"ART. 55. Probative Value of Certified Copies of Entries.

– (1) A copy of any entry in any book, register or list

regularly kept in the course of business in the possession of a cooperative shall, if duly certified in accordance
with the rules of evidence, be admissible as evidence of the existence of entry and prima facie evidence of the
matters and transactions therein recorded.
"(2) No person or a cooperative is possession of the books of such cooperative shall, in any legal proceedings
to which the cooperative is not a party, be compelled to produce any of the books of the cooperative, the
contents of which can be proved and the matters, transactions and accounts therein recorded, unless by order
of a competent court.
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Explanation:
In summary, ART. 55 allows certified copies of entries from cooperative records to be used as evidence in legal
proceedings, making it easier for cooperatives to present their business records in court while ensuring their
accuracy and authenticity.
"(2) In summary, this provision establishes a safeguard for the privacy and confidentiality of a cooperative's
records. While these records may be subject to disclosure in legal proceedings involving the cooperative itself,
they cannot be forced to be produced in unrelated legal cases unless a court deems it necessary. This helps
strike a balance between privacy rights and legal transparency.
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"ART. 56. Bonding of Accountable Officers. – Every director, officer, and employee handling funds, securities or
property on behalf of any cooperative shall be covered by a surety bond to be issued for a duly registered
insurance or bonding company for the faithful performance of their respective duties and obligations. The
board of directors shall determine the adequacy of such bonds.
"Upon the filing of the application for registration of a cooperative, the bonds of the accountable officers shall
be required by the Authority. Such bonds shall be renewed manually and the Authority shall accordingly be
informed of such renewal.
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Explanation:
ART. 56 is a rule that says anyone in a cooperative who deals with money, assets, or valuable items must have
an insurance bond. This bond is like a promise made by the cooperative's employees to do their jobs honestly
and responsibly. It's a way to make sure people don't misuse the cooperative's resources. The board of
directors decides how much insurance is needed to make sure everything is protected.
When you want to start a cooperative, the people in charge of handling money and assets need to get
insurance bonds to show they'll do their jobs correctly. These bonds need to be submitted when you apply to
register the cooperative. You have to update or renew these bonds by hand, and you need to tell the Authority
when you do it. This is to make sure the cooperative's officers are always covered by insurance for their
responsibilities.
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"ART. 62. Privileges of Cooperatives. – Cooperatives registered under this Code, not with standing the
provisions of any law to the contrary, be also accorded the following privileges:
"(1) Cooperatives shall enjoy the privilege of depositing their sealed cash boxes or containers, documents or
any valuable papers in the safes of the municipal or city treasurers and other government offices free of
charge, and the custodian of such articles shall issue a receipt acknowledging the articles received duly
witnessed by another person;
"(2) Cooperatives organized among government employees, notwithstanding any law or regulation to the
contrary, shall enjoy the free use of any available space in their agency, whether owned or rented by the
Government;
"(3) Cooperatives rendering special types of services and facilities such as cold storage, ice plant, electricity,
transportation, and similar services and facilities shall secure a franchise therefore, and such cooperatives shall
open their membership to all persons qualified in their areas of operation;
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Explanation:
1.) In essence, this privilege helps cooperatives safeguard their valuable assets and records without incurring
any costs. The issuance of a receipt with a witness ensures that there's a clear record of what was stored and
where, enhancing security and accountability.

2.) In simple terms, government employee cooperatives get the advantage of using available space within their
government workplace without any extra costs, and this privilege takes precedence over other rules or
regulations that might otherwise apply. This is meant to facilitate their cooperative activities and promote
cooperation among government employees.
3.) In summary, this provision stipulates that cooperatives providing specialized services or facilities must
obtain a franchise to operate legally and that their membership should be open to anyone who qualifies in
their area of operation. This helps regulate these specialized cooperatives while ensuring that their services are
accessible to those who need them.

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"ART. 67. Dissolution by Order of the Authority. – The Authority may suspend or revoke, after due notice and
hearing, the certificate of registration of a cooperative on any of the following grounds:
"(1) Having obtained its registration by fraud;
"(2) Existing for an illegal purpose;
"(3) Willful violation, despite notice by the Authority, of the provisions of this Code or its bylaws;
"(4) Willful failure to operate on a cooperative basis; and
"(5) Failure to meet the required minimum number of members in the cooperative.