FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
'10 
OEC -6 P 4 :29 
SENATE 
s,No,~621 
It ",' ,,-I; d_~ HY:C~. ___ _ 
''v 
Introduced by Senator JUAN MIGUEL F, ZUBIRI 
Explanatory Note 
With the passage of the Philippine Cooperative Code of 2008 or RA 9!520, a lot 
of changes are expected to happen in the cooperative sector. With these changes, the 
Cooperative Development Authority (CDA) should be responsive enough to the sector, 
Unfortunately, the current charter of CDA under Republic Act No, 6939 could no longer 
meet such challenges. Thus, it is imperative that the charter of CDA must be amended 
as well and be attuned to the changes and amendments in the Philippine Cooperative 
Code, 
Among the significant changes that this bill envisions for the CDA Charter are the 
following: 
1, The bill clearly defines the regulatory and supervisory powers of the agency; 
2, It also defines its developmental functions; 
3, It also provides for the adjudicatory powers of the CDA over intra and inter-
cooperative conflicts and disputes which were not settled before the VOluntary 
arbitration and mediation bodies; 
4, It amends the composition of the CDA Board from the current geographical 
representation to representation by the different types of cooperatives, and an 
additional four ex-officio members from government agencies; 
5. It creates a Regional Cooperative and Adjudication Boards; and 
6. It places the CDA under the Office of the President. 
With the foregoing amendments to the CDA Charter, it is expected that the 
Authority will be more responsive and relevant to the cooperative sector. 
, 
Hence, approval of this bill is earnestly sought. 
/ 
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U~I6t1€i. F. ZUBIRI 


FIFTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
) 
'10 
!lEC -6 P 4 :29 
SENATE 
S. No. 2621 
, 
Introduced by Sen. JUAN MIGUEL F. ZUBIRI 
AN ACT 
TO RESTRUCTURE AND STRENGTHEN THE COOPERATIVE DEVELOPMENT 
AUTHORITY, REPEALING FOR THIS PURPOSE REPUBLIC ACT NO. 6939, 
OTHERWISE KNOWN AS THE CHARTER OF THE COOPERATIVE DEVELOPMENT 
AUTHORITY, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. Title. - This Act shall be known as the "The New Cooperative 
2 
Oevelopm(Jnt Authority (COA) Charier." 
3 
4 
SEC. 2. Declaration of Policy. - It is hereby, declared the policy of the State to 
5 
promote the viability and growth of cooperatives as a potent vehicle for promoting 
6 
equity, social justice and economic development. Towards this end, the Slate shall 
7 
maintain an Authority that shall function and operate as a central policy, developmental. 
8 
and regulatory governmental body in the discharge of its mandated responsibilities 
9 
concerning cooperatives. 
10 
11 
SEC. 3. The Cooperative Development Authority. -
The Cooperative 
12 
Development Authority created under Republic Act No. 6939, herein referred to as the 
13 
Authority, is hereby restructured to carry out the provisions of this Act and those of 
14 
Republic Act No. 9520, the Philippine Cooperative Code of 2008. 
15 
16 
The Authority shall have its principal place of business in Metro Manila, and may 
17 
maintain offices, and branches in·· such other places as the proper conduct of its 
18 
business may require. The Authority shall be an agency attached to the Office of the 
19 
President. 
20 
1 


SEG. 4. Powers and Functions of the Authority. -
The Authority, after 
2 
consultation with the cooperative sector, shall formulate and implement the necessary 
3 
policies to further strengthen the cooperative sector. It shall likewise issue the 
4 
necessary rules and regulations for the sound operations of all types of cooperatives, 
5 
federations and/or unions in accordance with the provisions of RA 9520 and other 
6 
pertinent laws. It shall have the following powers and,functions: 
7 
8 
I. Re'9ulation and Supervision -
9 
10 
(a) Exercise the sole power to register all types and categories of cooperatives, 
11 
transfer all or substantially all of the cooperative's assets and liabilities in case of 
12 
dissolution and liquidation of cooperatives as provided under Chapter VII of RA 9520, 
·13 
and such other matters as may be required by the Authority. 
14 
(b) Provide appropriate implementing rules and regulations, in consultation with 
15 
the sector and other pertinent government agencies dealing with the different types of 
16 
cooperatives, regarding inspection and audit of cooperatives, federations and unions, 
17 
including their branches, subsidiaries and affiliates engaged in allied activities. 
18 
(c) Regulate and, together with relevant government agencies, have supervision 
19 
over inspection and audit of cooperatives, federations and unions, including their 
20 
branches, subsidiaries and affiliates engaged in allied activities. Provided, however, 
21 
that the Authority may delegate such power to an accredited cooperative federation 
22 
and/or union on conditions and guidelines as may be prescribed by the Board. 
23 
24 
(d) Suspend or revoke the certificate of registration of a cooperative not compliant 
25 
with the provisions of R.A. 9520 and other pertinent laws, after due process and 
26 
formally notifying the cooperative of its non-compliance. 
27 
28 
(e) Establish the necessary standards, rules and regulations on cooperative 
29 
governance, managernent and financial performance, in consultation with the sector 
30 
and other relevant government agencies and the sector, in order to monitor and 
31 
evaluate the cooperative'S performance. The Authority shall also set the standards for 
32 
the training and education undertaken by accredited cooperative federations or unions 
33 
for their cooperative members. 
34 
35 
The heads and the inspectors of the supervising and/or examining department of 
36 
the Authority are hereby authorized to administer oaths to any director, officer, or 
37 
employee of any institution under their respective supervision or subject to their 
38 
examination and to compel the presentation of all books, documents, papers or records 
2 


1 
necessary, in their judgment, to ascertain the true condition of the concerned 
2 
cooperative as well as the books a~d records of persons and entities relative to or in 
3 
connection with the operations, activities or transactions of the institution under 
4 
inspection, subject to the provisions of existing laws protecting or safeguarding the 
5 
secrecy or confidentiality of deposits as well as investments of private persons, natural 
6 
or juridical, and in debt instruments issued by the Government. 
7 
8 
(f) Authorized to request from government offices and instrumentalities, including 
9 
local government units, or government-owned or -controlled corporations, any data 
10 
which it may require for the proper discharge of its functions and responsibilities. 
11 
12 
The Authority, through the Executive Director or, in his/her absence, a duly 
13 
authorized representative shall have, upon approval by the Board, the power to issue a 
14 
subpoena and subpoena duces tecum for the production of the books and records of 
J 5 
any cooperative. Those who refuse to supply the information or data requested or 
16 
required, shall be subject to punishment for contempt in accordance with the pmvisions 
J 7 
of the Rules of Court. 
18 
19 
Data or information gathered from individual cooperatives, federations or unions, 
20 
shall be held in the strictest confidentiality by the Authority and shall not be made 
21 
available to any person or entity outside of the A(:Jthority, whether public 01· private, 
22 
except under order of a court of law or under such conditions as may be prescribed by 
23 
the Board: Provided, however, That aggregate or collective data on cooperatives may 
24 
be released to interested parties or entities. 
25 
26 
(g) Require all cooperatives, federations and unions to submit their annual financial 
27 
statements, duly audited by certified public accountants, and general information 
28 
sheets. 
29 
30 
(h) Issue Certificate of Good Standing to cooperatives compliant to RA tl520 and 
31 
other related laws governing cooperatives. 
32 
33 
0) Require all Board of Directors and officers of cooperatives to undergo 
34 
cooperative governance and risk management courses to be conducted by any group 
35 
or institution authorized or accredited by the Authority. 
36 
3 


1 
(k) Periodically assess the required paid-up share capital of cooperatives and may 
2 
increase it every five (5) years when necessary upon consultation with the cooperative 
3 
sector and the National Economic and Development Authority (NEDA). 
4 
5 
(I) Determine types of cooperatives aside from those enumerated under R.A. 9520. 
6 
7 
II. Dovelopmental -
8 
9 
(a) Act as conduit of government funds to cooperatives. The Authority shall issue 
10 
implementing rules and guidelines relative to this. 
11 
12 
13 
14 
15 
16 
17 
18 
19 
20 
21 
22 
23 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
34 
35 
36 
37 
38 
(b) Act as the sole coordinative body for all planning and execution of government 
projects and programs geared towards cooperative development, viability and 
, 
sustainability. Monitor cooperative projects and programs funded and/or implemented 
by international organizations that are coursed through the Philippine govemment. 
(c) Coordinate or liaise with other relevant government agencies and cooperative 
federations to provide the necessary technical assistance to cooperatives in the 
preparation of technical and project proposals, feasibility studies and similar 
undertakings needed to upgrade the cooperative's operations. 
(d) Link cooperatives with qualified federations/or unions and other appropriate 
government agencies, to provide needed capability-building assistance. 
III. Adjudication -
(a) Mediate, conciliate or adjudicate disputes within a cooperative or between 
cooperatives, upon the request of either or both, parties: Provided, however, That 
before any party can validly file a complaint with the Authority for voluntary arbitration, it 
must first secure a certificate of non-resolution from its conciliation and mediation 
committee, and for cooperatives which are members of any federation or union, the 
Authority only takes cognizance of their case when there is a certificate of non-
resolution from the federation or union to which it is affiliated: Provided, further; That the 
provisions of Article 137 of Chapter 18 of R.A. 9520 are strictly adhered to. 
(b) Impose penalties and fines, after due process, on all cooperatives which are not 
compliant to the provisions of RA 9520. 
4 


1 
(c) Investigate cooperative directors, officers ahd employees who have willfully 
2 
violated provisions of R.A. 9520 and other pertinent cooperative laws. The said 
3 
investigation shall be in close coordination with the present directors and officers of the 
4 
subject cooperative. 
5 
6 
(d) Order the cancellation, after due notice ·and hearing, of a cooperative's 
7 
certificate of registration for non-compliance with administrative requirements as 
8 
provided for in this Act and R.A. 9520 and in cases of voluntary dissolution. 
9 
10 
(e) Accredit a list of voluntary arbitrators whose jurisdiction shall be exclusive and 
11 
original and their decisions shall be appealable to the Office of the President. The 
12 
Authority shall issue and adopt the proper rules of procedure goveming arbitration as 
13 
the primary and exclusive mode for dispute resolution in accordance with R.A. 9285 or 
14 
the Alternative Dispute Resolution Act of 2004. 
15 
16 
SEC. 5. Organizational Structure. - The Authority shall consist of the following 
17 
units: 
18 
19 
(a) Board of Directors - A collegial body composed of the Chairperson and six (6) 
20 
regular directors and four (4) ex-officio directors. 
The members of the Board of 
21 
Directors shall be appointed by the Office of the President, one per the following 
22 
sectors based on the Types of Cooperatives under R.A. 9520, and from among their 
23 
respective nominees: 
24 
25 
26 
27 
28 
29 
30 
31 
32 
33 
1 ) 
2) 
3) 
4) 
5) 
6) 
, 
Credit and Financial Services Cooperatives 
Cooperative Banks and Insurance Cooperatives 
" 
Producers and Consumers -
covering Farmers, Agriculture, Agrarian 
Reform, Dairy and Marketing Cooperatives 
Advocacy and Training including Education Cooperatives 
Electric Cooperatives 
Service Coops -
covering 
Housing, Transportation, Health Services, 
Water Services 
34 
The four (4) other Board Directors shall be the Deputy Director General of the 
35 
National Economic Development Authority (NEDA) and an Undersecretary each of the 
36 
Department of Finance (DO F), Department of Agriculture (DA), and the Department of 
37 
Trade and Industry (DTI). 
38 
5 


(b) Executive Director - shall act as the Chief Executive Officer of the Authority; and 
2 
3 
(c) Staff Services - The Staff Services of the Authority shall be as follows: 
4 
5 
6 
7 
8 
9 
10 
11 
12 
13 
1 ) 
2) 
3) 
4) 
5) 
6) 
7) 
Administrative 
Finance 
Planning 
Institutional Development with Special Sections for Financial Service and 
Credit Cooperatives, Public Service Cooperatives, Agri- Cooperatives 
Supervision and Exam'ination 
Legal 
Registration 
14 
(d) Regional and Field Officers - The Authority shall establish, operate and maintain 
15 
regional offices as may be necessary, headed by regional directors who shall implement 
, 
16 
the policies and programs of the Authority in their respective regions. 
17 
18 
SEC. 6. The Terms of the Board of Directors. -
The Board of Directors from 
, 
19 
the cooperative sector shall serve for a term of six (6) years without reappointment. Any 
20 
vacancy in the Board shall be filled by appointment by the President in accordance with 
21 
the provisions of the preceding Section: Provided, 'That a member so appointed shall 
22 
serve only for the unexpired term. 
23 
24 
SEC. 7. Powers and Functions of the Board. - The Board of Directors as the 
25 
policy making body shall have the following powers and functions: 
26 
27 
(a) Formulate policies, rules and regulations necessary in the operations of the 
28 
Authority and, in consultation with the sector, promulgate policies, rules and regulations 
29 
necessary for the sector: Provided, however, That such policies, rules and regulations 
30 
are consi8tent with the provisions of RA 9520. 
31 
32 
(b) Set the strategic directions and plans of the Authority. 
33 
34 
(c) Formulate the organizational structure and staffing pattem of the Authority 
35 
based on the provisions of this Act and consistent with Civil Service Code and 
36 
Department of Budget and Management Rules and Regulations. 
37 
6 


(d) Establish a human resource management committee that shall govern the 
2 
selection, hiring, appointment, transfer, promotion, or dismissal of all personnel of the 
3 
Authority consistent with the Civil Service Code and Philippine labor policies. Such 
4 
system shall establish professionalism and excellence at all levels of the Authority in 
5 
accordance with sound principles and management; 
6 
7 
8 
9 
10 
(e) Adopt and submit to the appropriate government agency, through the Office 
• 
of the President, the Authority's proposed annual budget for inclusion to the General 
Appropriations Act (GM). 
11 
(f) See to it that cases or disputes filed with or referred to the Authority are acted 
12 
upon without undue delay; and 
13 
14 
(g) Perform such other functions as may be required by law. 
15 
16 
The members of the Board of Directors shall be provided with reasonable 
17 
honoraria, representation and travel expenses in the discharge of their duties. 
18 
19 
SEC. 8. Qualifications of Members of the Board. -
No person shall be 
20 
appointed Chair or member of the Board of Directors unless he/she possesses the 
21 
following qualifications: 
22 
23 
(a) A natural-born Filipino citizen of legal age; 
24 
25 
(b) Must not be more than 60 years old at the time of the appointment and must 
26 
be in good health; 
27 
28 
(c) Must have a Bachelor's Degree in cooperatives, economics, finance, 
29 
agriculture, fisheries, veterinary medicine, business, social science, law, management, 
30 
or in similar fields of study and five (5) years of experience as an official or officer of a 
31 
cooperative, government agency, or non-government organization engaged in 
32 
cooperative development; 
33 
34 
(d) Must be a member of the cooperative sector he/she represents for at least 
35 
two (2) years; and 
36 
37 
(e) Must be endorsed by a reputable federation and/or union of cooperatives 
38 
operating in good standing under the provisions of this Act and RA 9520. 
7 


2 
Any person appointed as Chairperson or regular member of the Board of 
3 
Directors shall divest himself of any direct or indirect pecuniary interest in or dealings 
4 
with cooperatives upon his/her appointment and if an officer of the cooperative prior to 
S 
appointment as Chairperson or regular member of the Board shall relinquish his/her 
6 
post in the cooperative. 
7 
8 
SEC:. 9. Removal of the Board of Directors. - The President may remove any 
9 
member of the Board for any of the following reasons: 
10 
11 
(a) If the member is subsequently disqualified under the provisions 01 this Act 
12 
and appropriate provisions of RA 9520; 
13 
14 
(b) If he/she is physically or mentally incapacitated that he/she cannot properly 
15 
discharge the duties and responsibilities of her/his position and such incapacity has 
16 
lasted for more than six (6) months; and 
17 
18 
(c) If the member is guilty of acts or omissions which are fraudulent or illegal in 
19 
character or which are manifestly opposed to the ai!TIs, objectives and interests of the 
20 
Authority. 
21 
22 
SEC:. 10. Meetings of the Board. - The Board of Directors shall meet at least 
, 
23 
once a month for the transaction of its regular business. Special meetings may be 
24 
called by the Chairperson or majority of the members to consider specific matters. A 
25 
majority vote by the entire Board shall be required for a decision. All meetings of the 
26 
Board may be held at the office in Metro Manila or at any other place as may be 
27 
determined by the Board. 
28 
29 
SEC: 11. Cooperative Adjudication Board. - Regional Cooperative Adjudication 
30 
Boards (RCAB) are hereby created under the superviSion of the Board of Directors. It 
31 
shall establish 2 RCABs for Luzon; 1 for Visayas; and 2 for Mindanao. The RCAB shall 
32 
be composed of a Chairman and two (2) members all of whom are members of the 
33 
Integrated Bar of the Philippines with at least 3 years law practice. 
34 
3S 
Notwithstanding Article 137 of RA 9520, the RCAB shall have jurisdiction over all 
36 
cooperative cases falling under their respective territorial jurisdictions only upon receipt 
37 
of a Certificate of Non-Resolution issued by the Mediation and Conciliation Committee 
38 
of the cooperative concerned and/or Certificate of Non-Resolution issued by the 
8 


1 
Federation and/or Union to which the cooperative belongs. 
2 
3 
SEC:. 12. Functions of the Regional Cooperative Adjudication Board. - In aid 
4 
of their ad.iudicative functions, the RCAB may exercise any or all of the followin!r 
5 
6 
(a) Order the conduct of an operational and financial audit of the cooperative 
7 
involved in a pending case; 
8 
9 
(b) Evaluate and award damages, including attorney's fees; 
10 
11 
(c) Require the attendance of witnesses, and/or production of pertinent 
12 
cooperative records and/or documents through the issuance of subpoenas; 
13 
14 
(d) Enlist the aid and support of and/or deputize any law enforcement officer in 
15 
the implementation and enforcement of decisions, orders or resolutions; and 
16 
17 
. (e) Punish any person, officers and/or members of a cooperative for acts 
18 
constituting direct or indirect contempt. 
19 
20 
Decisions, orders and resolutions of the RCAB shall be appealable to the Board 
21 
of Directors, sitting en banc, within fifteen (15) cale~dar days from receipt thereof. The 
22 
decisions, orders and resolutions of the Board of Directors, sitting en banc, shall be 
23 
appealable to the Office of the President within fifteen (15) calendar days from receipt 
24 
thereof. The Office of the President shall decide on the appeal within forty five (45) 
25 
calendar days from receipt thereof otherwise the appeal shall be considered denied. 
26 
The appellant may then bring the case to the proper court. 
27 
28 
SEC. 13. The Secretariat. - The Board shall appoint its secretary and such 
29 
other personnel necessary to enable it to perform its duties and functions. 
30 
31 
SEC. 14. The Chairperson. - The President shall appoint the Chairperson of the 
32 
Board with a fixed term of six (6) years without reaRPointment. The Chairperson of the 
33 
Board shall have the rank and privileges of a department undersecretary. 
34 
35 
SEG. 15. Powers and Functions of the Chair. -
The Chairperson of the 
36 
Authority shall have the following powers and functions: 
37 
38 
(a) Preside over the meetings of the Board of Directors; 
9 


2 
(b) Report to the PresidEilnt of the Philippines the performance and 
3 
accomplishment reports of the Authority on a periodic basis; 
4 
5 
(c) Represent the Authority in all undertakings where its presence is required; 
6 
and 
7 
8 
(d) Perform such other functions as may be required by law. 
9 
10 
SEC. 16. The Executive Director. - The Board of Directors shall submit to the 
11 
President its list of at least three (3) recommendees for appointment to the position of 
12 
Executive Director of the Authority based on the following qualifications: 
13 
14 
15 
16 
(a) 
(b) 
A natural-born Filipino citizen of legal age; 
Must have a Masteral Degree 
in cooperatives, economics, finance, 
17 
management, public management, agriculture, and fisheries, or a degree in veterinary 
18 
medicine, law or relevant fields of study; 
19 
20 
(c) 
Must have five (5) years of experience as an official or officer of a 
21 
cooperative, government agency dealing with cooperatives, or non-govemment 
22 
organization engaged in cooperative development or, in the absence of a master's 
23 
degree, must at least have a bachelor's degree in the above-stated fields and with at 
24 
least ten (10) years of experience in cooperatives either as an officer of a cooperative 
25 
or a government agency or non-government organization engaged in cooperative 
26 
development; 
27 
28 
Any person appointed as Executive Director shall divest himself of any direct or 
29 
indirect pecuniary interest in or dealings with cooperatives upon his appointmellt. 
30 
31 
SEC. 17. Powers and Functions of the Executive Director. - The Executive 
32 
Director shall be the chief executive officer of the Authority and shall have the following 
33 
powers and functions: 
34 
35 
(a) Supervise, direct and coordinate the over-all operations of the Authority; 
36 
37 
(b) Prepare and submit periodic reports and other special reports of the Authority 
38 
as may be required from time to time by the President or Congress; 
10 


1 
2 
(c) Implement and/or execute the policies, directives, programs and projects 
3 
formu lated and adopted by the Board of Directors; 
4 
5 
(d) Delegate authority for the performance of any function to offices and 
6 
employees under his direction; 
7 
8 
(e) Appoint and discipline personnel of the Authority subject to the confirmation 
9 
by the Boa rd of Directors; 
10 
11 
(f) Prepare the agenda for deliberation by the Board of Directors; 
12 
13 
(g) Submit the proposed ann,ual and supplemental budgets of the Authority for 
14 
the consideration and approval of the Board of Directors. 
15 
16 
SEC. 18. Deputy Executive Director. - There shall be a Deputy Executive 
17 
Director who shall assist the Executive Director in th,e performance of his/her functions 
18 
and shall act as the Deputy Executive Officer. The Executive Director shall recommend 
19 
for appointment by the Board of Directors the Deputy Executive Director who shall be a 
20 
career service officer. 
21 
22 
I n the absence of the Executive Director, the Deputy Executive Director shall act 
23 
as the Executive Director of the Authority and shall exercise the powers and duties 
24 
appu rtenant thereto. 
25 
26 
SEC. 19. Collection and Payment of Fees. - Primary cooperatives that are 
27 
subject to the direct supervision and examination of the Authority, within the tirst thirty 
28 
(30) days of each year, shall pay an annual fee in an amount equal to some 
29 
percentage, as may be prescribed by the Board, of its average net worth during the 
30 
preceding year as shown on its end-of-month balance sheets: Provided, however, That 
31 
for primary cooperatives under the delegated supervision and examination of 
32 
accredited federations and unions, such fees shall be directly paid to the federation or 
33 
union concerned under the guidelines, rules and regulations to be established by the 
34 
Authority. Such fees rnay be deducted from. the CETF remitted by the primary 
35 
cooperative to the accredited federation or union. 
36 
11 


SEC:. 20. Cooperatives in the Education System. - The history, philosophy, 
2 
values, principles and practices of cooperatives and their important role in the national 
3 
economy shall be disseminated both in formal and non-formal education. 
4 
5 
The cooperative education and training program of government agencies, local 
6 
government units and non-governmental organizations duly registered under Philippine 
7 
laws shall be subject to accreditation standards set by the Authority upon consultation 
8 
with the cooperative sector. 
9 
10 
State colleges and universities as well as local universities and colleges shall be 
11 
allowed to offer formal and non-formal courses in cooperatives and shall provide 
12 
guidance and technical assistance to cooperatives in the communities wherein they 
13 
operate. They shall also include a 3-unit subject in cooperatives in the curricula of 
14 
business, accountancy, social sciences, agriculture, and other courses which can be 
15 
instrumental in the development of cooperatives. Private colleges and universities shall 
16 
be encouraged to offer cooperatives as a 3-unit subject or as a formal degree course. 
17 
Special incentives shall be formulated and defined by the Authority for students taking 
18 
up degree courses on cooperatives. 
19 
20 
Technology and vocational schools, both public and private, shall also be 
21 
encouraged to offer a course on cooperatives in relevant disciplines. 
22 
23 
The Department of Education (DepEd) shall include cooperatives as a major 
24 
topic in relevant subjects in high school and elementary school education specifically in 
• 
25 
practical arts and/or makabayan, in consultation with advocacy cooperativEis or the 
26 
cooperative sector in general. 
27 
28 
SEC. 21. Cooperatives in the Banking System. -
The development of 
29 
cooperative banks as part of the Philippine banking system shall be a major concern of 
30 
the Authority. 
Pursuant to Chapter 12 of RA 9520~ the Authority shall undertake the 
31 
necessary program towards this end in collaboration with the Bangko Sentral ng 
32 
Pilipinas and the cooperative sector concerned. 
33 
34 
SEC. 22. Prohibition. -
No organization shall be allowed to use the title 
35 
"cooperative" in its name unless it follows all generally accepted cooperative principles, 
36 
applicable cooperative laws, and is duly registered under RA 9520 and this Act. The 
37 
Authority shall be properly guided by the provisions of RA 9520 under Chapter 19, 
38 
Articles 139 and 140. 
12 


2 
SEC. 23. Information Campaign. -
Upon the effectivity of this Act and 
3 
promulgation of its Implementing Rules and Regulations, the Authority is mandated to 
4 
conduct an intensive information campaign on the provisions of this Act, for six (6) 
5 
months. 
6 
7 
SEC. 24. Appropriations. - The amount necessary for the implementation of 
8 
this Act shall be charged against the current year's appropriation of the CDA. However, 
9 
to carry out the additional functions and powers of the CDA as provided in this Act shall 
, 
lobe drawn from the Contingent Fund of the President. Thereafter, such sums as maybe 
11 
necessary for its continued implementation shall be included in the annual General 
12 
Appropriations Act (GM). 
13 
14 
SEC. 25. Transitory Provisions. - (a) All 'cooperatives registered under RA 
15 
9520, priOl' to the effectivity of this Act, shall be deemed registered with the Authority. 
16 
17 
(b) Electric cooperatives who have failed to register with the Authority under RA 
18 
9520 shall not be entitled to the benefits and privileges provided to cooperatives. 
19 
20 
(c) Upon the effectivity of this Act, the personnel of the restructured Cooperative 
21 
Development Authority shall, unless removed for cause and after due process, continue 
22 
to perforrn their duties and responsibilities and shall receive their corresponding 
23 
salaries and benefits. 
24 
25 
SEC. 26. Repealing Clause. -
All acts, presidential decrees, specifically 
26 
Section H of Presidential Decree 269, as arnended, general orders, executive orders 
27 
specifically Executive Order No. 332, Series of 2004, letters of irnplernentation, letters of 
28 
instruction, regulations or circulars, or parts thereof, inconsistent with any of the 
29 
provisions of this Act are hereby repealed or rnodified accordingly. In case of doubt, the 
30 
sarne shall be resolved in favor of the cooperatives 
31 
32 
SEC. 27. Separability Clause. - If for any cCjuse, any part of this Act is declared 
33 
unconstitutional, the rest of the provisions shall rernain in full force and effect. 
34 
35 
SEC. 28. Implementing Ru,les and Regulations. - The Authority, through its 
36 
Board of Directors in consultation with the Joint Congressional Oversight Cornrnittee on 
37 
Cooperatives, shall promulgate the irnplementing rules and regulations for the effective 
38 
implernentation of the Act. Such rules and regulations shall take effect upon its 
13 


publication in two (2) newspapers of general circulation. 
2 
3 
SEC. 29. Effectivity. -
This Act shall take effect fifteen (15) days after its 
4 
publication in two (2) newspapers of general circulation. 
5 
6 
Approved. 
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