
ecei
vecov
eredor
whi leensur ingt opr eser vethe suspi cioust ransact ionr eports
i
nt egr i
tyandconf ident i
alityof from cov er edi nstitutions.
goodbankaccount s.  Issueor der st odet er minet he
 It cr eat es an Ant i-
Money true ident ityoft he ownerof
Launder ing Counci l ( AMLC) any monet aryi nstrument or
thati st asked t o ov erseet he proper tyt hati sthesubj ectofa
i
mpl ement ationoft hel aw and cov ered or suspici
ous
toactasaf inanci al i
nt elli
gence transact ion r epor t, and t o
unitt or eceive and anal y ze requestt he assi stance ofa
cov ered and suspi ci
ous foreign count ryi ft heCounci l
transact ionr epor ts. believesi tisnecessar y.
 Itest abl ishest her ul esandt he  Instit
ut eci vilforfei t
ur eandal l
admi nist rati
onpr ocessf orthe other r emedi al pr oceedings
prev ent ion, det ect ion and through t he Of f
ice of t he
prosecut ion of money SolicitorGener al.
l
aunder ingact ivit
ies.  Causet hef il
ingofcompl aints
 Itr elaxes t he bank deposi t wi t
ht heDepar tmentofJust ice
secr ecy l aws aut hor izing the or t he Ombudsman f or t he
AMLC and t he BangkoSent r al prosecut ion of money
ngPi lipinasaccesst odeposi t l
aunder ingof fenses.
and i nv est ment account si n  Invest i
gat e suspici
ous

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 transact i
ons, cov ered Commi
ssi
on(
IC)
transact i
ons deemed  Secur
it
iesdeal
ers,
broker
s,pr
e-
suspi cious,money l aunder i
ng need compani es, f oreign
activiti
es and ot herv iolations exchange corporati
ons,
oft heAMLA. i
nvestment houses, t rading
 Secur et heor deroft heCour tof advi
sers, as wel l as ot her
Appeal s t o f reeze any enti
ti
essupervi
sedorr egulated
monet ar y i
nst rument or bytheSecuri
ti
esandExchange
proper ty al l
eged t o be t he Commi ssi
on(SEC)
proceedsofunl awf ul act ivity.
 Impl ementsuchmeasur esas 9. What ar e t he Cust
omer
maybenecessar yandj ust ifi
ed I
denti
fi
cat
ion Requi
rement
s – KYC
to count er act money (KnowYourCust
omerRule)
?
l
aunder i
ng.
 Recei veandt akeact i
ononany Cov
eredi
nst
it
uti
onsshal
l
:
requestf rom f orei gncount ri
es
forassi stancei nt hei rownant i-  Est
abl
i
sh and r
ecor
dthet
rue
moneyl aunder ingoper ations. i
dentityoft heircl i
entsbased
 Dev elopeducat ionalpr ogr ams onof fi
cialdocument s.
tomaket hepubl icawar eoft he  In case ofi ndividualcl ients,
per nicious ef fect s of money maintainasy stem ofv erifyi
ng
l
aunder i
ng and how t heycan thetrueident ityoft heircl i
ents.
par ti
cipat e i n br inging t he  In case ofcor porate cl ients,
offender st othef oldoft hel aw. requir
easy stem v erifyi
ngt heir
 Enlistt he assi stance ofany l
egal existence and
branchofgov er nmentf ort he organizati
onal st ructur e, as
prev ent i
on, det ect i
on and well as t he aut hority and
i
nv est i
gat ion of money i
dentifi
cation of al l per sons
l
aunder i
ng of fenses and t he purporti
ngt oacti nt heirbehal f.
prosecut i
on of of fender s.I n  Establi
shappr opriatesy stems
thisconnect ion,t heAMLCcan and met hods based on
requi rei ntell
i
genceagenci esof i
nternationally compl i
ant
thegov ernmentt odi vulgeany standards and adequat e
i
nf ormat ion thatwi llf acilit
ate i
nternalcont r
olsf orv erifyi
ng
thewor koft heCounci l i
ngoi ng andr ecordingt het rueandf ull
aftermoneyl aunder er s. i
dentifyoft heircust omer s.
 Impose admi nist rati
ve
sanct ionsont hosewhov i
olate 10. What are t
he Recor
d-Keepi
ng
the l aw, and t he r ules, Requi
rement
s?
regul ations, or der s and
resol utions i
ssued i
n
Al
lcov
eredi
nst
it
uti
onsshal
l
:
connect ion wi th the
enf orcementoft hel aw.
 Mai
ntai
n and saf
ely st
ore al
l
recor dsofal ltheirt r
ansact i
ons
8.
 Whatar
ethecov
eredi
nst
it
uti
ons?
for f ive y ears f rom t he
transact i
ondat es;
 Banks,of
fshor
ebanki
nguni
ts,  Ens uret hatsai dr ecor ds/ f
iles
quasi-banks,trustenti
ti
es,non- cont aintheful landt ruei dent i
ty
stock sav i
ngs and l oan oft heowner sorhol dersoft he
associations, pawnshops,  and account s i nvol v
ed i n t he
allotheri nsti
tuti
ons,including cov ered transact ions and al l
theirsubsidiar
iesandaf f
ili
ates otheri denti
fi
cat iondocument s;
super vi
sedand/ orregulatedby  Unde rt
ake t he necessar y
theBangkoSent ralngPi l
ipinas adequat emeasur est oensur e
(BSP) theconf i
dentiali
tyofsuchf i
l
es;
 Insurance compani es,hol ding  Pr epare and mai ntain
compani es and al l ot her document ati
on,i n accor dance
i
nst i
tuti
ons super v
ised or wi th cl
ient i dent ifi
cat i
on
regulated by t he Insur ance requirement s, on their

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 cust omer account s, cir
cumst ances,itmay be per cei
ved
relationshi psand t ransact ions that t he cl i
ent’
s t r
ansaction is
such t hat any account , struct
uredinor dertoavoidbeingthe
relationshi port ransact ioncan subject of r eporti
ng requi
rements
be so r econst ruct ed as t o undertheAct ;
enabl et he AMLC and/ ort he
cour tst oest ablishanaudi ttr ail e.any circumstance rel
ati
ng t othe
formoneyl aunder ing; tr
ansacti
on whi ch is obser ved to
 Mai nt ain and saf ely st or e al l devi
atef r
om thepr ofi
leoft hecli
ent
recor ds ofexi st i
ng and new and/orthecl i
ent’
spastt ransacti
ons
account s and of new wit
ht hecover
edinstit
uti
on;
transact ionsf or5y ear sf rom
Oct ober17,2001orf rom t he f.t
hetransact
ionisinanywayr elat
ed
dat es of t he account s or toanunlawfulacti
vit
yoroffenseunder
transact ions, whi chev eri sl ater ; thi
sActthatisaboutt obe,isbeingor
 Anent cl osed account s, hasbeencommi t
ted;or
preser veand saf elyst or et he
recor ds on cust omer g.anyt r
ansact
ion t
hatissi
mil
aror
i
dent i
fication,accountf ilesand anal
ogoustothefor
egoi
ng.
busi ness cor respondence f or
atl east5y ear sf rom t hedat es 13. What ar e t
he r
epor
ti
ng
theywer ecl osed; requi
rement
s?
 If a money l aunder ing case
based on anyr ecor d keptby
Cov er
edi nsti
tuti
onsshal lrepor ttothe
the cov ered i nst i
tut i
on has
AMLC al lcov ered t r
ansact i
ons and
beenf i
ledi ncour t,r et ainsai d
suspicious t r
ansact i
ons wi thi
n f iv
e
fi
lesunt i
li ti sconf irmedt hat
wor ki
ngday sf r
om occur rencet hereof,
the case has been f i
nal l
y
unlesst heSuper visionAut hori
ty(the
resol vedort ermi nat edbyt he
BangkoSent ral ng Pi lipinas, t he
cour t;and
Securiti
esandExchangeCommi ssion,
 Ret ainr ecor dsasor iginal si n
or t he I nsurance Commi ssi
on)
suchf ormsasar eadmi ssi ble
prescri
bes a l onger per iod not
i
ncour t
exceedingt enwor kingday s.Shoul da
tr
ansact i
onbedet er minedt obebot ha
11.Whatar
ecov
eredt
ransact
ions? coveredt ransactionandasuspi ci
ous
tr
ansact i
on,i tshal lbe r eported as
Tr
ansacti
onincashorotherequival
ent suspicioustransact ion.
monetar
yinst
rumentsinvol
vi
ngat otal
amount in excess of P500,000.00 14.Howi
srepor
ti
ngdone?
wit
hinonebusi
nessday.
The r epor ts on cov er
ed and/ or
12.
 Whatar
esuspi
cioust
ransact
ions? suspi cious t ransact i
ons shal l be
accompl i
shed i n t he pr escribed
Transacti
ons, r egardl
ess of the format s and submi t
ted wi thinf i
ve
amounti nvolv
ed,wher ethef
oll
owi
ng businessday sf rom occur r
enceoft he
cir
cumst ances exist
: transact ionsi nasecur edmannert o
theAMLCi nel ectronicform,ei therv i
a
a.t
hereisnounderl
yi
ngl
egalort
rade disket tes,l eased l ines,or t hrough
obl
i
gation, pur
pose or economic i
nt ernetf acil
iti
es.The cor respondi ng
j
usti
fi
cati
on; har dcopyf orsuspi cioustransact ions
shallbesentt oAMLCatt he5t hFl oor
b.
thecl
i
enti
snotpr
oper
lyi
dent
if
ied; EDPC Bui lding, BangkoSent r
al ng
Pili
pinasCompl ex,Mani l
a,Phi li
ppines.
c. the amount i nv
olv
ed i s not Allpawnshopsshoul dcoor dinatewi th
commensurate wit
ht he busi
ness or theAMLCt hrut el.nos.523- 4421, 521-
fi
nanci
alcapaci
tyofthecl
ient; 5662 or 302- 3979 on r epor ti
ng
requirement s, pr ocedures and
d. t
aki
ng i
nto account al
l known deadl ines.

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 15.Ar etheresanct
ionsforfai
lureto yeari
mpri
sonmentorafi
neofnotl
ess
report cov ered or suspi ci
ous thanP100,
000.00butnotmorethan
transact
ionsandnon-compl
iancewi t
h P500,
000.
00,orbot
h.
R.A.9160,asamended?
b. Maliciousreporti
ng iscommi t
tedby
Sanct
ions/
penal
tiesshallbeimposed anyper sonwho,wi thmal i
ceori nbad
onpawnshopst hatwil
lfailt
ocomply faith,r eport
s orf il
es a compl etel
y
wit
ht heprovi
sionsofR. A.9160,as unwar ranted or f alse i nformat i
on
amended. regarding a money l aunder i
ng
transact i
onagai nstanyper son. The
16.Whatar ethesanct
ionsf
orf
ail
ure penal t
yi s 6 mont hs t o 4 y ears
to report cover
ed or suspi
cious i
mpr i
sonmentandaf i
neofnotl ess
tr
ansact
ions? thanP100, 000.00butnotmor et han
P500, 000.00. The of fender is not
Anyperson,requi
redt or
eportcov ered ent i
tl
ed t o the benef i
ts of t he
andsuspici
oust ransact
ionsf ai
ledt o Pr obati
onLaw.
dosowi l
lbesubject edt
openal tyof6
monthsto4y ear
si mpri
sonmentora c.Br
  each ofConf identi
ali
ty.
 Fort his
fi
neofnotl essthanP100, 000.00but offense,t hepenal t
yi s3 t o8y ear s
notmorethanP500, 000.
00,orbot h. i
mpr isonmentandaf ineofnotl ess
thanP500, 000.00butnotmor et han
17. Ar e t here conf i
denti
ali
ty P1 mi l
li
on.I n case t he prohi bited
restri
cti
ons on t he repor
ting of i
nf or
mat i
oni sreportedbymedi a,t he
cov er
edt r
ansacti
onand/
orsuspici
ous responsibler eport
er,wr i
ter
,pr esident ,
transacti
on? publisher,manager ,andedi t
or -
in-chi ef
arehel dcriminall
yli
able.
Whenr epor tingcov eredt ransact i
ons
or suspi ci ous t ransact ions t o t he d.Admi
  ni
strati
veof fenses. 
TheAMLC,
AMLC,cov ered i nstituti
onsand t heir aft
erdue i nvest
igat i
on,can i mpose
offi
cer sandempl oy ees,ar epr ohi bit
ed fi
nes f
rom P100,000.00 t
o
from communi cat ing, di rectly or P500,000.00 on of fi
cers and
i
ndi r
ect ly,i n any mannerorby any employeesofcov eredi nst
ituti
onsor
means,t o any per son,ent ity ,the anypersonwhov iolatesthepr ovisi
ons
medi a,t he f actt hata cov er ed or of t he AMLA, as amended, t he
suspicious t ransact ion r epor t was Implement i
ngRul esandRegul at i
ons,
made,t he cont entst her eof,orany and or ders and r esoluti
ons i ssued
otheri nf ormat ion inr elation t hereto. pursuantthereto.
Neither may such r epor t
ing be
publishedorai redi nanymanneror TheNewCent
ral
BankAct
form byt he mass medi a,el ect ronic
mai l
,orot hersi milardev i
ces.I ncase SECTI ON 1.Decl ar
ation ofPol i
cy ._
of v iolation t hereof ,t he concer ned TheSt ateshall
offi
cer ,andempl oyee,oft hecov ered mai ntainacent ralmonet ar
yaut horit
y
i
nst i
tution,or medi a shal lbe hel d thatshal lfuncti
onandoper ateasan
criminal l
yl iable. i
ndependent and account able body
corpor ate in the di scharge of i t
s
18. What ar
e the other of
fenses mandat ed responsi
bil
itiesconcer ni
ng
puni
shabl
e under the AMLA, as money ,bankingandcr edit.Inlinewi t
h
amended? thi
spol i
cy,andconsi der i
ngi t
suni que
functions and r esponsi bil
i
ties, t he
a.
 Fai
lure t o keep r ecords  i
s cent r
almonet ar
yauthor it
yest ablished
commi tt
edbyanyr esponsibl
eof ficial under t his Act , whi l
e bei ng a
orempl oyeeofacov eredinsti
tution gov ernmentownedcor porati
on,shal l
whof ail
stomai nt
ainandsaf el
yst ore enjoy f i
scal and admi nistrati
ve
al
lrecordsoftransactionsfor5y ears autonomy .
fr
om t hedatesthet ransacti
onswer e
made or when t he account s wer e SEC.52.LegalTenderPower._All
cl
osed.Thepenal t
yi s6mont hst o1 notes and coi
ns issued by the
BangkoSent
ral shall be f ull
y

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 guarant eedbyt heGov ernmentoft he At t he of f
ice of t he Int
ell
ectual
Republicoft hePhi l
ippinesandshal l Propertyint hePhili
ppines,t hereare
belegal severalcategori
eswhereinacr eat
oror
tenderi nthePhi l
ippi
nesf oralldebt s, i
nnov atorcan r egi
stert heircreati
on
bothpubl icandpr i
vate: under.Belowar esomecat egori
es:
Provided, howev er, That , unl ess
otherwisef i
xedbyt heMonet ary
Board,coi nsshal lbel egaltenderi n PATENT
amount s notexceedi ng Fi ft
y pesos
Apat entref
erstotheexclusi
ver i
ghts
(P50)f ordenomi nati
onsoft wenty-fi
ve
toapr oductorprocess,aswellasits
centavosandabov e,
i
mpr ovements—granted t hat t he
andi namount snotexceedi ngTwent y
productorpr ocessoffer
ssomet hing
pesos( P20)f or
newandusef ul.
denomi nationsoftencent av
osorl ess.

SEC.60.LegalChar acter._Checks Theinventororcreatorwit

ht hepatent
representingdemanddeposi t
sdonot hastherighttochooseast owhocan
havel egalt ender power and t heir use,sell
,orev en make somet hing
accept ancei nthepay mentofdebt s, si
milarduri
ngits2-yearval
idi
typeri
od.
bothpubl icandpr i
vat
e, i
satt heopt i
on
of t he cr edi
t : Pr
or ovided,howev er, Thr oughout t he ent i
re dur ati
on, a
Thatacheckwhi chhasbeencl eared pat ent ’
sinfor mat i
onmustbeav ail
able
and cr edited tothe accountoft he tot hepubl ic,ast heowneri sgi ven
creditor shall be equi valent to a enough t i
me t o gai n ampl e
deli
v erytot hecredit
orofcashi nan commer cialr eturns.Some exampl es
amountequalt otheamountcr edited ofi nv entionsorcr eat
ionst hatcanbe
tohisaccount . fi
ledaspat entsi ncl
udenewandusef ul
machi nes,pr oduct s and pr ocesses
SEC.51.Li abil
i
t yforNot esandCoi ns. (non- biologicalandmi cr
obiologicalin
_ Not es and coi ns i ssued by t he nat ure);i mpr ovement s ofmachi nes,
BangkoSent r
alshal lbeliabil
it
iesoft he product s and pr ocesses; and
BangkoSent r
alandmaybei ssuedonl y mi croor ganisms.
against,andinamount snotexceedi ng,
theasset soft heBangkoSent ral.Said
notesandcoi nsshal lbeaf i
rstand Thebasicr equi
rementsforacreation
paramountl ien on al lasset soft he tobeconsi deredpatent
ablearet hat
BangkoSent r
al.
The BangkoSent ral'
s thecr
eati
onwoul dhaveanov elidea,
holdingsofi tsownnot esandcoi ns i
nvent
ive,and can be appli
ed in an
shallnotbeconsi deredaspar tofi t'
s i
ndust
ri
al setti
ng.
currencyissueand,accor di
ngly,shall
notf or
m partoft heasset sorliabil
it
ies Oneneedst ofil
loutaRequestForm
oftheBangkoSent ral
. foraGrantofPhi
lippinePat
ent
,aswel
l
assubmi tdescr
ipti
onsanddr awi
ngs
ofthei
nventi
onorpr ocess.
I
NTELLECTUALPROPERTYLAW
Oncet heappl
icati
onhasbeenf i
l
ed,it
wil
lbepubl i
shedi ntheI PO Gazet
te.
Int el
lect
ualpr opertyreferstoany t
hing
Duri
ng the peri
od ofi t
s publi
cati
on,
cr eatedbysomeone,i ncludi
ngbutnot
anyone can writ
ei n orcontestthe
l
imi t
ed toi nventi
ons,l it
erar
y wor ks,
appli
cati
on.
i
t emscr eatedbyar ti
sts( e.
g.artwork
andmusi calpieces),
sy mbols,desi
gns,
i
mages,pi ctur
es,andev ennamest hat Cor
respondi
ng fi
li
ng feesamountto
ar eusedf orcommer cialpurposes. PHP3,600andPHP1, 800,f
orbi
gand
small
invent
ions,
respecti
vel
y.
Allthesecreati
onsar eprotect
ed by
the law,ensuring that t
he people Tr
ademar
k
behi
ndi taregivenduerecognit
ionor
A trademark is a t ool used to
remunerat
ionforthei
reff
ort
.
di
ff
erenti
ateser
vicesandgoodsf r
om

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
 oneanot
her.I
tcanbeintheform ofa hiswork,unauthor
izedthir
dpart
iesare
wordoragroupofwords;asign,l
ogo, prohi
bitedfrom sell
ingordistr
ibuti
ng
or symbol
.I t coul
d ev en be a the wor ks, especi al
l
y f or trade
combi
nati
onofthoseabove. purposes.

Essent
ialinmar ketingy ourproduct
s Applicat
ionProcess
or ser
v i
ces,a t rademar k wil
lhelp One needst of il
loutan appl
i
cat i
on
consumersident
ifyy ourbrandamong for
m,at tachacopyofthei
rwor k,and
the many other
si nt he market.To payt hebasicfi
li
ngfeeofPHP625at
prot
ectyourbusiness’t r
ademark,iti
s theIPO.
advi
sabletohaveitregister
ed.
TheMadr
idPr
otocol
Thisway ,theowneroft hetr
ademark
wouldhav eexclusi
ver i
ghtstomake TheMadr idProtocolisanint ernational
useoft hemark.Furthermor
e,itwil
l treat y,all
owing tr
ademar kr egistrati
on
ensurethatnooneel secanuset he i
nt he Phi li
ppines oranycount ry—as
sameorev enasimil
armar kforthe l
ong ast heyar epar toft heMadr i
d
products or servi
ces of a simil
ar Pr otocol.
nature. Onewoul donl yneedt ofileasi ngl
e
appl icati
on.Shoul dyourappl icati
onbe
ratifi
ed,t he appr oved mar k wi l
lbe
Appl
i
cat
ionPr
ocess prot ectedi nallthecount r
iest hatare
par toft heMadr i
dPr otocol
.
Similartoapat ent,youneedt o 
apply
orf i
lef ortheexcl usiv
er i
ghtsoft he
mar k you wish to use f orbusi ness Byaccedi ng tot heMadr id Pr
otocol,
purposes.Ast her i
ghtstoamar kar e tr
ademar k owner si nt he Phil
i
ppines
grantedt ot hef i
rstpersonwhof i
led wouldhav ebet terplatformst osecure
witht heIPO,i tisimperat i
vethatone prot
ectionfort hei rrespectivemar ks.
woul d conducta sear ch wi t
hint he TheMadr i
dPr otocolof fersasi mple
IPO’sDat abaset oav oi
dr edundancies and cost -
effective sol uti
on t hat
i
nappl i
cati
ons. promotes transpar ency and enabl es
Forf il
ingpur poses,oneneedst of i
l
l entr
epreneurst osecur et heirmarksin
outt heTr ademar kAppl icati
onFor m, afasterandeasi ermanner .
as wel las at t
ach a dr awing oft he
mar k. Cor responding f il
ing f ees Moreov er
,itencour ages opening up
amountt oPHP2, 160andPHP1, 080, businesses i
n mul t
iple countr
ies,as
forbigandsmal lmarks,respectiv
ely. onecandesi gnatethecount r
ieswher e
thei
rmar ks would need pr otect
ion.
Copy
right Witht heMadr i
dPr otocol,compani es
canwi dentheirmarketsegmentwhi l
e
A copy ri
ghtr efer
st othe protect
ion keepingthei
rinter
estsincheck.
gi
v ent otheownerofanor i
ginalwork
cov er
ing l i
terary wor ks, musical With gl obal
ization, gaps bet ween
pi
eces, pai nti
ngs, and comput er countri
es are now br idged easi
ly.
programs, amongot her
s. Businesspeople can now par take i
n
busi
ness deal ings around the worl
d
Underthecopy r
ightl
aws,theownerof wit
hout hav ing t o wor ry about
the or i
ginal wor k is ent itl
ed t o i
nfri
ngementofi nfor
mat i
on.
economicr ight
s and mor alr ights.
Economicr ightsenablethecr eatorto Withthehelpofal
ltheseint
ell
ect
ual
recei
vepr ofitgainsshouldhi swor ks proper
ty laws, inf
ormati
on now
bedi st
ri
butedbyt hi
rdpar t
ies.Mor al becomesaboontosociet
y.
ri
ghts,ont heot herhand,pr otectthe
connecti
on bet ween the cr
eat orand
hiswork.  

Oncet
heownerr
ecei
vest
her
ight
sto

Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com
Sour
ce:
www.pdi
c.gov.ph
www.money l
aunder
ingbul
l
eti
n.com