ARTICLES OF COOPERATION

1. Article II - Type and Purpose(s)

That the type of this cooperative is _MULTIPURPOSE__ and the purpose(s) for which this
Cooperative is organized are to engage in: _______CREDIT /CONSUMERS______
2. Article V - Term of Existence
That the term for which this Cooperative shall exist is ____50___ years from the date of its
registration with the Cooperative Development Authority.
3. Article VI - Common Bond and Field of Membership
That the common bond of membership of this Cooperative is _____institutional____ and, shall
be open to all natural persons who are all Filipino citizen, of legal age, heads of the families and
are existing, resigned or retired but not terminated employees of House of David Group
Companies and are resident within the rea of operation, with the capacity to contract and
possess all the qualifications and none of the disqualifications provided for in the By-laws and
this Articles of Cooperation.
4. Article VII - Area of Operation
That the membership of this Cooperative shall come from __Employee of House of David
Companies_. Its principal office shall be located at _Dolores, City of San Fernando, Pampanga__.
5. ARTICLE X - Capitalization
That the Authorized Share Capital of this Cooperative is Eleven million_ Pesos
(Php11,000,000,000 ), divided into 110,000_ (000) shares with a par value of One Hundred
Pesos (Php100.00_) per share
6. ARTICLE XI - Subscribed and Paid-up Share Capital
That of the authorized share capital, the amount of _11,000,000.00___ Pesos (Php000,000) has
been subscribed and _11,000,000.00_ (P000,00 )has been paid by the following members-
subscribers:

Names # of Subscribed Amount of Subscribed # of PU Shares Amount of PU

1.
2.
3.
4.
5.
6.
7.
TOTAL FULLY SUBSCRIBED-P11,000,000.00 SHARES-110,000
BYLAWS

1. Article II - Membership
Section 1. Membership. This Cooperative shall have ___REGULAR___ members.
Section 2. Qualification for Membership - The membership of this Cooperative is open to all
natural persons, Filipino citizen, of legal age, with capacity to contract and, within the
common bond and field of membership described as follows:
_EMPLOYED AND RESIGNED OR RETIRED EMPLOYEES WITH GOOD STATUS BUT NOT
TERMINATED_______.
2. Section 4. Application for Membership. An applicant for membership shall file a duly
accomplished form to the Board of Directors who shall act upon the application within
___THIRTY______ (__30___) days from the date of filing. The Board of Directors shall devise
a form for the purpose which shall, aside from the personal data of the applicant, include
the duties of a member to participate in all programs including but not limited to capital
build-up and savings mobilization of the Cooperative and, such other information as may be
deemed necessary.
The application form for membership shall include an undertaking to uphold the By-
laws, policies, guidelines, rules and regulations promulgated by the Board of Directors and
the general assembly. No application for membership shall be given due course if not
accompanied with a membership fee of_ONE HUNDRED__ (Php 100.00_____), which shall
be refunded to the applicant in case of rejection.
3. Section 5. Appeal. An applicant whose application was denied by the Board of Directors
may appeal to the Appeal and Grievance Committee or the general assembly by giving
notice to the Secretary of the Cooperative within thirty (30) days upon receipt of the
decision.

Section 6. Minimum Share Capital Requirement. An applicant for membership shall

subscribe at least ___TWO___________ (_2___) shares and pay the value of at least
____TWO____ (__2_) shares upon approval of his/her membership.
However, no member shall own or hold more than ten percent (10%) of the total
subscribed share capital of the Cooperative.
4. ARTICLE III – Administration
Section 8. Quorum for General Assembly Meeting. During regular or special general
assembly meeting, at least _FIFTY__ percent (____50___%) of the total number of members
entitled to vote shall constitute a quorum.
5. ARTICLE VII - Capital Structure
Section 2. Continuous Capital Build-Up. Every member shall have invested in any or all of the
following:
a. At least _____TWO_HUNDRED______Pesos (P__200.00_______) per month;
b. At least ___ONE__ percent (_1_%) of his/her annual interest on capital and patronage
refund; and
c. At least ____one_____ percent (_1_%) of each good procured /service acquired from the
cooperative.
6. ARTICLE IX - Allocation and Distribution of Net Surplus
Section 1. Allocation - At the end of its fiscal year, the Cooperative shall allocate and
distribute its net surplus as follows:
a. Reserve Fund. __TEN_____percent (__10__%) shall be set aside for Reserve Fund subject
to the following rules, provided, that in the first five (5) years of operation after registration,
this amount shall not be less than fifty per centum (50%) of the net surplus:
b. Education and Training Fund. ____5
FIVE____ percent (__5__%) shall be set aside for Education and Training Fund.
c. Community Development Fund. ____THREE____percent (__3__%) shall be used for
projects and activities that will benefit the community where the cooperative operates.
d. Optional Fund. ____SEVEN____percent (__7__%) shall be set aside for Optional Fund for
land and building, and any other necessary fund.