FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
8 
SEP -8 
Second Regular Session 
1 
S E N A T E  
S.B. No. 
! 
Introduced by Senator Manny Villu 
EXPLANATORY NOTE 
Cooperatives can play a significant role on economic development, especially in 
rural areas where absence of large spending power does not attractive private investment 
to harness local skills and resources that can uplift the local economy living standards 
besides exporting produce to distant customer locations in cities. 
Cooperatives of farmers enable consolidation of fragmented land, investment in 
mechanization and irrigation, better bargaining power to buy seeds and fertilisers 
cheaply, arrange for proper common storage and greater bargaining power in selling farm 
produce to traders as also make banks comfortable in providing agricultural credit, 
thereby improving the productivity of agriculture and improving the incomes of farmer 
members of the cooperatives. 
Cooperatives of fishing/ pisciculture, animal husbandry and dairy, residential 
housing, and other economic activities can contribute similarly to economic development. 
Towards this end, being able to adjust with the needs of the times is of paramount 
importance, owing to the importance of cooperatives not only in the present needs of 
society but also in the future needs of the same. 
Legislation has to be enacted if a better chance for both survival and growth is to 
be given to cooperatives. 
The approval of this bill is earnestly sought 
MANWYVILL R 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
Second Regular Session 
1 
S E N A T E  
Senate Bill N o 2  
Introduced by Senator Manny Villa 
AN ACT 
REORGANIZING AND STRENGTHENING THE COOPERATIVE 
DEVELOPMENT AUTHORITY (CDA), AMENDING FOR THIS PURPOSE 
REPUBLIC ACT NO. 6939, REDEFINING ITS POWERS, FUNCTIONS AND 
OPERATIONS FOR THE EFFICIENT AND EFFECTIVE SUPERVISION, 
REGULATION, AND DEVELOPMENT OF COOPERATIVES IN THE 
PHILIPPINES, AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. TITLE. - 
THIS ACT SHALL BE KNOWN AS “THE REVISED 
CHARTER’ OF THE COOPERATIVE DEVELOPMENT AUTHORITY OF THE 
PHILIPPINES.” 
SEC. [l] 2. Declaration of Policy. It is hereby declared the policy of the State to 
promote the viability and growth of cooperatives as instruments of equity, social justice and 
economic development and create an agency, in fulfilment of the mandate in Section 15, 
Article XI1 of the Constitution. Toward this end, the State shall recognize cooperatives as 
associations organized for the economic and social betterment of their members, operating 
business enterprises based on mutual aid, and founded upon internationally accepted 
cooperative principles and practices 
“In furtherance of this policy, the appropriate national economic planning agency 
shall include the promotion of growth and expansion of cooperatives as a major and 
indispensable component of national development plans. All departments, branches, 
subdivisions and instrumentalities of the Government shall promote the formation of 
cooperatives under their respective programs by providing them with appropriate and suitable 
incentives. 


“The State recognizes the cooperative sector as p-imarily responsible for the 
institutional development of cooperatives. Accordingly, the State recognizes the rights of the 
cooperative sector to initiate and foster within its own ranks cooperative promotion, 
organization, training, information gathering, audit and support services, with government 
assistance where necessary. 
“Government assistance to cooperatives shall be free from any restriction and 
coiiditionality that may in any manner infringe upon the objectives and character of 
cooperatives as provided in this Act. The State shall, except as provided in this Act, maintain 
the policy of non-interference in the management and operation of cooperatives.” 
SEC. 121 3. Creotion of the Coopernfive Development Authority OF THE 
PHILIPPINES (CDAP). - The 
Cooperative Development Authority OF THE 
PHILIPPINES (CDAP) is hereby created to carry out the provisions of this Act. 
NOTWITHSTANDING ANY EXECUTIVE ORDER, MEMORANDUM CIRCULAR, 
OR LETTER OF INSTRUCTION, THE CDAP SHALL REMAIN UNDER THE 
ADMINISTRATIVE SUPERVISION OF THE OFFICE OF THE PRESIDENT. 
SEC. [3] 4. Powers, Functions and Responsibilities. - The [Authority] CDAP shall 
have the following powers, functions and responsibilities: 
[(a) Formulate, adopt and implement integrated and comprehensive plans and 
programs on cooperative development consistent with the national policy on cooperatives and 
the overall socio-economic development plans of the Government; 
(b) Develop and conduct management and training programs upon request of 
cooperatives that will provide members of cooperatives with the entrepreneurial capabilities, 
managerial expertise, and technical skills required for the efficient operation of their 
cooperatives and inculcate in them the true spirit of cooperativism and provide, when 
necessary, technical and professional assistance to ensure the viability and growth of 
cooperatives with special concern for agrarian reform, fishery and economically depressed 
sectors; 
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(c) Support the voluntary organization and consensual development of activities that 
promote cooperative movements and provide assistance towards upgrading managerial and 
technical expertise upon request of the cooperatives concerned; 
(d) Coordinate the efforts of the local government units and the private sector in the 
promotion, Organization, and development of cooperatives; 
(e) Register all cooperatives, and their federations and unions, including their 
division, merger, consolidation, dissolution or liquidation. It shall also register the transfer of 
all or substantially all of their assets and liabilities and such other matters as may be required 
by the Authority; 
(f) Require all cooperatives, their federations and unions to submit their annual 
~ financial statements, duly audited by a certified public accountant, and general information 
sheets: 
(g) Order the cancellation after due notice and hearing of the cooperative’s certificate 
of registration for non-compliance with administrative requirements and in cases of voluntary 
dissolution; 
(h) Assist cooperatives in arranging for financial and other forms of assistance under 
such terms and conditions as are calculated to strengthen their viability and autonomy; 
(i) Establish extension offices as may be necessary and financially viable to 
implement this Act. Initially, there shall be extension offices in the cities of Dagupan, Manila, 
Naga, Iloilo, Cebu, Cagayan de Oro and Davao; 
(j) Impose and collect reasonable fees and charges in connection with the registration 
of cooperatives; 
(k) Administer all grants and donations coursed through the Government for 
cooperative development, without prejudice to the right of cooperatives to directly receive 
and administer such grants and donations upon agreement with the grantors and donors 
thereof; 
3 


(1) Formulate and adopt continuing policy initiatives consultation with the cooperative 
sector through public hearings; 
(m) Adopt rules and regulations for the conduct of its internal operations; 
(n) Submit an annual report to the President and Congress on the state of the 
cooperative movement; and 
(0) Exercise such other functions as may be necessary to implement the provisions of 
cooperative laws and, in the performance thereof, the Authority may summarily punish for 
direct contempt any person guilty of misconduct in the presence of the Authority which 
seriously interrupts any hearing or inquiry with a fine of not more than five hundred pesos 
(P500.00) or imprisonment of not more than ten (1 0) days, or both. Acts constituting indirect 
contempt as defined under Rule 71 of the Rules of Court shall be punished in accordance 
with the said Rule.] 
(A) 
EXERCISE 
SUPERVISION AND 
JURISDICTION 
OVER 
ALL 
COOPERATIVES, 
WHETHER 
PRIMARY, 
SECONDARY, 
TERTIARY, 
FEDERATIONS OR UNIONS; 
(B) REGISTER ALL COOPERATIVES, THEIR FEDERATIONS AND 
UNIONS, 
INCLUDING 
THEIR 
AMENDMENTS, 
DIVISION, 
MERGER, 
CONSOLIDATION, DISSOLUTION AND LIQUIDATION, AS WELL AS THE 
TRANSFER OF ALL OR SUBSTANTIALLY ALL OF THEIR ASSETS AND 
LIABILITIES, AND SUCH OTHER RELATED MATTERS AS MAY BE 
NECESSARY; 
(C) REQUIRE ALL COOPERATIVES TO SUBMIT THEIR ANNUAL 
REPORTS, AUDITED 
FINANCIAL 
STATEMENTS, AND 
SUCH OTHER 
DOCUMENTS IN SUCH FORMS AS MAY BE DESCRIBED BY THE CDAP; 
(D) ORDER THE PAYMENT OF FINES, THE SUSPENSION, 4ND/OR THE 
CANCELLATION OF THE CERTIFICATE OF REGISTRATION OF ANY 
COOPERATIVE REGISTERED BY THE CDAP, OR SUSPEND ANY OFFICER OR 
4 


MEMBER OF THE COOPERATIVE, AFTER DUE NOTICE AND HEARING, FOR 
ANY VIOLATION OF THE COOPERATIVE LAWS, THEIR IMPLEMENTING 
RULES AND REGULATIONS, THE ARTICLES AND/ OR BY-LAWS OF THE 
COOPERATIVE, OR ANY LAW; 
(E) CONDUCT, MOTU PROPRIO, AN ANNUAL INSPECTION OR 
EXAMINATION OF ANY COOPERATIVE IN ACCORDANCE WITH SUCH 
RULES AND REGULATIONS THAT MAY BE PROMULGATED, OR CONDUCT 
SPECIAL INSPECTIONS OR EXAMINATION WHEN DEEMED NECESSARY TO 
PROTECT THE INTERESTS AND WELFARE OF THE MEMBERS OF 
COOPERATIVES. 
(F) 
SUPERVISE THE 
COMPLIANCE 
OF ALL 
COOPERATIVES, 
INCLUDING THEIR FEDERATIONS OR UNIONS OF COOPERATIVES WITH 
LAWS, RULES AND REGULATIONS, AND OTHER ISSUANCES ADMINISTERED, 
ENFORCED AND IMPLEMENTED BY THE CDAP, AS WELL AS THE DULY 
APPROVED AND REGISTERED BY-LAWS OF THE COOPERATIVE; 
(G) ESTABLISH, IN CONSULTATION WITH THE COOPERATIVE 
MOVEMENT, AND 
PRESCRIBE REASONABLE RULES, REGULATIONS, 
GUIDELINES OR STANDARDS THAT WILL PROMOTE THE SAFETY AND 
SOUNDNESS OF THE COOPERATIVES, AS WELL AS DETERMINE UNSAFE 
AND 
UNSOUND 
PRACTICES 
THAT 
SHOULD 
BE 
AVOIDED 
BY 
COOPERATIVES; 
(H) FORMULATE, ADOPT, AND IMPLEMENT INTEGRATED PLANS AND 
PROGRAMS ON COOPERATIVE DEVELOPMENT CONSISTENT WITH THE 
NATIONAL POLICY ON COOPERATIVES, INCLUDING SUCH PLANS AND 
PROGRAMS WITH SPECIAL FOCUS ON OVERSEAS FILIPINO WORKERS, THE 
RURAL AND MARGINALIZED FARM AND FISHERY WORKERS; 
(I) DEVELOP SUCH TRAINING PROGRAMS AS ARE NECESSARY IN 
ORDER TO ENSURE THE DEVELOPMENT, VIABILITY AND GROWTH OF 
5 


COOPERATIVES THAT 
WOULD PROVIDE THE MEMBERS OF THE 
COOPERATIVES 
WITH 
THE 
ENTREPRENEURIAL 
CAPABILITIES, 
MANAGERIAL EXPERTISE, AND TECHNICAL SKllLLS REQUIRED FOR THE 
EFFICIENT OPERATION OF THEIR COOPERATIVES; 
(J) COORDINATE, SUPPORT AND ASSIST THE DEVELOPMENTAL 
EFFORTS OF GOVERNMENT AGENCIES, WHETHER NATIONAL OR LOCAL, 
THE COOPERATIVE MOVEMENT, AND THE PRIVATE SECTOR IN THE 
PROMOTION, ORGANIZATION, AND DEVELOPMENT OF COOPERATIVES. 
TOWARDS THIS END, ALL GOVERNMENT AGENCIES, SUBDIVISIONS, AND 
INSTRUMENTALITIES ARE HEREBY DIRECTED TO COORDINATE THEIR 
PROGRAMS AND PROJECTS ON COOPERATIVE DEVELOPMENT WITH THE 
CDAP; 
(K) HEAR AND DECIDE ALL DISPUTES BETWEEN AND AMONG 
MEMBERS, OFFICERS, AND DIRECTORS OF COOPERATIVES, AND BETWEEN 
AND AMONG COOPERATIVES, AFTER CONDUCTING MEDIATION AND 
CONCILIATION PROCEDURES, AND AFTER DUE NOTICE AND HEARING, IN 
. ACCORDANCE WITH THE ALTERNATIVE DISPUTE RESOLUTION LAW; 
(L) IMPOSE AND COLLECT REASONABLE FEES, FINES OR CHARGES 
IN THE PERFORMANCE OF ITS REGISTRATION, REGULATORY AND 
SUPERVISORY FUNCTIONS: 
(M) CALL UPON, OR DEPUTIZE GOVERNMENT LAW ENFORCEMENT 
AGENCIES, LOCAL GOVERNMENT UNITS, OR COOPERATIVES, INCLUDING 
FEDERATIONS AND UNIONS, TO ASSIST IT IN ITS REGISTRATION, 
PVCULATORY AND SUPERVISORY FUNCTIONS: 
(N) SUBMIT AN ANNUAL REPORT TO THE PRESIDENT AND THE 
CONGRESS ON THE STATE OF THE COOPERATIVE MOVEMENT; 
6 


(0) ADOPT SUCH RULES AND REGULATIONS FOR THE CONDUCT OF 
ITS INTERNAL OPERATIONS; AND 
(P) EXERCISE SUCH OTHER POWERS AND FUNCTIONS AS MAY BE 
NECESSARY TO IMPLEMENT THE PROVlSIONS OF THE COOPERATIVE 
LAWS, AND, IN THE PERFORMANCE THEREOF, THE CDAP MAY SUMMON 
. WITNESSES, ORDER THE PRODUCTION OF DOCUMENTS AND RECORDS, 
AND MAY SUMMARILY PUNISH FOR DIRECT CONTEMPT ANY PERSON 
GUILTY OF MlSCONDUCT IN THE PRESENCE OF THE CDAP BY 
IMPRISONMENT OF NOT MORE TEN (10) DAYS. ACTS CONSTITUTING 
INDIRECT CONTEMPT AS DEFINED UNDER RULE 71 OF THE 1997 RULES OF 
CIVIL PROCEDURE SHALL BE PUNISHED IN ACCORDANCE WITH SAID 
RULE. 
SEC. [4] 5. Governing Body. - The Authority shall be governed by a Board of 
[Administrators] GOVERNORS consisting of a Chairman and six (6) members to be 
appointed by the President, all of whom shall be chosen from among the nominees of the 
cooperative sector with two (2) representatives each from Luzon, Visayas and Mindanao. 
They shall serve for a term of six (6) years without reappointment; Provided, [That among 
those first appointed, the Chairman shall serve for a term of six (6) years, three ( 3 )  members 
to serve for a term of four (4) years, and three (3) members to serve for a term of two (2) 
years; Provided, further, That there shall be four (4) ex ofjcio members, one each from the: 
(a) Department of Agriculture, (b) Department of Transportation and Communications; (c) 
National Electrification Administration, and (d) Sugar Regulatory Administration. Said 
representation status for the agencies is on a non-voting basis and terminates one (1) year 
from the operation of the Authority, but said ex officio members shall not be holding any 
other board position in any government entity. The Chairman and members shall serve on a 
full-time basis.] THAT ONE OF THE REPRESENTATIVES SHALL COME FROM 
THE AUTONOMOUS REGION OF MUSLIM MINDANAO. ANY VACANCY 1N 
THE BOARD SHALL BE FILLED BY APPOINTMENT BY THE PRESIDENT IN 
7 


ACCORDANCE WITH THE MEMBERSHIP ALLOCATION SET FORTH IN THIS 
SECTION; PROVIDED, THAT A MEMBER SO APPOINTED SHALL SERVE ONLY 
FOR THE UNEXPIRED TERM. 
SEC. (51 6. Qualifications of Members of the Governing Board. - No person shall 
be appointed Chairman or member of the Board of [Administrators] GOVERNORS unless 
he possesses the following qualifications: 
(a) A natural born Filipino citizen of legal age; 
(b) A bachelor’s degree in cooperatives, economics, finance, agriculture, fisheries, 
veterinary medicine, business, social science, law, management, or in similar fields of study 
and five (5) years of experience as an official or officer of a cooperatives, government 
agency, or non-government organization engaged in cooperative development or, in the 
absence of a bachelor’s degree,,at least ten (10) years of experience in cooperatives either as 
an officer of a cooperative or a government agency or non-government organization engaged 
in cooperative development; and 
(c) Must be a resident of the region he represents for at least five (5) years. 
Any person appointed as Chairman or regular member of the Board of 
[Administrators] GOVERNORS shall divest himself of any direct or indirect pecuniary 
interest or dealings with cooperatives upon his appointment. 
SEC. 7. Board of 
[Administrators] Governors Meeting. - The Board of 
[Administrators] GOVERNORS shall meet at least once a month for the transaction of its 
regular business. Special meetings may be called by the Chairman or majority of the 
members to consider specific matters. A majority vote by the entire Board shall be required 
for a decision. All meetings of the Board shall be held at the head office in Manila or at any 
other place as may be determined by the Board. 
[The Board of Administrators shall appoint an Executive Director who shall be the 
chief operating officer of the Authority whose compensation shall be fixed by the Board of 
Administrators.] 
8 


SEC. 8. THE ADMINISTRATOR AND DEPUTY ADMINISTRATOR. - THE 
CHAIRMAN OF THE BOARD OF GOVERNORS SHALL ALSO SERVE AS THE 
CHIEF EXECUTIVE OFFICER OF THE CDAP WITH THE RANK AND 
PRIVILEGES OF A DEPARTMENT SECRETARY. HE/SHE SHALL SUPERVISE, 
DIRECT AND COORDINATE THE OVER-ALL OPERATIONS OF THE CDAP 
AND SHALL SUBMIT PERIODIC REPORTS AND OTHER SPECIAL REPORTS 
THAT MAY BE REQUIRED FROM THE CDAP. 
A DEPUTY ADMINISTRATOR WHO SHALL BE A CAREER OFFICER 
SHALL BE APPOINTED BY THE BOARD OF GOVERNaRS AND SHALL ACT AS 
THE 
CHIEF 
OPERATING 
OFFICER. 
HE/SHE 
SHALL 
ASSIST 
THE 
ADMINISTRATOR IN THE PERFORMANCE OF NIS/HER FUNCTIONS. 
SEC. 171 9. Organization olthe Authority. -The Authority shall be organized within 
one hundred twenty (120) days from the effectivity of this Act. THE CDAP SHALL 
ORGANIZE AND MAINTAIN REGIONAL OFFICES IN SUCH REGIONS AS MAY 
BE NECESSARY TO IMPLEMENT THE PROVISIONS OF THE COOPERATIVE 
LAWS. 
SEC. [8] 10. Mediation and Conciliation. - Upon request of either or both parties, 
the Authority shall mediate and conciliate' disputes within a cooperative or between 
cooperatives IN ACCORDANCE WITH THE PROVISIONS OF THE COOPERATIVE 
CODE AND THE ALTERNATIVE DISPUTE RESOLUTION LAW; Provided, That if 
no mediation or conciliation succeeds within three (3) months from request thereof, a 
certificate of non-resolution shall be issued by the [commission] CDAP prior to the filing of 
the appropriate action before the proper courts. 
SEC. [9] 11. Power to Register Cooperatives. - The power to register cooperatives 
shall be vested solely on the [Authority] CDAP. The functions of the following departments 
and agencies relating to the registration of cooperatives as such are hereby transferred to the 
[Authority] CDAP: 
(a) the Department of Agriculture; 


(b) the Bureau of Agricultural Cooperatives Development; 
(c) the Department of Transportation and Communications; 
(d) the Sugar Regulatory Administration; 
(e) the National Electrification Administration; and 
(f) any other pertinent government agency. 
The Bureau of Agricultural Cooperatives Development created under Executive Order 
No, 116, series of 1987, is hereby abolished and its qualified employees are hereby absorbed 
by the Cooperative Development Authority in accordance with its staffing pattern, subject to 
Civil Service rules and regulations and rules of the Office of Compensation and Position 
Classification; Provided, That the Regional Cooperative Development Assistance Offices of 
’ Regions IX and XII, created under Executive Order No. 634, are also hereby abolished and 
their employees shall be given preference for employment with the Cooperative Development 
Authority in accordance with its staffing pattern, subject to Civil Service rules and 
regulations; Provided, $finally, That those who are not absorbed shall be given separation pay 
computed at one and one fourth (1 %I) months salary for every year of service. Service of six 
(6) months or more shall be considered as one (1) year in computing the years of service for 
severance pay and, whenever applicable, other retirement benefits under existing laws. 
SEC. [lo] 12. Transfer of Funds and Programs. - The Cooperative Development 
Loan Fund created under Presidential Decree No. 175, as amended, is hereby transferred 
from the Department of Agriculture to the Authority. 
The function of the Fund for Management Training and Assistance Program granted 
to the Department of Agriculture by Presidential Decree No. 175, as amended, is likewise 
hereby transferred to the Authority. 
The Fund for Management Training and Assistance Program under Presidential 
Decree No. 175, as amended, is hereby converted into a fund for the development of 
‘ cooperatives and may be used for such purpose upon the request of the cooperatives 
10 


concerned; Provided. That duly registered cooperatives shall have the right to establish their 
own private training centers or federations for purposes of cooperative development. 
In addition, the Cooperative Marketing Project as created under loan agreements 
which are now managed by the Department of Agriculture is likewise hereby transferred to 
the Authority. 
SEC. [ I l l  13. Cooperatives in the Edncution System. - The history, philosophy, 
principles and practices of cooperatives and their role as a factor in the national economy 
. shall be disseminated both in formal and non-formal education. 
The role of non-government organizations, not registered as cooperatives but duly 
registered under Philippine laws and engaged in cooperative promotion, organization, 
research and education, shall be recognized. The Authority may accredit such non- 
government organizations as non-academic training organizations. The training courses 
offered by them may be eligible as credits for the purposes of academic, professional and 
career advancements of their trainees. Existing training centers for cooperatives may qualify 
as non-government organizations under this Act. 
State colleges and universities shall provide technical assistance and guidance to 
cooperatives in the communities wherein they operate, upon request. 
SEC. [12] 14. 'Cooperatives in the Banking System. - The promotion and 
development of cooperative banks as part of the Philippine banking system shall be a major 
concern of the [Authority] CDAP which shall undertake the necessary program towards this 
end TO PURSUE THIS in collaboration with the [Central Bank of the Philippines] 
BANGKO SENTRAL NG PILIPINAS (BSP) and the cooperative sector concerned. 
SEC. [13] 15. Rule-Making Authority. - The [Authority] CDAP is hereby authorized 
to promulgate, after due public hearing [and upon approval of the President], such rules and 
regulations as may be necessary to implement the provisions of this Act. Such implementing 
rules and regulations shall take effect within fifteen (1 5 )  days after publication thereof in the 


Official Gazette or in two (2) newspapers of general circulation. All subsequent amendments 
to the implementing rules and regulations shall undergo the same process. 
SEC. [14] 16. Prohibitions. - No organization shall be allowed to use the title 
“cooperative” in its name unless it follows all generally accepted cooperative principles, 
. apBlicable cooperative laws, and is duly registered under this Act; Pvovided, That 
organizations which have used the word “cooperative” as part of their nomenclature but 
which do not qualify as cooperatives under the provisions of Lhis Act shall have [three (3)] 
TWO (2) years within which to qualify and to register with the Authority. If at the end of the 
three-year period provided herein, the said organizations still do not qualify , it shall be 
unlawful for the organizations to continue using the word “cooperative” in their names. 
SEC. [15]. 17. Information Campaign. - The Cooperative Development Authority is 
mandated to conduct a six-months information campaign on the provisions of this Act, 
heginning three (3) months from the effectivity of this Act. 
SEC. [16]. 18. Appropriations. - The funds needed to carry out the provisions of this 
Act shall be charged to the appropriations of the [Bureau of Agricultural Cooperatives 
Development and the Regional Cooperative Development Assistance Offices of Regions IX 
and XI1 under the current General Appropriations Act in addition to the appropriations of 
other departmentslagenciesifunds whose functionsiprograms are transferred to the Authority; 
Provided, That in its initial year of operations, an additional amount of not exceeding sixty 
million pesos (P60,000,000.00) may he requested and drawn by the Authority from the 
Contingent Fund of the President. Thereafter, such sums as may be necessary for its 
continued implementation shall be included in the annual General Appropriations Act.] 
CDAP. IN ORDER TO SUSTAIN THE PROGRAMS AND PROJECTS OF THE 
GOVERNMENT, AN AMOUNT EQUIVALENT TO TWO PERCENT (2%) OF THE 
EXPANDED VALUE ADDED TAX FOR THE PREVIOUS YEAR SHALL BE 
ALLOCATED ANNUALLY FOR DEVELOPMENT OF THE COOPERATIVE 
MOVEMENT IN ADDITION TO THE CDAP’S ANNUAL APPROPRIATIONS. 
12 


SEC. [17] 19. Trnnsitory Provisions. - [All 
cooperatives registered under 
Presidential Decree Nos. 175 and 775, and Executive Order No. 398 shall be deemed 
registered with the Cooperative Development Authority; Provided, however, That they shall 
submit to the nearest Cooperative Development Anthoritj office their certificates of 
registration, copies of their articles of incorporation and by-laws, and their latest duly audited 
financial statements within one (1) year from the effectivity of this Act, otherwise, their 
registration shall be cancelled; Provided, further, That cooperatives created under 
Presidential Decree No. 269, as amended by Presidential Decree No. 1465, shall be given 
three (3) years within which to qualify and register with the Authority; Provided, Jinally, That 
. after these cooperatives shall have qualified and registered, the provisions of Sections 3 and 5 
of Presidential Decree No. 1645 shall no longer be applicable to the said cooperatives.] ALL 
COOPERATIVES PREVIOUSLY REGISTERED UNDER THE COOPERATIVE 
CODE OF THE PHILIPPINES ARE HEREBY DEEMED REGISTERED; 
PROVIDED, THAT SUCH COOPERATIVES SHALL SUBMIT TO THE NEAREST 
OFFICE OF THE CDAP THEIR CERTIFICATES OF REGISTRATION, AND A 
COPY OF THEIR LATEST REGISTERED ARTICLES 
OF COOPERATION, BY- 
LAWS, AND AUDITED FINANCIAL STATEMENT. 
ALL ELECTRIC COOPERATIVES WHO HAVE NOT REGISTERED WITH 
THE CDAP AT THE ENACTMENT OF THIS ACT ARE GIVEN A PERIOD OF 
TWO (2) YEARS WITHIN WHICH TO REGISTER WITH THE CDAP IN 
ACCORDANCE WITH THE RULES TO BE PROMULGATED BY THE CDAP. 
FAILING THIS, SUCH ELECTRIC COOPERATIVES NOT REGISTERED WITH 
THE 
CDAP 
SHALL 
BE 
PROHIBITED 
FROM 
USING 
THE 
TERM 
“COOPERATIVE” IN THEIR REGISTERED AND BUSINESS NAME. 
SEC. [18] 20. Repeals. -All [acts] LAWS, general orders, executive orders, letters of 
implementation, letters of instruction, regulations or circulars, or parts thereof, inconsistent 
with any of the provisions of this Act, MORE PARTICULARLY SECTION 13 OF 
PRESIDENTIAL DECREE NO. 269, AS AMENDED, AND EXECUTIVE ORDER NO. 
13 


898 ARE HEREBY REPEALED OR MODIFIED ACCORDINGLY. IN CASE OF 
DOUBT, 
THE 
SAME 
SHALL 
BE 
RESOLVED 
IN 
FAVOR 
OF 
n r r c  
COOPERATIVES. 
SEC. [19] 21. Sepnmhility. - If for any cause any part of this Act is declarcd 
unconstitutional, the rest of the provisions shall remain in force and effect. 
SEC. [20] 22. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a NATIONAL newspaper of general circulation. 
Approved, 
I 4