3 
Y 
6" 
6 
THIRTEENTH CONGRESS OF TIlE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
W 
Introduced by Senator Magsaysay, Jr. 
EXPLANATORY NOTE 
Cooperatives are recognized as viable instruments for the promotiop of equity, 
social justice and national development. They are socio-economic organizations that 
work for the improvement of the lives of their members by letting them participate in 
development programs. Cooperatives stimulate business agreement, allowing them to 
compete with the private sector. 
The transportation sector understands the need for an organized and efficient 
system that promotes its growth if it is to cope up with the demands of the increasing 
population, especially in urban areas. Thus, it would be beneficial for them to form a 
transportation cooperative to serve as their vehicle for advancement. 
Government can do its share by providing a Cooperatives Loan Fund to finance 
the acquisition of transportation units by the transport cooperatives and encourage small 
entrepreneurs to become involved in the transportation. 
As a sign of support for the development of the transportation industry, the early 
enactment of this bill is sought. 
, 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
OF THE PHILIPPINES 
S E N A T E  
S.B.No. 11 8 
Ifitroduced by Senator Magsaysay, Jr. 
AN ACT 
ESTABLISH A FUND KNOWN AS THE TRANSPORT COOPERATIVES LOAN 
FUND 
TO 
FINANCE 
THE 
ACQUISITION 
OF 
VEEUCLES 
BY 
TRANSPORTATION COOPERATIVES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Declaration of Policy - In accordance with the constitutional 
mandate to promote the growth and viability of cooperatives as instruments for social 
justice and national economic development, the resources of Government shall be utilized 
to foster and strengthen the development of transportation cooperatives in acquiring 
transportation units for the public transport system, and also for the eventual ownership 
by members of such cooperatives. 
SEC. 2. Establishment of Transportation Cooperatives Loan Fund - The 
following government financial institutions, namely: the Land Bank of the Philippines 
(LBP), the Government Service Insurance System (GSIS), the Social Security System 
(SSS), and the Development Bank of the Philippines (DBP), and the are hereby directed 
to contribute initially One hundred million pesos (PlOO,OOO,OOO.OO) each to the fund to 
be known as the Transport Cooperatives Loan Fund: Provided, That such contribution 
shall be made in accordance with existing policies and charter requirements of their 
respective charters and shall constitute as investments of the participating financial 
institutions: Provided, firtherrnore, 
That said Fund shall be used exclusively to finance the acquisition of 
transportation units by transport cooperatives. 


SEC. 3. Administration of the Fund - The Fund shall be administered by the 
Development Bank of the Philippines (DBP), which is hereby empowered to promulgate 
the necessary rules, guidelines, and regulations in coordination with the Department of 
Transportation and Communications and representatives of the participating government 
financial institutions. 
SEC. 4. Separability Clause - If any reason any portion or provision of this 
Act is declared invalid or unconstitutional, such parts not affected thereby shall remain in 
full force and effect. 
SEC. 5. Repealing Clause - All laws, orders, issuances, rules and regulations, 
or parts thereof, inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
SEC. 6. Effectivity - This Act shall take effect fifiteen (15) days after its 
complete publication in at least two (2) newspapers of general circulation. 
Approved,