Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

4611

House Bill 'No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

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

EXPLANATORY NOTE

Cooperatives play a significant role in economic development, especially
in rural areas where the absence of large spending power does nat attract private
investment to harness local skills and resources that can uplift the local
economy's living standards besides exporting produce to distant customer
locations in cities.

Cooperatives of farmers enable consolidation of fragmented land,
investment in mechanization and imigation, better bargaining power to buy seeds
and fertilizers 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.

Due to reasons cited above, the expeditious approval of this bill is
eamestly sought.

DIOSDADO PAI ARROYO a a ARROYO
Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

ie 4611

House Bill'No.

introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
REORGANIZING AND STRENGTHENING THE COGPERATIVE
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,”

SECTION [4] 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
fulfillment of the mandate in Section 15, Article X11 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 primarily 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 conditionality 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.”

SECTION [2] 3. Creation of the Cooperative 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.

SECTION [3] 4. Powers, Functions and Responsibilities. ~ The
[Authority] CDAP shall have the following powers, functions and responsibilities:

[(@) 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 concem for agrarian reform, fishery and
economically depressed sectors;

(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
tegister 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 financiat statements, duly audited by a certified public accountant,
and general information sheets:

(9) Order the cancellation after due notice and hearing of the cooperative’s
certificate of registration for non-compkance 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;

{) Impose and collect reasonable fees and charges in connection with the
registration of cooperatives;

{k) Administer all grants and donations coursed through the Govemment
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,

{) Formulate and adopt continuing policy initiatives consultation with the
cooperative sector through public hearings;

{m) Adopt rules and regulatons for the conduct of its internal operations;

{n) Submit an annua! 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 seriousty interrupts any
hearing or inquiry with a fine of not more than Five Hundred Pesos

we


(P500.00) or imprisonment of not more than ten (10) 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, AND/OR
THE CANCELLATION OF THE CERTIFICATE OF REGISTRATION OF
ANY COOPERATIVE REGISTERED BY THE CDAP, OR SUSPEND
ANY OFFICER OR 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 COOPERATIVES THAT WOULD PROVIDE THE MEMBERS OF
THE COOPERATIVES. WITH THE ENTREPRENEURIAL
CAPABILITIES, MANAGERIAL EXPERTISE, AND TECHNICAL
SKIILLS 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, REGULATORY ANO SUPERVISORY FUNCTIONS:


(N) SUBMIT AN ANNUAL REPORT TO THE PRESIDENT AND THE
CONGRESS ON THE STATE OF THE COOPERATIVE MOVEMENT;

(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 PROVISIONS 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 MISCONDUCT IN THE
PRESENCE OF THE CDAP BY IMPRISONMENT OF NOT MORE THAN
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.

SECTION [4] 5. Governing Body. — The Authority shall be governed by 4
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 shail 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-officio 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-vating 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 IN THE
BOARD SHALL BE FILLED BY APPOINTMENT BY THE PRESIDENT IN
ACCORDANCE WITH THE MEMBERSHIP ALLOCATION SET FORTH IN THIS
SECTION; PROVIDED, THAT A MEMBER SO APPOINTED SHALL SERVE
ONLY FOR THE UNEXPIRED TERM.

SECTION [5] 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 barn Filipino citizen of legat 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, goverment agency, of non-govemment
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 goverment 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.

SECTION 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 of 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.)

SECTION 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 GOVERNORS AND SHALL ACY
AS THE CHIEF OPERATING OFFICER. HE/SHE SHALL ASSIST THE
ADMINISTRATOR IN THE PERFORMANCE OF NIS/HER FUNCTIONS.

SECTION [7] 9. Organization of the 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.

SECTION [8] 10. Mediation and Concifiation. — Upon request of either
or both parties, the Authority shall mediate and concitiate 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.

SECTION [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 Agricutture:

{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 pattem, 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 XI, 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 1/4) 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 taws.

SECTION [10] 42. Transfer of Funds and Programs. — The Cooperative
Development Loan Fund created under Presidentia! 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 concemed; 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.

SECTION [11] 13. Cooperatives in the Education 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-
format education.

The role of non-government organizations, not registered as cooperatives
but duly registered under Philippine laws and engaged in cooperative promation,
organization, research and education, shall be recognized. The Authority may
accredit such nongovernment 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.

SECTION [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 concem 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.

SECTION [13] 15. Rufe-Making Authority. — The [Authority] GDAP 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 (15) 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.

SECTION {14] 16. Prohibitions. - No organization shall be allowed to
use the title "cooperative" in its name unless it follows all generally accepted
cooperative principles, applicable cooperative laws, and is duly registered under
this Act, Provided, That organizations which have used the word “cooperative” as
part of their nomenclature but which do not qualify as cooperatives under the
provisions of this 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.

SECTION [15] 17. information Campaign. - The Cooperative
Development Authority is mandated to conduct a six-month information
campaign on the provisions of this Act, beginning three (3) months from the
effectivity of this Act.

SECTION [16] 18. Appropriations, — The funds needed to cary 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 XI! under the current General
Appropriations Act in addition to the appropriations of other
departments/agencies/funds whose functions/programs 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 be 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.

SECTION [17] 19. Transitory Provisions. - [All cooperatives registered
under Presidential Decree Nos. 175 and 775, and Executive Order No. 398 shalt
be deemed registered with the Cooperative Development Authority; Provided,
however, That they shall submit to the nearest Cooperative Development
Authority 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, shail
be given three (3) years within which to qualify and register with the Authority;
Provided, finally, 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 HERESY 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, BYLAWS, 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 8E PROHIBITED FROM USING THE TERM
“COOPERATIVE” IN THEIR REGISTERED ANO BUSINESS NAME.

SECTION [18] 20. Repeais. ~ 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. 898 ARE HEREBY REPEALED OR
MODIFIED ACCORDINGLY. IN CASE OF DOUBT, THE SAME SHALL BE
RESOLVED IN FAVOR OF THE COOPERATIVES.

SECTION [19} 21. Separabitity Clause. ~ If for any cause any part of this,
Act is declared unconstitutional, the rest of the provisions shall remain in force
and effect.

SECTION [20] 22. Effectivity Clause. — This Act shall take effect fifteen
(15) days after its publication in the Official Gazette or in a NATIONAL
newspaper of general circulation.

Approved,