NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
V 
wf t *'
24 FEB 27 P6 :Q0
SENATE 
S. No. ^579
lltCEIVI: J BV:
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR THE REGISTRATION, REGULATION, AND OPERATION OF 
COOPERATIVE BANKS
EXPLANATORY NOTE
Through the Philippine Cooperative Code of 2008, the cooperative sector has 
played a huge role in delivering financial services to rural areas especially the 
extension of loans and credit to marginalized communities. Cooperative banks are 
crucial and instrumental in aiding the government's effort with poverty alleviation by 
providing credit and other financial services to the cooperative sector. In a co­
existence of both stakeholders, cooperative banks are owned, managed, and financed 
by primary cooperatives using their funds from their members' shareholding and in 
turn, these primary cooperatives borrow money from cooperative banks to support 
their loan programs for their members who are usually farmers, fisherfolk, micro 
entrepreneurs, and small traders.
As of December 2022, the total operating income of rural and cooperative banks 
in the Philippines amounted to approximately 41.09 billion Philippine pesos while the 
value of deposits in rural and cooperative banks in the Philippines amounted to 
approximately 270 billion Philippine pesos.
This bill aims to create an effective legal framework for cooperative banks and 
through this bill, cooperative banks will better serve farmers, fisherfolk, micro


entrepreneurs, small traders, and other rural workers. Through this bill, it is hoped 
that the market reach of cooperative banks will expand to the unbanked Filipinos.
Therefore, immediate passage of this bill is earnestly sought.
MARK A. VILLAR


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session
ut . 
t:
)
SENATE
S. NO. 2579
Introduced by Senator MARK A. VILLAR
AN ACT
PROVIDING FOR THE REGISTRATION, REGULATION, AND OPERATION OF 
COOPERATIVE BANKS
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
CHAPTER I
2 
DECLARATION OF POLICY AND DEFINITIONS
3 
Sec. 1. Short Title. —This Act shall be known as the "Cooperative Banking Act
4 
of2024"
5 
Sec. 2. Declaration of Policy. —The State hereby declares its policy to foster
6 
the creation and growth of cooperatives to promote self-reliance, communal unity and
7 
the attainment of economic development and social justice. The State shall encourage
8 
the private sector to undertake the actual formation and organization of cooperatives
9 
and shall create an atmosphere that is conducive to the growth and development of
10 
these cooperatives.
11 
Further, the State hereby declares its policy to: (1) Recognize Cooperative
12 
Banks (CBs) as practical vehicles for the promotion of self-reliance and economic
13 
development and the attainment of social justice; (2) Encourage thrift and savings
14 
mobilization for the achievement of sustainable economic development primarily
15 
among cooperatives and their members; and (3) Regulate and supervise the activities


1 
of CBs in order to achieve sound, stable, sustainable, and efficient operations for the
2 
protection of the public interest.
3 
Towards these ends, the Government shall encourage and assist in the
4 
establishment of CBs in order to make credit facilities available and readily accessible
5 
on reasonable terms.
6 
Sec. 3. Definition of Terms. — As used in this Act:
7 
a) Cooperative Bank - refers to a bank organized under this Act and under the
8 
provisions of R.A. No. 9520, otherwise known as the Philippine Cooperative
9 
Code of 2008, and prior laws, for the primary purpose of providing a wide
10 
range of financial services to cooperatives and their members and the
11 
public, and which was issued by the Bangko Sentral ng Pilipinas (BSP) a
12 
license to operate as such, the majority shares of which are owned and
13 
controlled by the cooperative organizations;
14 
b) Cooperative organization - refers to any cooperative whether primary,
15 
secondary, tertiary, or a special type of cooperative registered under the
16 
provisions of R.A. No. 9520 and R.A. No. 10744, otherwise known as the
17 
Credit Surety Fund Cooperative Act of 2015; and
18 
c) Samahang Nayon and Municipal Katipunan ng mga Samahang Nayon -
19 
refers to pre-cooperative organizations established under Presidential
20 
Decree No. 175, on Strengthening the Cooperative Movement.
21 
CHAPTER II
22 
ORGANIZATION
23 
Sec. 4. Organization and Membership. —The Organization and membership of
24 
a Cooperative Bank (CB) shall be governed by the following:
25 
a) Organization - At least fifteen (15) cooperative organizations duly
26 
established and registered under the Cooperative Code may register a CB
27 
with the Cooperative Development Authority (CDA), upon compliance with
28 
the requirements of and required authorization from the BSP;
29 
b) Membership - Membership in a CB shall be open to:


1 
a. Cooperatives of all types and categories;
2 
b. Individuals who are members of a cooperative;
3 
c. Foreign cooperatives;
4 
d. Pre-cooperative organizations established under P.D. 175; and
5 
e. Individuals
6 
Membership in a CB is either regular or associate. Regular membership shall be
7 
limited to cooperative organizations and individuals who are members of a domestic
8 
cooperative or foreign cooperative. Associate members shall be pre-cooperative
9 
organizations established under P.D. 175 and individuals who are subscribing and
10 
holding preferred shares only.
11 
The common shareholdings of local cooperative organizations shall at all times
12 
be at least sixty percent (60%) of the total outstanding voting shares of the CB.
13 
Common shares held by individuals who are members of a cooperative and foreign
14 
cooperatives shall not be more than forty percent (40%) of the total outstanding
15 
voting shares: Provided, That the common shareholdings of each individual who is a
16 
member of a cooperative shall not be more than five percent (5%) of the total
17 
outstanding voting shares.
18 
Sec. 5. Establishment of Cooperative Banks. —The articles of cooperation and
19 
by-laws of a CB or any amendment thereto shall be registered with the CDA only when
20 
accompanied by a certificate of authority issued by the BSP.
21 
Sec. 6. Establishment of Branches and Other Offices. - The establishment of
22 
branches, branch-lite units, or other banking offices shall be governed by the rules
23 
and regulations of the BSP.
24 
CHAPTER III
25 
MANAGEMENT AND GOVERNANCE OF COOPERATIVE BANKS
26 
Sec. 7. Management of Cooperative Banks. — The management of the CBs
27 
shall be governed by the rules and regulations to be promulgated by the BSP, in
28 
consultation with the CDA. To maintain the quality of bank management and accord
29 
appropriate protection to depositors and the public in general, the BSP shall prescribe


1 
the fit and proper qualifications of bank directors and officers for the purposes of this
2 
Section, giving due recognition to the unique nature and character of CBs.
3 
The number, composition, and term of the Board of Directors shall be defined
4 
in the articles of cooperation and by-laws of the CB in accordance with the following
5 
guidelines:
6 
a) Board and Committees - The CB shall constitute, at a minimum, the Board
7 
of Directors, Election Committee, and Audit Committee.
8 
The Board of Directors shall be composed of at least five (5) but not more
9 
than fifteen (15) members, at least one (1) of whom is an independent
10 
director. It shall be entrusted with the management of the affairs of the CB.
11 
It shall be responsible for the policy formulation, strategic planning,
12 
direction-setting and activities of the CB. The members of the Board of
13 
Directors shall be elected by the general assembly or representative
14 
assembly of the cooperative.
15 
The election Committee shall be responsible for the formulation and
16 
implementation of election rules and guidelines. It shall supervise the
17 
conduct of election and election-related activities, canvass and certify the
18 
results of the election, and decide cases relative to such election, except
19 
those involving the committee itself or its members. The members of the
20 
Election Committee shall be elected by the general assembly or
21 
resperentative assembly.
22 
The Audit Committee is a board-level committee whoch composition,
23 
functions and responsibilities shall be in accordance with the existing
24 
regulations of the BSP. Other board-level committees may be created as
25 
may be directed by the BSP.
26 
Other committees may be created by the Board of Directors with powers,
27 
functions, and responsibilities which shall be defined in the by-laws.
28 
b) Key Management Officers - The key management officers shall be
29 
appointed by the Board and shall include the President, Treasurer, Internal
30 
Auditor, and Compliance Officer, or their equivalent ranks. The BSP shall


1 
prescribe the qualifications and disqualifications of the key management
2 
officers.
3 
Sec. 8. Vacancy in the Board and Committees. - Any vacancy in the board of
4 
directors, other than by removal or by expiration of term, may be filled by the vote of
5 
at least a majority of the remaining directors, if still constituting a quorum; otherwise,
6 
said vacancy must be filled by the general assembly in a regular or special meeting
7 
called for that purpose. A director so elected to fill a vacancy shall serve only the
8 
unexpired term of the predecessor in office.
9 
In case of vacancy in the committees, the Board, unless otherwise provided in
10 
the by-laws, will appoint a person to fill the same, subject to the provision that the
11 
person appointed shall serve only for the unexpired portion of the term.
12 
Sec. 9. Compensation. - In the absence of any provision in the by-laws fixing
13 
their compensation, the directors shall not receive any compensation except for
14 
reasonable per diems: Provided, however, That the directors and officers shall not be
15 
entitled to any per diem when, in the preceding calendar year, the CB reported a net
16 
loss or had a dividend rate less than the official inflation rate for the same year. Any
17 
compensation other than per diems may be granted to directors by a majority vote of
18 
the members with voting rights at a regular or special general assembly meeting
19 
specifically called for that purpose: Provided, That no additional compensation other
20 
than per diems shall be paid during the first year of existence of the CB.
21 
In no case shall the total yearly compensation of directors exceed ten percent
22 
(10%) of the net income of the CB during the preceding year.
23 
Sec. 10. Liabiiity of Directors, Officers and Committee Members. - Directors,
24 
Officers, and Committee Members, who wiiifuiiy and knowingly vote for or assent to
25 
patently unlawful acts or who are guilty of gross negligence or bad faith in directing
26 
the affairs of the CB or acquire any personal or pecuniary interest in conflict with their
27 
duties as such directors, officers or committee members shaii be liabie jointiy and
28 
severally to the CB for the full amount of damages or personal gain resuiting
29 
therefrom.


1 
Sec. 11. Disloyalty of Directors and Officers. - A director or officer who, by
2 
virtue of the office, acquires a financiai opportunity which shouid beiong to the CB
3 
shaii be iiabie for damages and must account for doubie the profits that otherwise
4 
wouid have accrued to the CB by refunding the same, unless the act was ratified by a
5 
two-thirds (2/3) vote of all the members with voting rights.
6 
This provision shall be applicable notwithstanding the fact that the director or
7 
officer used personal funds for the venture.
8 
Sec. 12. Dealings of Directors, Officers, Stockholders and Related Interests
9 
(DOSRI). - Dealings with directors, officers, stockholders and related interests of the
10 
CB shall comply with Section 36 of R.A. No. 8791, otherwise known as the "General
11 
Banking Law of 2000."
12 
Sec. 13. Illegal Use of Confidential Information. - A director or officer, or an
13 
associate of a director or officer, who, for the benefit or advantage or that of an
14 
associate, makes use of confidential information that, if generally known, might
15 
reasonably be expected to adversely affect the operations and viability of the CB, shall
16 
be held:
17 
a) Liable to compensate the CB for the direct losses suffered by the CB as a
18 
result of the illegal use of information; and
19 
b) Accountable to the CB for any direct benefit or advantage received or yet to
20 
be received by the associate, as a result of the transaction.
21 
The CB shall take the necessary steps to enforce the liabilities and
22 
accountabilities described herein.
23 
Sec. 14. Bond for Faithful Performance of Duties and Obligations. - Every officer
24 
or employee handling funds, securities, or property on behalf of a CB shall, before
25 
performing such duties, execute and deliver adequate and appropriate bond for the
26 
faithful performance of one's duties and obligations.
27 
Sec. 15. Quorum and Voting Rights. - In meetings of the Board of Directors,
28 
whether special or regular, the quorum requirements shall be one-half plus one of all
29 
the members. Each director shall only have one (1) vote.


1 
CHAPTER IV
2 
GENERAL ASSEMBLY
3 
Sec. 16. Composition of the Generai Assembiy. - The general assembly shall be
4 
composed of regular members who are entitled to vote under the articles of
5 
cooperation and by-laws of the CB.
6 
Sec. 17. Powers of the Generai Assembiy - The general assembly shall be the
7 
highest policy-making body of the CB and shall exercise such powers as are stated in
8 
the Cooperative Code, in the articles of cooperation, and in the by-laws of the CB. The
9 
general assembly shall have the following exclusive powers which cannot be
10 
delegated:
11 
a) To determine and approve amendments to the articles of cooperation and
12 
by-laws;
13 
b) To elect or appoint the members of the board of directors, and to remove
14 
them for cause; and
15 
c) To approve developmental plans of the CB.
16 
Subject to such other provisions of the Cooperative Code and only for purposes
17 
of prompt and intelligent decision-making, the general assembly may, by a three-
18 
fourths (3/4) vote of all its members with voting rights present and constituting a
19 
quorum, delegate some of its powers to a smaller body of the CB. These powers shall
20 
be enumerated under the by-laws of the CB.
21 
Sec. 18. Meetings. - A regular meeting shall be held annually by the general
22 
assembly on a date fixed in the by-laws, or if not so fixed, on any date within one
23 
hundred eighty (180) days after the close of each fiscal year: Provided, That notice of
24 
regular meetings may be sent through personal delivery, registered mail or other
25 
electronic means, or such other manner as the BSP may allow under its existing
26 
regulations, to all members of record, and posted in conspicuous places within the CB
27 
premises.
28 
Whenever necessary, a special meeting of the general assembly may be called
29 
at any time by a majority vote of the Board f Directors or as provided for in the by-


1 
laws: Provided, That a notice shall be sent one (1) week prior to the meeting to all
2 
members who are entitled to vote: Provided, however. That a special meeting shall
3 
be called by the Board of Directors after compliance with the required notice or by at
4 
least ten percent (10%) of the total members who are entitled to vote to transact
5 
specific business covered by the call.
6 
If the board fails to call a regular or a special meeting within the given period,
7 
the CDA shall, upon petition of ten percent (10%) of all the members of the CB who
8 
are entitled to vote, and for good cause shown, shall issue an order to the petitioners
9 
directing them to call a meeting of the general assembly by giving proper notice as
10 
required in the Cooperative Code or in the by-laws.
11 
In the case of a newly approved CB, a special general assembly shall be called,
12 
as far as practicable, within ninety (90) days from such approval;
13 
The CDA may call a special meeting of the CB for the purpose of reporting to
14 
the members the result of any examination or other investigation of the CB affairs;
15 
and
16 
Notice of any meeting may be waived, expressly or impliedly, by any member.
17 
Sec. 19. Quorum and Voting System. - The quorum requirement for general
18 
assembly meetings, whether special or regular, shall be one-half plus one of the
19 
number of voting shares of all the members in good standing.
20 
To amend its articles of cooperation and by-laws, at least three-fourths (3/4)
21 
vote of all the members with voting rights, present and constituting a quorum shall be
22 
required. All other voting requirements shall be prescribed by the BSP.
23 
The voting rights of the members shall be proportionate to the number of their
24 
paid-up shares.
25 
CHAPTER V
26 
POWERS, FUNCTIONS, AND ALLIED UNDERTAKINGS


1 
Sec. 20. Powers and Functions of Cooperative Banks. - CBs shall primarily
2 
provide a wide range of financial services to cooperative organizations, their members,
3 
and the public. A CB may perform any or all of the following banking services:
4 
a) Extend loans and advances primarily for the purpose of meeting the normal
5 
credit needs of farmers, fishermen, or farm families as well as cooperatives,
6 
merchants, and private and public employees: Provided, That loans and
7 
advances granted to cooperative organizations shall not be subject to
8 
individual ceilings on loans to DOSRI;
9 
b) Accept savings and time deposits;
10 
c) Act as correspondent of other financial institutions;
11 
d) Discount and rediscount paper with the Land Bank of the Philippines,
12 
Development Bank of the Philippines or any other bank, including its
13 
branches and agencies. Said banks shall specify the nature of paper deemed
14 
acceptable for rediscounting, as well as the rediscount rate to be charged
15 
by any of these banks;
16 
e) Act as collection agent;
17 
f) Act as official depository of Local Government Units and other government
18 
agencies or instrumentalities;
19 
g) Acquire readily marketable bonds and other debt securities;
20 
h) Buy and sell foreign exchange;
21 
i) To act as conduit bank for the disbursement of government funds intended
22 
for lending to agricultute, micro, small-medium enterprises (MSMEs) and
23 
projects for local economic development;
24 
j) To be eligible to participate in government program allocations for
25 
agricultural lending, social housing, loans to rural micro enterprises and
26 
other initiatives towards inclusive growth; and
27 
k) Offer other banking services as provided for in Section 53 of R.A. No. 8791.
28 
In addition to the powers granted to CBs by this Act and other existing laws,
29 
any CB may perform any or all of the banking services offered by other types of banks
30 
subject to the prior approval of the BSP.


1 
Sec. 21. Investment in Allied Undertakings. - Subject to the requirements and
2 
restrictions as may be imposed by the Monetary Board under its existing rules and
3 
regulations, CBs may invest in equities of allied undertakings which may include the
4 
following:
5 
a) Banks, financial institutions and non-bank financial intermediaries;
6 
b) Warehousing and other post-harvest facilities;
7 
c) Fertilizer and agricultural chemical and pesticides distribution;
8 
d) Farm equipment distribution;
9 
e) Trucking and transportation of agricultural products;
10 
f) Marketing of agricultural products;
11 
g) Leasing;
12 
h) Automated teller machine (ATM) networks;
13 
i) Public transportation;
14 
j) Financial technology; and
15 
k) Other undertakings as may be determined by the Monetary Board.
16 
Sec. 22. Limitations on Lending Authority. - Except as the Monetary Board may
17 
otherwise prescribe, the direct indebtedness to CBs of any person, company,
18 
corporation, or firm, including the indebtedness of members of a partnership and
19 
association, for money borrowed, shall in no time exceed twenty five percent (25%)
20 
of unimpaired capital and surplus of the CB. However, the direct indebtedness
21 
mentioned shall exclude loans secured by obligations of the BSP; loans fully
22 
guaranteed by the Government as to the payment of principal and interest; loans to
23 
the extent covered by the hold-out on, or assignment of, deposits maintained in the
24 
lending CB and held in the Philippines; and other loans or credits as the Monetary
25 
Board may, from time to time, specify non-risk assets.
26 
CHAPTER VI
27 
CAPITALIZATION AND CAPITAL STRUCTURE
28 
Sec. 23. Capital Requirement for Cooperative Banks. - A CB shall have a
29 
minimum paid-up capital in such amount as may be required by the BSP. The BSP
30 
may prescribe rules and regulations on the types of shares a CB may issue, including
10


1 
the terms thereof and rights appurtenant thereto to determine compiiance with iaws
2 
and regulations governing capital and equity structure of banks: Provided, That CBs
3 
shall issue par value shares only.
4 
Sec. 24. Barrio Savings Fund (BSF), Barrio Guarantee Fund (BGF), Cooperative
5 
Development Loan Fund (CDLF), Cooperative Marketing Porgram (CMP), and other
6 
funds administered by CDA. - In order to augment the capitalization of CBs, the
7 
aforementioned funds collected or deducted by various CBs throughout the country
8 
from the loan proceeds of farmer borrowers in compiiance with P.D. 175, which are
9 
still floating and outstanding either as active or dormant accounts in the books of
10 
those banks, shaii be converted as capital of the CB located in the province where the
11 
depository banks of the BSF and BGF are iocated.
12 
Sec. 25. Samahang Nayon and Municipal Katipunan ng mga Samahang Nayon.
13 
- The Samahang Nayon (SN) and Municipai Katipunan ng mga Samahang Nayon
14 
(MKSN) which held common shares of CBs prior to the effectivity of R.A. No. 9520
15 
shall apply for conversion to cooperatives in order to maintain their status as reguiar
16 
members of CBs: Provided, That the CBs shaii exert efforts to inform and assist the
17 
SN and MKSN to convert within a period of three (3) years from the effectivity of this
18 
Act. Upon faiiure of the SN and MKSN to finaily convert to a cooperative within said
19 
period, the funds heid in the name of such SN and MKSN shall be considered as
20 
preferred shares and shaii remain as capitai of the CB.
21 
Sec. 26. Additional Source of Capital of the CBs. —The funds or common shares
22 
in CBs heid in the name of cooperatives whose certificates of registration have already
23 
been cancelled by the CDA and which failed to liquidate such funds or shares during
24 
its iiquidation shall remain as capital in said CBs and shall be treated as preferred
25 
shares.
26 
CHAPTER VII
27 
SUPERVISION
28 
Sec. 27. Supervision of Cooperative Banks. - All CBs shall be under the
29 
supervision of the BSP: Provided, however. That the CDA shall monitor the CBs'
30 
compiiance with cooperative iaws, ruies, and reguiations. With respect to the
11


1 
governance of the CBs, the provisions of the baking iaws, rules, and regulations shall
2 
prevail, notwithstanding Section 71 of R.A. No. 8791.
3 
Sec. 28. Promulgation of Guidelines. - The BSP and CDA may formulate
4 
guidelines to implement or clarify the provisions of the Act: Provided, That the BSP,
5 
as the regulator of banks, shall be the primary regulator of cooperative banks
6 
consistent with the provisions of R.A. No. 8791: Provided, further. That in order to
7 
minimize the burden of dually-regulated entities, the BSP shall, inconsultation with the
8 
CDA, shall in its promulgation of rules and regulations, to the extent allowed in banking
9 
and other relevant laws, and insofar as consistent with the BSP's exercise of
10 
supervisory and regulatory powers over banks, consider the requirements of this Act
11 
and the CDA for cooperatives in general.
12 
CHAPTER Vlll
13 
PRIVILEGES AND INCENTIVES
14 
Sec. 29. Privileges of Cooperative Banks. - CBs registered under this Act and
15 
the Cooperative Code shall have the following privileges and incentives:
16 
1. Those privileges and incentives accorded to cooperatives under the
17 
Cooperative Code and other prior laws including exemption from all
18 
national, city, provincial, municipal or barangay taxes, fees and charges of
19 
whatever nature and description: Provided, however. That when a CB has
20 
reached an undivided net savings of more than one hundred million pesos
21 
(P100,000,000.00), transactions to non-member will become taxable;
22 
2. The foreclosure of mortgages covering loans granted by CBs and executions
23 
of judgments thereon involving real properties levied upon by sheriff shall
24 
be exempt from the publications in newspapers where the total amount of
25 
loan, excluding interests due and unpaid, does not exceed one million pesos
26 
(P1,000,000.00) or such amount as the Monetary Board may prescribe as
27 
may be warranted by prevailing economic conditions. It shall be deemed
28 
sufficient publication in such cases where the notices of foreclosure and
29 
execution of judgment are posted in the most conspicuous areas such as
30 
the municipal building, the municipal public market, the CB, and the
12


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barangay hall where the land mortgaged is situated during the priod of sixty 
(60) days immediateiy preceding the pubiic auction or execution of 
judgment. Proof of pubiication as required herein shaii be accompiished via 
an affidavit of the sheriff or officer conducting the foreciosure saie or 
execution of judgment and shaii be attanched to the records of the case;
3. A CB shaii be aiiowed to foreciose iands mortgaged to it subject to the 
provisions of R.A. No. 6657, otherwise known as the '''Comprehensive 
Agrarian Reform Law of1988'. For agrarian iands foreciosed by a CB, the 
disposal of the same to another qualified beneficiary under R.A. No. 6657 
shaii be made through the same CB. Further, the amortization of the 
beneficiary in favor of the Department of Agrarian Reform (DAR) shaii be 
coursed through the servicing CB: Provided, however, That CBs shall be 
exempt from the landholding iimits as prescribed by the DAR or any other 
iaw requiring the same;
4. For CBs granted by the BSP with accreditation as Rurai Financiai Institution 
(RFI) under R.A. No. 10000, the following priviieges shaii be awarded:
a. Unrestricted branching rights to set-up agricuiture-oriented branches 
in unbanked municipaiities and predominantiy agricuiturai 
communities, subject to existing reguiations on minimum 
capitaiization for banks and the size of branch network;
b. Automatic eiigibiiity with the Phiiippine Guarantee Corporation (with 
respect to agricuiturai credit guarantee), Phiiippine Crop Insurance 
Corporation, and governmentai agencies providing services towards 
risk-mitigation in the agricuiturai sector;
c. Priority status as credit deiivery partner or conduit of government 
directed programs for agricuiturai projects through the Department 
of Agricuiture (DA) and other government agencies; and
d. Entitiement to participate free of charge in capabiiity-buiiding 
activities in agriculture lending such as the exchange of best-practice 
experiences, study tour, technoiogy transfer among ASEAN member 
states and other for a of internationai cooperation.
13


1 
5. Notwithstanding the provisions herein, privileges and incentives granted to
2 
rural banks pursuant to R.A. No. 7353 or the "RuralAct of1992", shall also
3 
be granted to cooperative banks duly registered under this Act.
4 
Sec. 30. Separability Clause. - If any provision of this Act or the application
5 
thereof to any person or circumstance is declared invalid or unconstitutional, the
6 
provisions and application to other persons and circumstances not affected thereby
7 
shall continue to be in full force and effect.
8 
Sec. 31. Repealing Clause. - All laws, executive orders, presidential decrees,
9 
presidential proclamations, letter of instruction, rules and regulations or parts thereof
10 
inconsistent with the provisions of this Act are hereby repealed or modified
11 
accordingly.
12 
Sec. 32. Effectivity. - This Act shall take effect fifteen (15) days after its
13 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
14