Republic Act No. 9520 February 17, 2009 AN ACT AMENDIN T!E C""#ERATI$E C"DE "F T!E #!

I%I##INE& T" 'E (N")N A& T!E *#!I%I##INE C""#ERATI$E C"DE "F 200+*

'e it e,acte- by t.e &e,ate a,- !ou/e o0 Repre/e,tati1e/ o0 t.e #.ilippi,e/ i, Co,2re// a//e3ble-4 &ectio, 1. Article/ 1, 2, 5, 6 a,- 5 o0 C.apter 1 o, e,eral Co,cept/ a,- #ri,ciple/ o0 Republic Act No. 795+, ot.er8i/e 9,o8, a/ t.e *Cooperati1e Co-e o0 t.e #.ilippi,e/,* are .ereby a3e,-e- to rea- a/ 0ollo8/4 C!A#TER I ENERA% C"NCE#T& AND #RINCI#%E& *ARTIC%E 1. Title. : T.i/ Act /.all be 9,o8, a/ t.e *#.ilippi,e Cooperati1e Co-e o0 200+*. *ART. 2. Declaratio, o0 #olicy.: It i/ t.e -eclare- policy o0 t.e &tate to 0o/ter t.e creatio, a,- 2ro8t. o0 cooperati1e/ a/ a practical 1e.icle 0or pro3oti,2 /el0:relia,ce a,- .ar,e//i,2 people po8er to8ar-/ t.e attai,3e,t o0 eco,o3ic -e1elop3e,t a,- /ocial ;u/tice. T.e &tate /.all e,coura2e t.e pri1ate /ector to u,-erta9e t.e actual 0or3atio, a,- or2a,i<atio, o0 cooperati1e/ a,- /.all create a, at3o/p.ere t.at i/ co,-uci1e to t.e 2ro8t. a,- -e1elop3e,t o0 t.e/e cooperati1e/. *To8ar- t.i/ e,-, t.e o1er,3e,t a,- all it/ bra,c.e/, /ub-i1i/io,/, i,/tru3e,talitie/ a,- a2e,cie/ /.all e,/ure t.e pro1i/io, o0 tec.,ical 2ui-a,ce, 0i,a,cial a//i/ta,ce a,- ot.er /er1ice/ to e,able /ai- cooperati1e/ to -e1elop i,to 1iable a,- re/po,/i1e eco,o3ic e,terpri/e/ a,- t.ereby bri,2 about a /tro,2 cooperati1e 3o1e3e,t t.at i/ 0ree 0ro3 a,y co,-itio,/ t.at 3i2.t i,0ri,2e upo, t.e auto,o3y or or2a,i<atio,al i,te2rity o0 cooperati1e/. *Furt.er, t.e &tate reco2,i<e/ t.e pri,ciple o0 /ub/i-iarity u,-er 8.ic. t.e cooperati1e /ector 8ill i,itiate a,re2ulate 8it.i, it/ o8, ra,9/ t.e pro3otio, a,- or2a,i<atio,, trai,i,2 a,- re/erac., au-it a,- /upport /er1ice/ relati1e to cooperati1e/ 8it. 2o1er,3e,t a//i/ta,ce 8.ere ,ece//ary. *ART. 5. e,eral Co,cept/. : A cooperati1e i/ a, auto,o3ou/ a,- -uly re2i/tere- a//ociatio, o0 per/o,/, 8it. a co33o, bo,- o0 i,tere/t, 8.o .a1e 1olu,tarily ;oi,e- to2et.er to ac.ie1e t.eir /ocial, eco,o3ic, a,- cultural ,ee-/ a,- a/piratio,/ by 3a9i,2 e=uitable co,tributio,/ to t.e capital re=uire-, patro,i<i,2 t.eir pro-uct/ a,/er1ice/ a,- accepti,2 a 0air /.are o0 t.e ri/9/ a,- be,e0it/ o0 t.e u,-erta9i,2 i, accor-a,ce 8it. u,i1er/ally accepte- cooperati1e pri,ciple/. *ART. 6. Cooperati1e #ri,ciple/. : E1ery cooperati1e /.all co,-uct it/ a00air/ i, accor-a,ce 8it. Filipi,o culture, 2oo- 1alue/ a,- e>perie,ce a,- t.e u,i1er/ally accepte- pri,ciple/ o0 cooperatio, 8.ic. i,clu-e, but are ,ot li3ite- to, t.e 0ollo8i,24 *?1@ $olu,tary a,- "pe, Me3ber/.ip : Cooperati1e/ are 1olu,tary or2a,i<atio,/, ope, to all per/o,/ able to u/e t.eir /er1ice/ a,- 8illi,2 to accept t.e re/po,/ibilitie/ o0 3e3ber/.ip, 8it.out 2e,-er, /ocial, racial, cultural, political or reli2iou/ -i/cri3i,atio,. *?2@ De3ocrati1e Me3ber Co,trol : Cooperati1e/ are -e3ocratic or2a,i<atio,/ t.at are co,trolle- by t.eir 3e3ber/ 8.o acti1ely participate i, /etti,2 t.eir policie/ a,- 3a9i,2 -eci/io,/. Me, a,- 8o3e, /er1i,2 a/ electe- repre/e,tati1e/, -irector/ or o00icer/ are accou,table to t.e 3e3ber/.ip. I, pri3ary cooperati1e/, 3e3ber/ .a1e e=ual 1oti,2 ri2.t/ o0 o,e:3e3ber, o,e:1ote. Cooperati1e/ at ot.er le1el/ are or2a,i<e- i, t.e /a3e -e3ocratic 3a,,er. *?5@ Me3ber Eco,o3ic #articipatio, : Me3ber/ co,tribute e=uitably to, a,- -e3ocratically co,trol, t.e capital o0 t.eir cooperati1e/. At lea/t part o0 t.at capital i/ t.e co33o, property o0 t.e cooperati1e. T.ey /.all recei1e li3ite- co3pe,/atio, or li3ite- i,tere/t, i0 a,y, o, capital /ub/cribe- a,- pai- a/ a co,-itio, o0 3e3ber/.ip. Me3ber/ allocate /urplu/e/ 0or a,y or all o0 t.e 0ollo8i,2 purpo/e/4 -e1elopi,2 t.e cooperati1e by /etti,2 up

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re/er1e/, part o0 8.ic. /.oul- at lea/t be i,-i1i/ibleA be,e0itti,2 3e3ber/ i, proportio, to t.eir parto,a2e o0 t.e cooperati1eB/ bub/i,e//A a,-, /upporti,2 ot.er acti1itie/ appro1e- by t.e 3e3ber/.ip. *?6@ Auto,o3y a,- I,-epe,-e,ce : Cooperati1e/ are auto,o3ou/, /el0:.elp or2a,i<atio,/ co,trolle- by t.eir 3e3ber/. I0 t.ey e,ter i,to a22ree3e,t/ 8it. ot.er or2a,i<atio,/, i,clu-i,2 2o1er,3e,t, or rai/e capital 0ro3 e>ter,al /ource/, t.ey /.all -o /o o, ter3/ t.at e,/ure -e3ocratic co,trol o0 t.eir 3e3ber/ a,- 3ai,tai, t.eir cooperati1e auto,o3y. *?5@ E-ucatio,, Trai,i,2 a,- I,0or3atio, : Cooperati1e/ /.all pro1i-e e-ucatio, a,- trai,i,2 0or t.eir 3e3ber/, electe- a,- appoi,te- repre/e,tati1e/, 3a,a2er/, a,- e3ployee/, /o t.at t.ey ca, co,tribute e00ecti1ely a,e00icie,tly to t.e -e1elop3e,t o0 t.eir cooperati1e/. *?7@ Cooperatio, A3o,2 Cooperati1e/ : Cooperati1e/ /er1e t.eir 3e3ber/ 3o/t e00ecti1ely a,- /tre,2t.e, t.e cooperati1e 3o1e3e,t by 8or9i,2 to2et.er t.rou2. local, ,atio,al, re2io,al a,- i,ter,atio,al /tructure/. ?7@ Co,cer, 0or Co33u,ity : Cooperati1e/ 8or9 0or t.e /u/tai,able -e1elop3e,t o0 t.eir co33u,itie/ t.rou2. policie/ appro1e- by t.eir 3e3ber/. *ART. 5. De0i,itio, o0 Ter3/. T.e 0ollo8i,2 ter3/ /.all 3ea,4 *?1@ Me3ber i,clu-e/ a per/o, eit.er ,atural or ;uri-ical 8.o a-.eri,2 to t.e pri,ciple/ /et 0ort. i, t.i/ Co-e a,- i, t.e Article/ o0 Cooperati1e, .a/ bee, a-3itte- by t.e cooperati1e a/ 3e3berA *?2@ e,eral A//e3bly /.all 3ea, t.e 0ull 3e3ber/.ip o0 t.e cooperati1e -uly a//e3ble- 0or t.e purpo/e o0 e>erci/i,2 all t.e ri2.t/ a,- per0or3i,2 all t.e obli2atio,/ pertai,i,2 to cooperati1e/, a/ pro1i-e- by t.i/ Co-e, it/ article/ o0 cooperatio, a,- byla8/4 #ro1i-e-, T.at 0or cooperati1e/ 8it. ,u3erou/ a,- -i/per/e3e3ber/.ip, t.e 2e,eral a//e3bly 3ay be co3po/e- o0 -ele2ate/ electe- by eac. /ector, c.apter or -i/trict o0 t.e cooperati1e i, accor-a,ce 8it. t.e rule/ a,- re2ulatio,/ o0 t.e Cooperati1e De1elop3e,t Aut.orityA *?5@ 'oar- o0 Director/ /.all 3ea, t.at bo-y e,tru/te- 8it. t.e 3a,a2e3e,t o0 t.e a00air/ o0 t.e cooperati1e u,-er it/ article/ o0 cooperatio, a,- byla8/A *?6@ Co33ittee /.all re0er to a,y bo-y e,tru/te- 8it. /peci0ic 0u,ctio,/ a,- re/po,/ibilitie/ u,-er t.e byla8/ or re/olutio, o0 t.e 2e,eral a//e3bly or t.e boar- o0 -irector/A *?5@ Article/ o0 Cooperatio, 3ea,/ t.e article/ o0 cooperatio, re2i/tere- u,-er t.i/ Co-e a,- i,clu-e/ a re2i/tere- a3e,-3e,t t.ereo0A *?7@ 'yla8/ 3ea,/ t.e byla8/ re2i/tere- u,-er t.i/ Co-e a,- i,clu-e/ a,y re2i/tere- a3e,-3e,t t.ereo0A *?7@ Re2i/tratio, 3ea,/ t.e operati1e act 2ra,ti,2 ;uri-ical per/o,ality to a propo/e- cooperati1e a,- i/ e1i-e,ce- by a certi0icate o0 re2i/tratio,A *?+@ Cooperati1e De1elop3e,t Aut.ority re0er/ to t.e 2o1er,3e,t a2e,cy i, c.ar2e o0 t.e re2i/tratio, a,re2ulatio, o0 cooperati1e/ a/ /uc. .erei,a0ter re0erre- to / t.e Aut.orityA *?9@ C,i1er/ally Accepte- #ri,ciple/ 3ea,/ t.at bo-y o0 cooperati1e pri,ciple/ a-.ere- to 8orl-8i-e by cooperati1e/A *?10@ Repre/e,tati1e A//e3bly 3ea,/ t.e 0ull 3e3ber/.ip o0 a bo-y o0 repre/e,tati1e/ electe- by eac. o0 t.e /ector/, c.apter or -i/trict o t.e cooperati1e -uly a//e3ble- 0or t.e purpo/e o0 e>erci/i,2 /uc. po8er/ la80ully -ele2ate- u,to t.e3 by t.e 2e,eral a//e3bly i, accor-a,ce 8it. it/ byla8/A *?11@ "00icer/ o0 t.e Cooperati1e /.all i,clu-e t.e 3e3ber/ o0 t.e boar- o0 -irector/, 3e3ber/ o0 t.e -i00ere,t co33ittee create- by t.e 2e,eral a//e3bly, 2e,eral 3a,a2er or c.ie0 e>ecuti1e o00icer, /ecretary, trea/urer a,- 3e3ber/ .ol-i,2 ot.er po/itio,/ a/ 3ay be pro1i-e- 0or i, t.eir byla8/A

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*?12@ &ocial Au-it i/ a proce-ure 8.erei, t.e cooperati1e a//e//e/ it/ /ocial i3pact a,- et.ical per0or3a,ce 1i/:DE :1i/ it/ /tate- 3i//io,, 1i/io,, 2oal/ a,- co-e o0 /ocial re/po,/ibility 0or cooperati1e/ to be e/tabli/.eby t.e Aut.ority i, co,/ultatio, 8it. t.e cooperati1e /ector. It e,able/ t.e cooperati1e to -e1elop a proce// 8.ereby it ca, accou,t 0or it/ /ocial per0or3a,ce a,- e1aluate it/ i3pact i, t.e co33u,ity a,- be accou,table 0or it/ -eci/io,/ a,- actio,/ to it/ re2ular 3e3ber/A *?15@ #er0or3a,ce Au-it /.all re0er to a, au-it o, t.e e00icie,cy a,- e00ecti1e,e// o0 t.e cooperati1e a/ a 8.oleA it/ 3a,a2e3e,t a,- o00icer/A a,- it/ 1ariou/ re/po,/ibility ce,ter/ a/ ba/i/ 0or i3pro1i,2 i,-i1i-ual tea3 or o1erall per0or3a,ce a,- 0or ob;ecti1ely i,0or3i,2 t.e 2e,eral 3e3ber/.ip o, /uc. per0or3a,ceA *?16@ A &i,2le:%i,e or &i,2le:#urpo/e Cooperati1e /.all i,clu-e cooperati1e u,-erta9i,2 acti1itie/ 8.ic. are relate- to it/ 3ai, li,e o0 bu/i,e// or purpo/eA *?15@ &er1ice Cooperati1e/ are t.o/e 8.ic. pro1i-e a,y type o0 /er1ice to it/ 3e3ber/, i,clu-i,2 but ,ot li3ite- to, tra,/port, i,0or3atio, a,- co33u,icatio,, i,/ura,ce, .ou/i,2, electric, .ealt. /er1ice/, e-ucatio,, ba,9i,2, a,- /a1i,2/ a,- cre-itA *?17@ &ub/i-iary Cooperati1e re0er/ to t.ree or 3ore pri3ary cooperati1e/, -oi,2 t.e /a3e li,e o0 bu/i,e//, or2a,i<e- at t.e 3u,icipal, pro1i,cial, city, /pecial 3etropolita, political /ub-i1i/io,, or eco,o3ic <o,e/ create- by la8, re2i/tere- 8it. t.e Aut.ority to u,-erta9e bu/i,e// acti1itie/ i, /upport o0 it/ 3e3ber: cooperati1e/.* &ec. 2. Article/ 7, 7, 9, 10, 11, 12, 15, 16, 17, 17, 1+, 20, 21, 25, 26 a,- 25 o0 C.apter II o, "r2a,i<atio, a,Re2i/tratio, o0 t.e /a3e Co-e are .ereby a3e,-e- to rea- a/ 0ollo8/4 C!A#TER II "R ANIFATI"N AND RE I&TRATI"N *ART. 7. #urpo/e/ o0 Cooperati1e/. A cooperati1e 3ay be or2a,i<e- a,- re2i/tere- 0or a,y or all o0 t.e 0ollo8i,2 purpo/e/4 *?1@ To e,coura2e t.ri0t a,- /a1i,2/ 3obili<atio, a3o,2 t.e 3e3ber/A *?2@ To 2e,erate 0u,-/ a,- e>te,- cre-it to t.e 3e3ber/ 0or pro-ucti1e a,- pro1i-e,t purpo/e/A *?5@ To e,coura2e a3o,2 3e3ber/ /y/te3atic pro-uctio, a,- 3ar9eti,2A *?6@ To pro1i-e 2oo-/ a,- /er1ice/ a,- ot.er re=uire3e,t/ to t.e 3e3ber/A *?5@ To -e1elop e>perti/e a,- /9ill/ a3o,2 it/ 3e3ber/A *?7@ To ac=uire la,-/ a,- pro1i-e .ou/i,2 be,e0it/ 0or t.e 3e3ber/A *?7@ To i,/ure a2ai,/t lo//e/ o0 t.e 3e3ber/A *?+@ To pro3ote a,- a-1a,ce t.e eco,o3ic, /ocial a,- e-ucatio,al /tatu/ o0 t.e 3e3ber/A *?9@ To e/tabli/., o8,, lea/e or operate cooperati1e ba,9/, cooperati1e 8.ole/ale a,- retail co3ple>e/, i,/ura,ce a,- a2riculturalGi,-u/trial proce//i,2 e,terpri/e/, a,- public 3ar9et/A *?10@ To coor-i,ate a,- 0acilitate t.e acti1itie/ o0 cooperati1e/A *?11@ To a-1ocate 0or t.e cau/e o0 t.e cooperati1e 3o1e3e,t/A *?12@ To e,/ure t.e 1iability o0 cooperati1e/ t.rou2. t.e utili<atio, o0 ,e8 tec.,olo2ie/A *?15@ To e,coura2e a,- pro3ote /el0:.elp or /el0:e3ploy3e,t a/ a, e,2i,e 0or eco,o3ic 2ro8t. a,- po1erty alle1iatio,A a,Page1

*?16@ To u,-erta9e a,y a,- all ot.er acti1itie/ 0or t.e e00ecti1e a,- e00icie,t i3ple3e,tatio, o0 t.e pro1i/io,/ o0 t.i/ Co-e. *ART. 7. "b;ecti1e/ a,- oal/ o0 a Cooperati1e. T.e pri3ary ob;ecti1e o0 e1ery cooperati1e i/ to .elp i3pro1e t.e =uality o0 li0e o0 it/ 3e3ber/. To8ar-/ t.i/ e,-, t.e cooperati1e /.all ai3 to4 *?a@ #ro1i-e 2oo-/ a,- /er1ice/ to it/ 3e3ber/ to e,able t.e3 to attai, i,crea/e- i,co3e, /a1i,2/, i,1e/t3e,t/, pro-ucti1ity, a,- purc.a/i,2 po8er, a,- pro3ote a3o,2 t.e3/el1e/ e=uitable -i/tributio, o0 ,et /urplu/ t.rou2. 3a>i3u3 utili<atio, o0 eco,o3ie/ o0 /cale, co/t:/.ari,2 a,- ri/9:/.ari,2A *?b@ #ro1i-e opti3u3 /ocial a,- eco,o3ic be,e0it/ to it/ 3e3ber/A *?c@ Teac. t.e3 e00icie,t 8ay/ o0 -oi,2 t.i,2/ i, a cooperati1e 3a,,erA *?-@ #ropa2ate cooperati1e practice/ a,- ,e8 i-ea/ i, bu/i,e// a,- 3a,a2e3e,tA *?e@ Allo8 t.e lo8er i,co3e a,- le// pri1ile2e- 2roup/ to i,crea/e t.eir o8,er/.ip i, t.e 8ealt. o0 t.e ,atio,A a,*?0@ Cooperate 8it. t.e 2o1er,3e,t, ot.er cooperati1e/ a,- people:orie,te- or2a,i<atio,/ to 0urt.er t.e attai,3e,t o0 a,y o0 t.e 0ore2oi,2 ob;ecti1e/. *ART. +. Cooperati1e/ Not i, Re/trai,t o0 Tra-e. No cooperati1e or 3et.o- or act t.ereo0 8.ic. co3plie/ 8it. t.i/ Co-e /.all be -ee3e- a co,/piracy or co3bi,atio, i, re/trai,t o0 tra-e or a, ille2al 3o,opoly, or a, atte3pt to le//e, co3petitio, or 0i> price/ arbitrarily i, 1iolatio, o0 a,y la8/ o0 t.e #.ilippi,e/. *ART. 9. Cooperati1e #o8er/ a,- Capacitie/. A cooperati1e re2i/tere- u,-er t.i/ Co-e /.all .a1e t.e 0ollo8i,2 po8er/, ri2.t/ a,- capacitie/4 *?1@ To t.e e>clu/i1e u/e o0 it/ re2i/tere- ,a3e, to /ue a,- be /ue-A *?2@ "0 /ucce//io,A *?5@ To a3e,- it/ article/ o0 cooperatio, i, accor-a,ce 8it. t.e pro1i/io,/ o0 t.i/ Co-eA *?6@ To a-opt byla8/ ,ot co,trary to la8, 3oral/ or public policy, a,- to a3e,- a,- repeal t.e /a3e i, accor-a,ce 8it. t.i/ Co-eA *?5@ To purc.a/e, recei1e, ta9e or 2ra,t, .ol-, co,1ey, /ell, lea/e, ple-2e, 3ort2a2e, a,- ot.er8i/e -eal 8it. /uc. real a,- per/o,al property a/ t.e tra,/actio, o0 t.e la80ul a00air/ o0 t.e cooperati1e 3ay rea/o,ably a,,ece//arily re=uire, /ub;ect to t.e li3itatio,/ pre/cribe- by la8 a,- t.e Co,/titutio,A *?7@ To e,ter i,to -i1i/io,, 3er2er or co,/oli-atio,, a/ pro1i-e- i, t.i/ Co-eA *?7@ To 0or3 /ub/i-iary cooperati1e/ a,- ;oi, 0e-eratio,/ or u,io,/, a/ pro1i-e- i, t.i/ Co-eA *?+@ To a1ail o0 loa,/, be e,title- to cre-it a,- to accept a,- recei1e 2ra,t/, -o,atio,/ a,- a//i/ta,ce 0ro3 0orei2, a,- -o3e/tic /ource/, /ub;ect to t.e co,-itio,/ o0 /ai- loa,/, cre-it/, 2ra,t/, -o,atio,/ or a//i/ta,ce t.at 8ill ,ot u,-er3i,e t.e auto,o3y o0 t.e cooperati1e. T.e Aut.ority, upo, 8ritte, re=ue/t, /.all pro1i-e ,ece//ary a//i/ta,ce i, t.e -ocu3e,tary re=uire3e,t/ 0or t.e loa,/, cre-it, 2ra,t/, -o,atio,/ a,- ot.er 0i,a,cial /upportA *?9@ To a1ail o0 pre0ere,tial ri2.t/ 2ra,te- to cooperati1e/ u,-er Republic Act No. 7170, ot.er8i/e 9,o8, a/ t.e %ocal o1er,3e,t Co-e, a,- ot.er la8/, particularly t.o/e i, t.e 2ra,t o0 0ra,c.i/e/ to e/tabli/., co,/truct, operate a,- 3ai,tai, 0errie/, 8.ar1e/, 3ar9et/ or /lau2.ter.ou/e/ a,- to lea/e public utilitie/, i,clu-i,2 acce// to e>te,/io, a,- o,:/ite re/earc. /er1ice/ a,- 0acilitie/ relate- to a2riculture a,- 0i/.ery acti1itie/A

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*?10@ To or2a,i<e a,- operate /c.ool/ i, accor-a,ce 8it. Republic Act No. 9155, E-ucatio, Act o0 2001 a,- ot.er perti,e,t la8/A a,-

o1er,a,ce o0 'a/ic

*?11@ To e>erci/e /uc. ot.er po8er/ 2ra,te- by t.i/ Co-e or ,ece//ary to carry out it/ purpo/e or purpo/e/ a/ /tate- i, it/ Article/ o0 cooperatio,. *ART. 10. "r2a,i<i,2 a #ri3ary Cooperati1e. Fi0tee, ?15@ or 3ore ,atural per/o,/ 8.o are Filipi,o citi<e,/, o0 le2al a2e, .a1i,2 a co33o, bo,- o0 i,tere/t a,- are actually re/i-i,2 or 8or9i,2 i, t.e i,te,-e- area o0 operatio,, 3ay or2a,i<e a pri3ary cooperati1e u,-er t.i/ Co-e4 #ro1i-e-, T.at a pro/pecti1e 3e3ber o0 a pri3ary cooperati1e 3u/t .a1e co3plete- a #re:Me3ber/.ip E-ucatio, &e3i,ar ?#ME&@. *A,y ,e8ly or2a,i<e- pri3ary cooperati1e 3ay be re2i/tere- a/ 3ultipurpo/e cooperati1e o,ly a0ter co3plia,ce 8it. t.e 3i,i3u3 re=uire3e,t/ 0or 3ultipurpo/e cooperati1e/ to be /et by t.e Aut.ority. A /i,2le: purpo/e cooperati1e 3ay tra,/0or3 i,to a 3ultipurpo/e or 3ay create /ub/i-iarie/ o,ly a0ter at lea/t t8o ?2@ year/ o0 operatio,/. *ART. 11. Eco,o3ic &ur1ey. : E1ery 2roup o0 i,-i1i-ual/ or cooperati1e/ i,te,-i,2 to 0or3 a cooperati1e u,-er t.i/ Co-e /.all /ub3it to t.e Aut.ority a 2e,eral /tate3e,t -e/cribi,2, a3o,2 ot.er/ t.e /tructure a,purpo/e/ o0 t.e propo/e- cooperati1e4 #ro1i-e-, T.at t.e /tructure a,- actual /ta00i,2 patter, o0 t.e cooperati1e /.all i,clu-e a boo99eeperA #ro1i-e-, 0urt.er, T.at t.ey /.all ,ot be allo8e- to operate 8it.out t.e ,ece//ary per/o,,el a,- /.all al/o /ub3it a, eco,o3ic /ur1ey, i,-icati,2 t.erei, t.e area o0 operatio,, t.e /i<e o0 3e3ber/.ip, a,- ot.er perti,e,t -ata i, a 0or3at pro1i-e- by t.e Aut.ority. *ART. 12. %iability. A cooperati1e -uly re2i/tere- u,-er t.i/ Co-e /.all .a1e li3ite- liability. *ART. 15. Ter3. A cooperati1e /.all e>i/t 0or a perio- ,ot e>cee-i,2 0i0ty ?50@ year/ 0ro3 t.e -ate o0 re2i/tratio, u,le// /oo,er -i//ol1e or u,le// /ai- perio- i/ e>te,-e-. T.e cooperati1e ter3, a/ ori2i,ally /tatei, t.e article/ o0 cooperatio,, 3ay be e>te,-e- 0or perio-/ ,ot e>cee-i,2 0i0ty ?50@ year/ i, a,y /i,2le i,/ta,ce by a, a3e,-3e,t o0 t.e article/ o0 cooperatio,, i, accor-a,ce 8it. t.i/ Co-e4 #ro1i-e-, T.at ,o e>te,/io, ca, be 3a-e earlier t.a, 0i1e ?5@ year/ prior to t.e ori2i,al or /ub/e=ue,t e>piry -ateG-ate/ u,le// t.ere are ;u/ti0iable rea/o,/ 0or a, earlier e>te,/io, a/ 3ay be -eter3i,e- by t.e Aut.ority. *ART. 16. Article/ o0 Cooperatio,. ?1@ All cooperati1e/ applyi,2 0or re2i/tratio, /.all 0ile 8it. t.e Aut.ority t.e article/ o0 cooperatio, 8.ic. /.all be /i2,e- by eac. o0 t.e or2a,i<er/ a,- ac9,o8le-2e- by t.e3 i0 ,atural per/o,/, a,- by t.e c.airper/o,/ or /ecretarie/, i0 ;uri-ical per/o,/, be0ore a ,otary public. *?2@ T.e article/ o0 cooperatio, /.all /et 0ort.4 *?a@ T.e ,a3e o0 t.e cooperati1e 8.ic. /.all i,clu-e t.e 8or- cooperati1eA *?b@ T.e purpo/e or purpo/e/ a,- /cope o0 bu/i,e// 0or 8.ic. t.e cooperati1e i/ to be re2i/tere-A *?c@ T.e ter3 o0 e>i/te,ce o0 t.e cooperati1eA *?-@ T.e area o0 operatio, a,- t.e po/tal a--re//e/ o0 it/ pri,cipal o00iceA *?e@ T.e ,a3e/, ,atio,ality, a,- t.e po/tal a--re//e/ o0 t.e re2i/tra,t/A *?0@ T.e co33o, bo,- o0 3e3ber/.ipA *?2@ T.e li/t o0 ,a3e/ o0 t.e -irector/ 8.o /.all 3a,a2e t.e cooperati1eA a,*?.@ T.e a3ou,t o0 it/ /.are capital, t.e ,a3e/ a,- re/i-e,ce/ o0 it/ co,tributor/ a,- a /tate3e,t o0 8.et.er t.e cooperati1e i/ pri3ary, /eco,-ary or tertiary i, accor-a,ce 8it. Article 25 .ereo0. *?5@ T.e article/ o0 cooperatio, 3ay al/o co,tai, a,y ot.er pro1i/io,/ ,ot i,co,/i/te,t 8it. t.i/ Co-e or a,y relate- la8. Page1

*?6@ Four ?6@ copie/ eac. o0 t.e propo/e- article/ o0 cooperatio,, byla8/, a,- t.e 2e,eral /tate3e,t re=uireu,-er Article 11 o0 t.i/ Co-e /.all be /ub3itte- to t.e Aut.ority. *?5@ No cooperati1e, ot.er t.a, a cooperati1e u,io, a/ -e/cribe- u,-er Article 25 .ereo0, /.all be re2i/tereu,le// t.e article/ o0 cooperatio, i/ acco3pa,ie- 8it. t.e bo,-/ o0 t.e accou,table o00icer/ a,- a /8or, /tate3e,t/ o0 t.e trea/urer electe- by t.e /ub/criber/ /.o8i,2 t.at at lea/t t8e,ty:0i1e per ce,tu3 ?25H@ o0 t.e aut.ori<e- /.are capital .a/ bee, /ub/cribe- a,- at lea/t t8e,ty:0i1e per ce,tu3 ?25H@ o0 t.e total /ub/criptio, .a/ bee, pai-4 #ro1i-e-, T.at i, ,o ca/e /.all t.e pai-:up /.are capital be le// t.a, Fi0tee, t.ou/a,- pe/o/ ?#15,000.00@. *T.e Aut.ority /.all perio-ically a//e// t.e re=uire- pai-:up /.are capital a,- 3ay i,crea/e it e1ery 0i1e ?5@ year/ 8.e, ,ece//ary upo, co,/ultatio, 8it. t.e cooperati1e /ector a,- t.e Natio,al Eco,o3ic a,De1elop3e,t Aut.ority ?NEDA@. *ART. 15. 'yla8/. ?1@ Eac. cooperati1e to be re2i/tere- u,-er t.i/ Co-e /.all a-opt byla8/ ,ot i,co,/i/te,t 8it. t.e pro1i/io,/ o0 t.i/ Co-e. T.e byla8/ /.all be 0ile- at t.e /a3e ti3e a/ t.e article/ o0 cooperatio,. *?2@ T.e byla8/ o0 eac. cooperati1e /.all pro1i-e4 *?a@ T.e =uali0icatio,/ 0or a-3i//io, to 3e3ber/.ip a,- t.e pay3e,t to be 3a-e or i,tere/t to be ac=uire- a/ a co,-itio,/ 0or t.e e>erci/e o0 t.e ri2.t o0 3e3ber/.ipA *?b@ T.e ri2.t/ a,- liabilitie/ o0 3e3ber/.ipA *?c@ T.e circu3/ta,ce/ u,-er 8.ic. 3e3ber/.ip i/ ac=uire-, 3ai,tai,e- a,- lo/tA *?-@ T.e proce-ure to be 0ollo8e- i, ca/e/ o0 ter3i,atio, o0 3e3ber/.ipA *?e@ T.e co,-itio,/ u,-er 8.ic. t.e tra,/0er o0 a /.are or i,tere/t o0 t.e 3e3ber/ /.all be per3itte-A *?0@ T.e rule/ a,- proce-ure/ o, t.e a2e,-a, ti3e, place a,- 3a,,er o0 calli,2, co,1e,i,2, co,-ucti,2 3eeti,2/, =uoru3 re=uire3e,t/, 1oti,2 /y/te3/, a,- ot.er 3atter/ relati1e to t.e bu/i,e// a00air/ o0 t.e 2e,eral a//e3bly, boar- o0 -irector/, a,- co33ittee/A *?2@ T.e 2e,eral co,-uct o0 t.e a00air/ o0 t.e cooperati1e, i,clu-i,2 t.e po8er/ a,- -utie/ o0 t.e 2e,eral a//e3bly, t.e boar- o0 -irector/, co33ittee/ a,- t.e o00icer/, a,- t.eir =uali0icatio,/ a,- -i/=uali0icatio,/A *?.@ T.e 3a,,er i, 8.ic. t.e capital, 3ay be rai/e- a,- t.e purpo/e/ 0or 8.ic. it ca, be utili<e-A *?i@ T.e 3o-e o0 cu/to-y a,- o0 i,1e/t3e,t o0 ,et /urplu/A *?;@ T.e accou,ti,2 a,- au-iti,2 /y/te3/A *?9@ T.e 3a,,er o0 loa,i,2 a,- borro8i,2 i,clu-i,2 t.e li3itatio,/ t.ereo0A *?l@ T.e 3et.o- o0 -i/tributio, o0 ,et /urplu/A *?3@ T.e 3a,,er o0 a-opti,2, a3e,-i,2, repeali,2, a,- abro2ati,2 byla8/A *?,@ A co,ciliatio, or 3e-iatio, 3ec.a,i/3 0or t.e a3icable /ettle3e,t o0 -i/pute/ a3o,2 3e3ber/, -irector/, o00icer/ a,- co33ittee 3e3ber/ o0 t.e cooperati1eA a,*?o@ "t.er 3atter/ i,ci-e,t to t.e purpo/e/ a,- acti1itie/ o0 t.e cooperati1e. *ART. 17. Re2i/tratio,. A cooperati1e 0or3e- a,- or2a,i<e- u,-er t.i/ Co-e ac=uire/ ;uri-ical per/o,ality 0ro3 t.e -ate t.e Aut.ority i//ue/ a certi0icate o0 re2i/tratio, u,-er it/ o00icial /eal. All applicatio,/ 0or re2i/tratio, /.all be 0i,ally -i/po/e- o0 by t.e Aut.ority 8it.i, a perio- o0 /i>ty ?70@ -ay/ 0ro3 t.e 0ili,2 t.ereo0, ot.er8i/e Page1

t.e applicatio, i/ -ee3e- appro1e-, u,le// t.e cau/e o0 t.e -elay i/ attributable to t.e applica,t4 #ro1i-e-, T.at i, ca/e o0 a -e,ial o0 t.e applicatio, 0or re2i/tratio,, a, appeal /.all lie 8it. t.e "00ice o0 t.e #re/i-e,t 8it.i, ,i,ety ?90@ -ay/ 0ro3 receipt o0 ,otice o0 /uc. -e,ial4 #ro1i-e-, 0urt.er, T.at 0ailure o0 t.e "00ice o0 t.e #re/i-e,t to act o, t.e appeal 8it.i, ,i,ety ?90@ -ay/ 0ro3 t.e 0ili,2 t.ereo0 /.all 3ea, appro1al o0 /aiapplicatio,. *ART. 17. Certi0icate o0 Re2i/tratio,. A certi0icate o0 re2i/tratio, i//ue- by t.e Aut.ority u,-er it/ o00icial /eal /.all be co,clu/i1e e1i-e,ce t.at t.e cooperati1e t.erei, 3e,tio,e- i/ -uly re2i/tere- u,le// it i/ pro1e- t.at t.e re2i/tratio, t.ereo0 .a/ bee, ca,celle-. *ART. 1+. A3e,-3e,t o0 Article/ o0 Cooperatio, a,- 'yla8/. C,le// ot.er8i/e pre/cribe- by t.i/ Co-e a,0or le2iti3ate purpo/e/, a,y pro1i/io, or 3atter /tate- i, t.e article/ o0 cooperatio, a,- by la8/ 3ay be a3e,-e- by t8o:t.ir-/ ?2G5@ 1ote o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, 8it.out pre;u-ice to t.e ri2.t o0 t.e -i//e,ti,2 3e3ber/ to e>erci/e t.eir ri2.t to 8it.-ra8 t.eir 3e3ber/.ip u,-er Article 50. 'ot. t.e ori2i,al a,- a3e,-e- article/ a,-Gor byla8/ /.all co,tai, all pro1i/io,/ re=uire- by la8 to be /et out i, t.e article/ o0 cooperatio, a,- by la8/. A3e,-3e,t/ /.all be i,-icate- by u,-er/cori,2 or ot.er8i/e appropriately i,-icati,2 t.e c.a,2e or c.a,2e/ 3a-e a,- a copy o0 t.e a3e,-e- article/ or a3e,-e- byla8/ -uly certi0ie- u,-er oat. by t.e cooperati1e /ecretary a,- a 3a;ority o0 t.e -irector/ /tati,2 t.e 0act t.at /aia3e,-3e,t or a3e,-3e,t/ to t.e article/ o0 cooperatio, a,-Gor byla8/ .a1e bee, -uly appro1e- by t.e re=uire- 1ote o0 t.e 3e3ber/. All a3e,-3e,t/ to t.e article o0 cooperatio, a,-Gor byla8/ /.all be /ub3itte- to t.e Aut.ority. T.e a3e,-3e,t/ /.all ta9e e00ect upo, it/ appro1al by t.e aut.ority or 8it.i, t.irty ?50@ -ay/ 0ro3 t.e -ate o0 0ili,2 t.ereo0 i0 ,ot acte- upo, by t.e Aut.ority 0or a cau/e ,ot attributable to t.e cooperati1e. *ART. 19. Co,tract/ E>ecute- #rior to Re2i/tratio, a,- E00ect/ T.ereo0. Co,tract/ e>ecute- bet8ee, pri1ate per/o,/ a,- cooperati1e/ prior to t.e re2i/tratio, o0 t.e cooperati1e /.all re3ai, 1ali- a,- bi,-i,2 bet8ee, t.e partie/ a,- upo, re2i/tratio, o0 t.e cooperati1e. A 0or3al 8ritte, co,tract /.all be a-opte- a,- 3a-e i, t.e cooperati1eB/ ,a3e or o, it/ be.al0 prior to it/ re2i/tratio,. *ART. 20. Di1i/io, o0 Cooperati1e/. A,y re2i/tere- cooperati1e 3ay, by a re/olutio, appro1e- by a 1ote o0 t.ree:0ourt./ ?5G6@ o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3, re/ol1e to -i1i-e it/el0 i,to t.e t8o ?2@ or 3ore cooperati1e/. T.e proce-ure 0or /uc. -i1i/io, /.all be pre/cribe- i, t.e re2ulatio,/ o0 t.e Aut.ority4 #ro1i-e-, T.at all t.e re=uire3e,t/ /et 0ort. i, t.i/ Co-e .a1e bee, co3plie- 8it. by t.e ,e8 cooperati1e/4 #ro1i-e-, 0urt.er, T.at ,o -i1i/io, o0 a cooperati1e i, 0rau- o0 cre-itor/ /.all be 1ali-. *ART. 21. Mer2er a,- Co,/oli-atio, o0 Cooperati1e/. ?1@ T8o ?2@ or 3ore cooperati1e/ 3ay 3er2e i,to a /i,2le cooperati1e 8.ic. /.all eit.er be o,e o0 t.e co,/titue,t cooperati1e/ or t.e co,/oli-ate- cooperati1e. *?2@ No 3er2er or co,/oli-atio, /.all be 1ali- u,le// appro1e- by a t.ree:0ourt./ ?5G6@ 1ote o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3 o0 eac. o0 t.e co,/titue,t cooperati1e/ at /eparate 2e,eral a//e3bly 3eeti,2/. T.e -i//e,ti,2 3e3ber/ /.all .a1e t.e ri2.t to e>erci/e t.eir ri2.t to 8it.-ra8 t.eir 3e3ber/.ip pur/ua,t to Article 50. *?5@ T.e Aut.ority /.all i//ue t.e 2ui-eli,e/ 2o1er,i,2 t.e proce-ure o0 3er2er or co,/oli-atio, o0 cooperati1e/. I, a,y ca/e, t.e 3er2er or co,/oli-atio, o0 cooperati1e/. I, a,y ca/e, t.e 3er2er or co,/oli-atio, /.all be e00ecti1e upo, t.e i//ua,ce o0 t.e certi0icate o0 3er2er or co,/oli-atio, by t.e Aut.ority. *ART. 22. E00ect/ o0 Mer2er a,- Co,/oli-atio,. T.e 3er2er or co,/oli-atio, o0 cooperati1e/ /.all .a1e t.e 0ollo8i,2 e00ect/4 *?1@ T.e co,/titue,t cooperati1e/ /.all beco3e a /i,2le cooperati1e 8.ic., i, ca/e o0 3er2er, /.all be t.e /ur1i1i,2 cooperati1e, a,-, i, ca/e o0 co,/oli-atio,, /.all be t.e co,/oli-ate- cooperati1eA *?2@ T.e /eparate e>i/te,ce o0 t.e co,/titue,t cooperati1e/ /.all cea/e, e>cept t.at o0 t.e /ur1i1i,2 or t.e co,/oli-ate- cooperati1eA *?5@ T.e /ur1i1i,2 or t.e co,/oli-ate- cooperati1e /.all po//e// al t.e a//et/, ri2.t/, pri1ile2e/, i33u,itie/ a,- 0ra,c.i/e/ o0 eac. o0 t.e co,/titue,t cooperati1e/A Page1

*?6@ T.e /ur1i1i,2 or t.e co,/oli-ate- cooperati1e /.all po//e// all t.e a//et/, ri2.t/, pri1ile2e/, i33u,itie/ a,- 0ra,c.i/e/ o0 eac. o0 t.e co,/titue,t cooperati1e/A a,*?5@ T.e /ur1i1i,2 or t.e co,/oli-ate- cooperati1e /.all be re/po,/ible 0or all t.e liabilitie/ a,- obli2atio, o0 eac. o0 t.e co,/titue,t cooperati1e/ i, t.e /a3e 3a,,er a/ i0 /uc. /ur1i1i,2 or co,/oli-ate- cooperati1e .ait/el0 i,curre- /uc. liabilitie/ or obli2atio,/. A,y clai3, actio, or procee-i,2 pe,-i,2 by or a2ai,/t a,y /uc. co,/titue,t cooperati1e/ 3ay be pro/ecute- by or a2ai,/t t.e /ur1i1i,2 or co,/oli-ate- cooperati1e, a/ t.e ca/e 3ay be. Neit.er t.e ri2.t/ o0 cre-itor/ ,or a,y lie, upo, t.e property o0 a,y /uc. co,/titue,t cooperati1e/ /.all be i3paire- by /uc. 3er2er or co,/oli-atio,. *ART. 25. Type a,- Cate2orie/ o0 Cooperati1e/. ?1@ Type/ o0 Cooperati1e/ Cooperati1e/ 3ay 0all u,-er a,y o0 t.e 0ollo8i,2 type/4 *?a@ Cre-it Cooperati1e i/ o,e t.at pro3ote/ a,- u,-erta9e/ /a1i,2/ a,- le,-i,2 /er1ice/ a3o,2 it/ 3e3ber/. It 2e,erate/ a co33o, pool o0 0u,-/ i, or-er to pro1i-e 0i,a,cial a//i/ta,ce to it/ 3e3ber/ 0or pro-ucti1e a,- pro1i-e,t purpo/e/A *?b@ Co,/u3er/ Cooperati1e i/ o,e o0 t.e pri3ary purpo/e o0 8.ic. i/ to procure a,- -i/tribute co33o-itie/ to 3e3ber/ a,- ,o,:3e3ber/A *?c@ #ro-ucer/ Cooperati1e i/ o,e t.at u,-erta9e/ ;oi,t pro-uctio, 8.et.er a2ricultural or i,-u/trial. It i/ 0or3e- a,- operate- by it/ 3e3ber/ to u,-erta9e t.e pro-uctio, a,- proce//i,2 o0 ra8 3aterial/ or 2oo-/ pro-uce- by it/ 3e3ber/ i,to 0i,i/.e- or proce//e- pro-uct/ 0or /ale by t.e cooperati1e to it/ 3e3ber/ a,,o,:3e3ber/. A,y e,- pro-uct or it/ -eri1ati1e ari/i,2 0ro3 t.e ra8 3aterial/ pro-uce- by it/ 3e3ber/, /oli, t.e ,a3e a,- 0or t.e accou,t o0 t.e cooperati1e, /.all be -ee3e- a pro-uct o0 t.e cooperati1e a,- it/ 3e3ber/A *?-@ Mar9eti,2 Cooperati1e i/ o,e 8.ic. e,2a2e/ i, t.e /upply o0 pro-uctio, i,put/ to 3e3ber/ a,- 3ar9et/ t.eir pro-uct/A *?e@ &er1ice Cooperati1e i/ o,e 8.ic. e,2a2e/ i, 3e-ical a,- -e,tal care, .o/pitali<atio,, tra,/portatio,, i,/ura,ce, .ou/i,2, labor, electric li2.t a,- po8er, co33u,icatio,, pro0e//io,al a,- ot.er /er1ice/A *?0@ Multipurpo/e Cooperati1e i/ o,e 8.ic. co3bi,e/ t8o ?2@ or 3ore o0 t.e bu/i,e// acti1itie/ o0 t.e/e -i00ere,t type/ o0 cooperati1e/A *?2@ A-1ocacy Cooperati1e i/ a pri3ary cooperati1e 8.ic. pro3ote/ a,- a-1ocate/ cooperati1i/3 a3o,2 it/ 3e3ber/ a,- t.e public t.rou2. /ocially:orie,te- pro;ect/, e-ucatio, a,- trai,i,2, re/earc. a,co33u,icatio,, a,- ot.er /i3ilar acti1itie/ to reac. out to it/ i,te,-e- be,e0iciarie/A *?.@ A2raria, Re0or3 Cooperati1e i/ o,e or2a,i<e- by 3ar2i,al 0ar3er/ 3a;ority o0 8.ic. are a2raria, re0or3 be,e0iciarie/ 0or t.e purpo/e o0 -e1elopi,2 a, appropriate /y/te3 o0 la,- te,ure, la,- -e1elop3e,t, la,co,/oli-atio, or la,- 3a,a2e3e,t i, area/ co1ere- by a2raria, re0or3A *?i@ Cooperati1e 'a,9 i/ o,e or2a,i<e- 0or t.e pri3ary purpo/e o0 pro1i-i,2 a 8i-e ra,2e o0 0i,a,cial /er1ice/ to cooperati1e/ a,- t.eir 3e3ber/A *?;@ Dairy Cooperati1e i/ o,e 8.o/e 3e3ber/ are e,2a2e- i, t.e pro-uctio, o0 0re/. 3il9 8.ic. 3ay be proce//e- a,-Gor 3ar9ete- a/ -airy pro-uct/A *?9@ E-ucatio, Cooperati1e i/ o,e or2a,i<e- 0or t.e pri3ary purpo/e o0 o8,i,2 a,- operati,2 lice,/ee-ucatio,al i,/titutio,/ ,ot8it./ta,-i,2 t.e pro1i/io,/ o0 Republic Act No. 9155, ot.er8i/e 9,o8, a/ t.e o1er,a,ce o0 'a/ic E-ucatio, Act o0 2001A *?l@ Electric Cooperati1e i/ o,e or2a,i<e- 0or t.e pri3ary purpo/e- o0 u,-erta9i,2 po8er 2e,eratio,/, utili<i,2 re,e8able e,er2y /ource/, i,clu-i,2 .ybri- /y/te3/, ac=ui/itio, a,- operatio, o0 /ubtra,/3i//io, or -i/tributio, to it/ .ou/e.ol- 3e3ber/A Page1

*?3@ Fi,a,cial &er1ice Cooperati1e i/ o,e or2a,i<e- 0or t.e pri3ary purpo/e o0 e,2a2i,2 i, /a1i,2/ a,- cre-it /er1ice/ a,- ot.er 0i,a,cial /er1ice/A *?,@ Fi/.er3e, Cooperati1e i/ o,e or2a,i<e- by 3ar2i,ali<e- 0i/.er3e, i, localitie/ 8.o/e pro-uct/ are 3ar9ete- eit.er a/ 0re/. or proce//e- pro-uct/A *?o@ !ealt. &er1ice/ Cooperati1e i/ o,e or2a,i<e- 0or t.e pri3ary purpo/e o0 pro1i-i,2 3e-ical, -e,tal a,ot.er .ealt. /er1ice/A *?p@ !ou/i,2 Cooperati1e i/ o,e or2a,i<e- to a//i/t or pro1i-e acce// to .ou/i,2 0or t.e be,e0it o0 it/ re2ular 3e3ber/ 8.o acti1ely participate i, t.e /a1i,2/ pro2ra3 0or .ou/i,2. It i/ co:o8,e- a,- co,trolle- by it/ 3e3ber/A *?=@ I,/ura,ce Cooperati1e i/ o,e e,2a2e- i, t.e bu/i,e// o0 i,/uri,2 li0e a,- po1erty o0 cooperati1e/ a,t.eir 3e3ber/A *?r@ Tra,/port Cooperati1e i/ o,e 8.ic. i,clu-e/ la,- a,- /ea tra,/portatio,, li3ite- to /3all 1e//el/, a/ -e0i,e- or cla//i0ie- u,-er t.e #.ilippi,e 3ariti3e la8/, or2a,i<e- u,-er t.e pro1i/io,/ o0 t.i/ Co-eA *?/@ )ater &er1ice Cooperati1e i/ o,e or2a,i<e- to o8,, operate a,- 3a,a2e 8ater/ /y/te3/ 0or t.e pro1i/io, a,- -i/tributio, o0 potable 8ater 0or it/ 3e3ber/ a,- t.eir .ou/e.ol-/A *?t@ )or9er/ Cooperati1e i/ o,e or2a,i<e- by 8or9er/, i,clu-i,2 t.e /el0:e3ploye-, 8.o are at /a3e ti3e t.e 3e3ber/ a,- o8,er/ o0 t.e e,terpri/e. It/ pri,cipal purpo/e i/ to pro1i-e e3ploy3e,t a,- bu/i,e// opportu,itie/ to it/ 3e3ber/ a,- 3a,a2e it i, accor-a,ce 8it. cooperati1e pri,ciple/A a,*?u@ "t.er type/ o0 cooperati1e a/ 3ay be -eter3i,e- by t.e Aut.ority. *?2@ Cate2orie/ o0 Cooperati1e Cooperati1e/ /.all be cate2ori<e- accor-i,2 to 3e3ber/.ip a,- territorial co,/i-eratio,/ a/ 0ollo8/4 *?a@ I, ter3/ o0 3e3ber/.ip, cooperati1e /.all be cate2ori<e- i,to4 *?i@ #ri3ary T.e 3e3ber/ o0 8.ic. are ,atural per/o,/A *?ii@ &eco,-ary T.e 3e3ber/ o0 8.ic. are pri3arie/A a,*?iii@ Tertiary T.e 3e3ber/ o0 8.ic. are /eco,-ary cooperati1e/A a,*?b@ I, ter3/ o0 territory, cooperati1e/ /.all be cate2ori<e- accor-i,2 to area/ o0 operatio,/ 8.ic. 3ay or 3ay ,ot coi,ci-e 8it. t.e political /ub-i1i/io,/ o0 t.e cou,try. *ART. 26. Fu,ctio,/ o0 a Fe-eratio, o0 Cooperati1e/. A 0e-eratio, o0 cooperati1e/ /.all u,-erta9e t.e 0ollo8i,2 0u,ctio,/4 *?a@ To carry o, a,y cooperati1e e,terpri/e aut.ori<e- u,-er Article 7 t.at co3ple3e,t/ au23e,t/, or /upple3e,t/ but -oe/ ,ot co,0lict, co3plete 8it., ,or /uppla,t t.e bu/i,e// or eco,o3ic acti1itie/ o0 it/ 3e3ber/A *?b@ To carry o,, e,coura2e, a,- a//i/t e-ucatio,al a,- a-1i/ory 8or9 relati,2 to it/ 3e3ber cooperati1e/A *?c@ To re,-er /er1ice/ -e/i2,e- to e,coura2e /i3plicity, e00icie,cy, a,- eco,o3y i, t.e co,-uct o0 t.e bu/i,e// o0 it/ 3e3ber cooperati1e/ a,- to 0acilitate t.e i3ple3e,tatio, o0 t.eir boo99eepi,2, accou,ti,2, a,ot.er /y/te3/ a,- proce-ure/A *?-@ To pri,t, publi/., a,- circulate a,y ,e8/paper or ot.er publicatio, i, t.e i,tere/t o0 it/ 3e3ber cooperati1e/ a,- e,terpri/e/A Page1

*?e@ To coor-i,ate a,- 0acilitate t.e acti1itie/ o0 it/ 3e3ber cooperati1e/A *?0@ To e,ter i,to ;oi,t 1e,ture/ 8it. ,atio,al or i,ter,atio,al cooperati1e/ o0 ot.er cou,trie/ i, t.e 3a,u0acture a,- /ale o0 pro-uct/ a,-Gor /er1ice/ i, t.e #.ilippi,e/ a,- abroa-A a,*?2@ To per0or3 /uc. ot.er 0u,ctio,/ a/ 3ay be ,ece//ary to attai, it/ ob;ecti1e/. *A 0e-eratio, o0 cooperati1e/ 3ay be re2i/tere- by carryi,2 out t.e 0or3alitie/ 0or re2i/tratio, o0 a cooperati1e. *Re2i/tere- cooperati1e/ 3ay or2a,i<e a 0e-eratio, accor-i,2 to t.e type o0 bu/i,e// acti1ity e,2a2e- i, by t.e cooperati1e/. *ART. 25. Cooperati1e C,io,/. Re2i/tere- cooperati1e/ a,- 0e-eratio,/ at t.e appropriate le1el/ 3ay or2a,i<e or ;oi, cooperati1e u,io,/ to repre/e,t t.e i,tere/t a,- 8el0are o0 all type/ o0 cooperati1e/ at t.e pro1i,cial, city, re2io,al, a,- ,atio,al le1el/. Cooperati1e u,io,/ 3ay .a1e t.e 0ollo8i,2 purpo/e/4 *?a@ To repre/e,t it/ 3e3ber or2a,i<atio,/A *?b@ To ac=uire, a,aly<e, a,- -i//e3i,ate, eco,o3ic, /tati/tical, a,- ot.er i,0or3atio, relati,2 to it/ 3e3ber/ a,- to all type/ o0 cooperati1e/ 8it.i, it/ area o0 operatio,A *?c@ To /po,/or /tu-ie/ i, t.e eco,o3ic, le2al, 0i,a,cial, /ocial a,- ot.er p.a/e/ o0 cooperatio,, a,- publi/. t.e re/ult/ t.ereo0A *?-@ To pro3ote t.e 9,o8le-2e o0 cooperati1e pri,ciple/ a,- practice/A *?e@ To -e1elop t.e cooperati1e 3o1e3e,t i, t.eir re/pecti1e ;uri/-ictio,/A *?0@ To a-1i/e t.e appropriate aut.oritie/ o, all =ue/tio,/ relati,2 to cooperati1e/A *?2@ To rai/e 0u,-/ t.rou2. 3e3ber/.ip 0ee/, -ue/ a,- co,tributio,/, -o,atio,/, a,- /ub/i-ie/ 0ro3 local a,0orei2, /ource/ 8.et.er pri1ate or 2o1er,3e,tA a,*?.@ To -o a,- per0or3 /uc. ot.er ,o,:bu/i,e// acti1itie/ a/ 3ay be ,ece//ary to attai, t.e 0ore2oi,2 ob;ecti1e/. *Cooperati1e u,io,/ 3ay a//i/t t.e ,atio,al a,- local 2o1er,3e,t/ i, t.e latterB/ -e1elop3e,t acti1itie/ i, t.eir re/pecti1e ;uri/-ictio,/.* &ec. 5. Article/ 27, 27, 2+, 29, 50, 51 a,- 52 o0 C.apter III o, Me3ber/.ip o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER III MEM'ER&!I# *ART. 27. (i,-/ o0 Me3ber/.ip. A cooperati1e 3ay .a1e t8o ?2@ 9i,-/ o0 3e3ber/, to 8it4 ?1@ re2ular 3e3ber/ a,- ?2@ a//ociate 3e3ber/. *A re2ular 3e3ber i/ o,e 8.o .a/ co3plie- 8it. all t.e 3e3ber/.ip re=uire3e,t/ a,- e,title- to all t.e ri2.t/ a,- pri1ile2e/ o0 3e3ber/.ip. A, a//ociate 3e3ber i/ o,e 8.o .a/ ,o ri2.t to 1ote ,or be 1ote- upo, a,/.all be e,title- o,ly to /uc. ri2.t/ a,- pri1ile2e/ a/ t.e byla8/ 3ay pro1i-e4 #ro1i-e-, T.at a, a//ociate 8.o 3eet/ t.e 3i,i3u3 re=uire3e,t/ o0 re2ular 3e3ber/.ip, co,ti,ue/ to patro,i<e t.e cooperati1e 0or t8o ?2@ year/, a,- /i2,i0ie/ .i/G.er i,te,tio, to re3ai, a 3e3ber /.all be co,/i-ere- a re2ular 3e3ber. *A cooperati1e or2a,i<e- by 3i,or/ /.all be co,/i-ere- a laboratory cooperati1e a,- 3u/t be a00iliate- 8it. a re2i/tere- cooperati1e. A laboratory cooperati1e /.all be 2o1er,e- by /pecial 2ui-eli,e/ to be pro3ul2ate- by t.e Aut.ority. Page1

*ART. 27. o1er,3e,t "00icer/ a,- E3ployee/. ?1@ A,y o00icer or e3ployee o0 t.e Aut.ority /.all be -i/=uali0ie- to be electe- or appoi,te- to a,y po/itio, i, a cooperati1e4 #ro1i-e-, T.at t.e -i/=uali0icatio, -oe/ ,ot e>te,- to a cooperati1e or2a,i<e- by t.e o00icer/ or e3ployee/ o0 t.e Aut.ority. *?2@ All electi1e o00icial/ o0 t.e o1er,3e,t /.all be i,eli2ible to beco3e o00icer/ a,- -irector/ o0 cooperati1e/4 #ro1i-e-, T.at t.e -i/=uali0icatio, -oe/ ,ot e>te,- to a party li/t repre/e,tati1e bei,2 a, o00icer o0 a cooperati1e .e or /.e repre/e,t/A a,*?5@ A,y 2o1er,3e,t e3ployee or o00icial 3ay, i, t.e -i/c.ar2e o0 i/ -utie/ a/ a 3e3ber i, t.e cooperati1e, be allo8e- by t.e e,- o0 o00ice co,cer,e- to u/e o00icial ti3e 0or atte,-a,ce at t.e 2e,eral a//e3bly, boar- a,co33ittee 3eeti,2/ o0 cooperati1e/ a/ 8ell a/ cooperati1e /e3i,ar/, co,0ere,ce/, 8or9/.op/, tec.,ical 3eeti,2/, a,- trai,i,2 cour/e/ locally or abroa-4 #ro1i-e-, T.at t.e operatio,/ o0 t.e o00ice co,cer,e- are ,ot a-1er/ely a00ecte-. *ART. 2+. Applicatio,. A, applica,t 0or 3e3ber/.ip /.all be -ee3e- a 3e3ber a0ter appro1al o0 .i/ 3e3ber/.ip by t.e boar- o0 -irector/ a,- /.all e>erci/e t.e ri2.t/ o0 3e3ber a0ter .a1i,2 3a-e /uc. pay3e,t/ to t.e cooperati1e i, re/pect to 3e3ber/.ip or ac=uire- i,tere/t i, t.e cooperati1e a/ 3ay be pre/cribe- i, t.e byla8/. I, ca/e 3e3ber/.ip i/ re0u/e- or -e,ie- by t.e boar- o0 -irector/, a, appeal 3ay be 3a-e to t.e 2e,eral a//e3bly a,- t.e latterB/ -eci/io, /.all be 0i,al. For t.i/ purpo/e, t.e 2e,eral a//e3bly 3ay opt to create a, appeal a,- 2rie1a,ce co33ittee, t.e 3e3ber/ o0 8.ic. /.all /er1e 0or a perio- o0 o,e ?1@ year a,- /.all -eci-e appeal/ o, 3e3ber/.ip applicatio, 8it.i, t.irty ?50@ -ay/ upo, receipt t.ereo0. I0 t.e co33ittee 0ail/ to -eci-e 8it.i, t.e pre/cribe- perio-, t.e appeal i/ -ee3e- appro1e- i, 0a1or o0 t.e applica,t. *ART. 29. %iability o0 Me3ber/. A 3e3ber /.all be liable 0or t.e -ebt/ o0 t.e cooperati1e to t.e e>te,t o0 .i/ co,tributio, to t.e /.are capital o0 t.e cooperati1e. *ART. 50. Ter3i,atio, o0 Me3ber/.ip. ?1@ A 3e3ber o0 a cooperati1e 3ay, 0or a,y 1ali- rea/o,, 8it.-ra8 .i/ 3e3ber/.ip 0ro3 t.e cooperati1e by 2i1i,2 a /i>ty ?70@ -ay ,otice to t.e boar- o0 -irector/. &ub;ect to t.e byla8/ o0 t.e cooperati1e, t.e 8it.-ra8i,2 3e3ber /.all be e,title- to a re0u,- o0 .i/ /.are capital co,tributio, a,- all ot.er i,tere/t/ i, t.e cooperati1e4 #ro1i-e-, T.at /uc. 0u,- /.all ,ot be 3a-e i0 upo, /uc. pay3e,t t.e 1alue o0 t.e a//et/ o0 t.e cooperati1e 8oul- be le// t.a, t.e a22re2ate a3ou,t o0 it/ -ebt/ a,- liabilitie/ e>clu/i1e o0 .i/ /.are capital co,tributio,. *?2@ T.e -eat. or i,/a,ity o0 a 3e3ber i, a pri3ary cooperati1e, a,- t.e i,/ol1e,cy or -i//olutio, o0 a 3e3ber i, a /eco,-ary or tertiary cooperati1e 3ay be co,/i-ere- 1ali- 2rou,-/ 0or ter3i,atio, o0 3e3ber/.ip4 #ro1i-e-, T.at i, ca/e o0 -eat. or i,/a,ity o0 a, a2raria, re0or3 be,e0iciary:3e3ber o0 a cooperati1e, t.e ,e>t:o0:9i, 3ay a//u3e t.e -utie/ a,- re/po,/ibilitie/ o0 t.e ori2i,al 3e3ber *?5@ Me3ber/.ip i, t.e cooperati1e 3ay be ter3i,ate- by a 1ote o0 t.e 3a;ority o0 all t.e 3e3ber/ o0 t.e boar- o0 -irector/ 0or a,y o0 t.e 0ollo8i,2 cau/e/4 *?a@ ).e, a 3e3ber .a/ ,ot patro,i<e- a,y o0 t.e /er1ice/ o0 t.e cooperati1e 0or a, u,rea/o,able perio- o0 ti3e a/ 3ay be pre1iou/ly -eter3i,e- by t.e boar- o0 -irector/A *?b@ ).e, a 3e3ber .a/ co,ti,uou/ly 0aile- to co3ply 8it. .i/ obli2atio,/A *?c@ ).e, a 3e3ber .a/ acte- i, 1iolatio, o0 t.e byla8/ a,- t.e rule/ o0 t.e cooperati1eA a,*?-@ For a,y act or o3i//io, i,;uriou/ or pre;u-icial to t.e i,tere/t or t.e 8el0are o0 t.e cooperati1e. *A 3e3ber 8.o/e 3e3ber/.ip t.e boar- o0 -irector/ 3ay 8i/. to ter3i,ate /.all be i,0or3e- o0 /uc. i,te,-e- actio, i, 8riti,2 a,- /.all be 2i1e, a, opportu,ity to be .ear- be0ore t.e /ai- boar- 3a9e/ it/ -eci/io,. T.e -eci/io, o0 t.e boar- /.all be i, 8riti,2 a,- /.all be co33u,icate- i, per/o, or by re2i/tere3ail to /ai- 3e3ber a,- /.all be appealable 8it.i, t.irty ?50@ -ay/ 0ro3 receipt t.ereo0 to t.e 2e,eral a//e3bly 8.o/e -eci/io, /.all be 0i,al. T.e 2e,eral a//e3bly 3ay create a, appeal a,- 2rie1a,ce co33ittee 8.o/e 3e3ber/ /.all /er1e 0or a perio- o0 o,e ?1@ year a,- /.all -eci-e appeal/ o, 3e3ber/.ip ter3i,atio,. T.e co33ittee i/ 2i1e, t.irty ?50@ -ay/ 0ro3 receipt t.ereo0 to -eci-e o, t.e appeal. Failure to -eci-e 8it.i,

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t.e pre/cribe- perio-, t.e appeal i/ -ee3e- appro1e- i, 0a1or o0 t.e 3e3ber. #e,-i,2 a -eci/io, by t.e 2e,eral a//e3bly, t.e 3e3ber/.ip re3ai,/ i, 0orce. *ART. 51. Re0u,- o0 I,tere/t/. All /u3/ co3pute- i, accor-a,ce 8it. t.e byla8/ to be -ue 0ro3 a cooperati1e to a 0or3er 3e3ber /.all be pai- to .i3 eit.er by t.e cooperati1e or by t.e appro1e- tra,/0eree, a/ t.e ca/e 3ay be, i, accor-a,ce 8it. t.i/ Co-e.* &ec. 6. Article/ 55, 56, 55, 57, 57, 5+, 59, 60, 62, 62, 65, 66, 65, 67, 67, 6+, 69, 50 a,- 51 o0 C.apter I$ o, A-3i,i/tratio, o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER I$ ADMINI&TRATI"N *ART. 52. Co3po/itio, o0 t.e e,eral A//e3bly. T.e 2e,eral a//e3bly /.all be co3po/e- o0 /uc. 3e3ber/ 8.o are e,title- to 1ote u,-er t.e article/ o0 cooperatio, a,- byla8/ o0 t.e cooperati1e. *ART. 52. #o8er/ o0 t.e e,eral A//e3bly. T.e 2e,eral a//e3bly /.all be co3po/e- o0 /uc. 3e3ber/ 8.o are e,title- to 1ote u,-er t.e article/ o0 cooperatio, a,- byla8/ o0 t.e cooperati1e. *ART. 55. #o8er/ o0 t.e e,eral A//e3bly. T.e 2e,eral a//e3bly /.all be t.e .i2.e/t policy:3a9i,2 bo-y o0 t.e cooperati1e a,- /.all e>erci/e /uc. po8er/ a/ are /tate- i, t.i/ Co-e, i, t.e article/ o0 cooperatio, a,- i, t.e byla8/ o0 t.e cooperati1e. T.e 2e,eral a//e3bly /.all .a1e t.e 0ollo8i,2 e>clu/i1e po8er/ 8.ic. ca,,ot be -ele2ate4 *?1@ To -eter3i,e a,- appro1e a3e,-3e,t/ to t.e article/ o0 cooperatio, a,- byla8/A *?2@ To elect or appoi,t t.e 3e3ber/ o0 t.e boar- o0 -irector/, a,- to re3o1e t.e3 0or cau/e. !o8e1er, i, t.e ca/e o0 t.e electric cooperati1e/ re2i/tere- u,-er t.i/ Co-e, electio, o0 t.e 3e3ber/ o0 t.e boar- /.all be .eli, accor-a,ce 8it. it/ byla8/ or electio, 2ui-eli,e o0 /uc. electric cooperati1eA a,*?5@ To appro1e -e1elop3e,tal pla,/ o0 t.e cooperati1e. *&ub;ect to /uc. ot.er pro1i/io,/ o0 t.i/ Co-e a,- o,ly 0or purpo/e/ o0 pro3pt a,- i,telli2e,t -eci/io,:3a9i,2, t.e 2e,eral a//e3bly 3ay be a t.ree:0ourt./ ?5G6@ 1ote o0 all it/ 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,co,/tituti,2 a =uoru3, -ele2ate /o3e o0 it/ po8er/ to a /3aller bo-y o0 t.e cooperati1e. T.e/e po8er/ /.all be e,u3erate- u,-er t.e byla8/ o0 t.e cooperati1e. *ART. 56. Meeti,2/. ?1@ A re2ular 3eeti,2 /.all be .el- a,,ually by t.e 2e,eral a//e3bly o, a -ate 0i>e- i, t.e byla8/, or i0 ,ot /o 0i>e-, o, a,y -ate- 8it.i, ,i,ety ?90@ -ay/ a0ter t.e clo/e o0 eac. 0i/cal year4 #ro1i-e-, T.at ,otice o0 re2ular 3eeti,2/ /.all be /e,t i, 8riti,2, by po/ti,2 or publicatio,, or t.rou2. ot.er electro,ic 3ea,/ to all 3e3ber/ o0 recor-. *?2@ ).e,e1er ,ece//ary, a /pecial 3eeti,2 o0 t.e 2e,eral a//e3bly 3ay be calle- at a,y ti3e by a 3a;ority 1ote o0 t.e boar- o0 -irector/ or a/ pro1i-e- 0or i, t.e byla8/4 #ro1i-e-, T.at a ,otice i, 8riti,2 /.all be /e,t o,e ?1@ 8ee9 prior to t.e 3eeti,2 to all 3e3ber/ 8.o are e,title- to 1ote. !o8e1er, a /pecial 3eeti,2 /.all be calle- by t.e boar- o0 -irector/ a0ter co3plia,ce 8it. t.e re=uire- ,otice 8it.i, 0ro3 at lea/t te, per ce,tu3 ?10H@ o0 t.e total 3e3ber/ 8.o re e,title- to 1ote to tra,/act /peci0ic bu/i,e// co1ere- by t.e call. *I0 t.e boar- 0ail/ to call a re2ular or a /pecial 3eeti,2 8it.i, t.e 2i1e, perio-, t.e Aut.ority, upo, petitio, o0 te, per ce,tu3 ?10H@ o0 all t.e 3e3ber/ o0 t.e cooperati1e 8.o are e,title- to 1ote, a,- 0or 2oo- cau/e /.o8,, /.all i//ue a, or-er to t.e petitio,er/ -irecti,2 t.e3 to call a 3eeti,2 o0 t.e 2e,eral a//e3bly by 2i1i,2 proper ,otice a/ re=uire- i, t.i/ Co-e or i, t.e byla8/A *?5@ I, t.e ca/e o0 a ,e8ly appro1e- cooperati1e, a /pecial 2e,eral a//e3bly /.all be calle-, a/ 0ar a/ practicable, 8it.i, ,i,ety ?90@ -ay/ 0ro3 /uc. appro1alA

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*?6@ T.e Aut.ority 3ay call a /pecial 3eeti,2 o0 t.e cooperati1e 0or t.e purpo/e o0 reporti,2 to t.e 3e3ber/ t.e re/ult o0 a,y e>a3i,atio, or ot.er i,1e/ti2atio, o0 t.e cooperati1e a00air/A a,*?5@ Notice o0 a,y 3eeti,2 3ay be 8ai1e-, e>pre//ly or i3plie-ly, by a,y 3e3ber. *ART. 55. Iuoru3. A =uoru3 /.all co,/i/t o0 at lea/t t8e,ty:0i1e per ce,tu3 ?25H@ o0 all t.e 3e3ber/ e,titleto 1ote. I, t.e ca/e o0 cooperati1e ba,9/, t.e =uoru3 /.all be a/ pro1i-e- i, Article 99 o0 t.i/ Co-e. I, t.e ca/e o0 electric cooperati1e/ re2i/tere- u,-er t.i/ Co-e, a =uoru3, u,le// ot.er8i/e pro1i-e- i, t.e byla8/, /.all co,/i/t o0 0i1e per ce,tu3 ?5H@ o0 all t.e 3e3ber/ e,title- to 1ote. *ART. 57. $oti,2 &y/te3. Eac. 3e3ber o0 a pri3ary cooperati1e /.all .a1e o,ly o,e ?1@ 1ote. I, t.e ca/e o0 3e3ber/ o0 /eco,-ary or tertiary cooperati1e/, t.ey /.all .a1e o,e ?1@ ba/ic 1ote a,- a/ 3a,y i,ce,ti1e 1ote/ a/ pro1i-e- 0or i, t.e byla8/ but ,ot e>cee- 0i1e ?5@ 1ote/. T.e 1ote/ ca/t by t.e -ele2ate/ /.all be -ee3ea/ 1ote/ ca/t by t.e 3e3ber/ t.ereo0. *!o8e1er, t.e byla8/ o0 a cooperati1e ot.er t.a, a pri3ary 3ay pro1i-e 0or 1oti,2 by pro>y. $oti,2 by pro>y 3ea,/ allo8i,2 a -ele2ate o0 a cooperati1e to repre/e,t or 1ote i, be.al0 o0 a,ot.er -ele2ate o0 t.e /a3e cooperati1e. *ART. 57. Co3po/itio, a,- Ter3 o0 t.e 'oar- o0 Director/. C,le// ot.er8i/e pro1i-e- i, t.e byla8/, t.e -irectio, a,- 3a,a2e3e,t o0 t.e a00air/ o0 a cooperati1e /.all be 1e/te- i, a boar- o0 -irector/ 8.ic. /.all be co3po/e- o0 ,ot le// t.at 0i1e ?5@ ,or 3ore t.a, 0i0tee, ?15@ 3e3ber/ electe- by t.e 2e,eral a//e3bly 0or a ter3 o0 t8o ?2@ year/ a,- /.all .ol- o00ice u,til t.eir /ucce//or/ are -uly electe- a, =uali0ie-, or u,til -uly re3o1e- 0or cau/e-. *ART. 5+. #o8er/ o0 t.e 'oar- o0 Director/. T.e boar- o0 -irector/ /.all be re/po,/ible 0or t.e /trate2ic pla,,i,2, -irectio,:/etti,2 a,- policy:0or3ulatio, acti1itie/ o0 t.e cooperati1e/. *ART. 59. Director/. ?1@ A,y 3e3ber o0 a cooperati1e 8.o u,-er t.e byla8/ o0 t.e cooperati1e, .a/ t.e ri2.t to 1ote a,- 8.o po//e//e/ all t.e =uali0icatio,/ a,- ,o,e o0 t.e -i/=uali0icatio,/ pro1i-e- i, t.e la8/ or byla8/ /.all be eli2ible 0or electio, a/ -irector. *?2@ T.e cooperati1e 3ay, by re/olutio, o0 it/ boar- o0 -irector/, a-3it a/ -irector/, or co33ittee 3e3ber o,e appoi,te- by a,y 0i,a,ci,2 i,/titutio, 0ro3 8.ic. t.e cooperati1e recei1e- 0i,a,cial a//i/ta,ce /olely to pro1i-e tec.,ical 9,o8le-2e ,ot a1ailable 8it.i, it/ 3e3ber/.ip. &uc. -irector or co33ittee 3e3ber ,ot be a 3e3ber o0 t.e cooperati1e a,- /.all .a1e ,o po8er/, ri2.t/, ,or re/po,/ibilitie/ e>cept to pro1i-e- tec.,ical a//i/ta,ce a/ re=uire- by t.e cooperati1e. *?5@ T.e 3e3ber/ o0 t.e boar- o0 -irector/ /.all ,ot .ol- a,y ot.er po/itio, -irectly i,1ol1e- i, t.e -ay to -ay operatio, a,- 3a,a2e3e,t o0 t.e cooperati1e. *?6@ A,y per/o, e,2a2e- i, a bu/i,e// /i3ilar to t.at o0 t.e cooperati1e or 8.o i, a,y 8ay .a/ a co,0lict o0 i,tere/t 8it. it, i/ -i/=uali0ie- 0ro3 electio, a/ a -irector o0 /ai- cooperati1e. *ART. 60. Meeti,2 o0 t.e 'oar- a,- Iuoru3 Re=uire3e,t. ?1@ I, t.e ca/e o0 pri3ary cooperati1e/, re2ular 3eeti,2/ o0 t.e boar- o0 -irector/ /.all be .el- at lea/t o,ce a 3o,t.. *?2@ &pecial 3eeti,2/ o0 t.e boar- o0 -irector/ 3ay be .el- at a,y ti3e upo, t.e call o0 t.e c.airper/o, or a 3a;ority o0 t.e 3e3ber/ o0 t.e boar-4 #ro1i-e-, T.at 8ritte, ,otice/ o0 t.e 3eeti,2 /peci0yi,2 t.e a2e,-a o0 t.e /pecial 3eeti,2 /.all be 2i1e, to all 3e3ber/ o0 t.e boar- at lea/t o,e ?1@ 8ee9 be0ore t.e /ai- 3eeti,2. *?5@ A 3a;ority o0 t.e 3e3ber/ o0 t.e 'oar- /.all co,/titute a =uoru3 or t.e co,-uct o0 bu/i,e//, u,le// t.e byla8/ pro1e- ot.er8i/e. *?6@ Director/ ca,,ot atte,- or 1ote by pro>y at boar- 3eeti,2/. *ART. 61. $aca,cy i, t.e 'oar- o0 Director/. A,y 1aca,cy i, t.e boar- o0 -irector/, ot.er t.a, by e>piratio, o0 ter3, 3ay be 0ille- by t.e 1ote o0 at lea/t a 3a;ority o0 t.e re3ai,i,2 -irector/, i0 /till co,/tituti,2 a =uoru3A Page1

ot.er8i/e, t.e 1aca,cy 3u/t be 0ille- by t.e 2e,eral a//e3bly i, a re2ular or /pecial 3eeti,2 calle- 0or t.e purpo/e. A -irector /o electe- to 0ill a 1aca,cy /.all /er1e o,ly t.e u,e>pire- ter3 o0 .i/ pre-ece//or i, o00ice. *ART. 62. "00icer/ o0 t.e Cooperati1e. T.e boar- o0 -irector/ /.all elect 0ro3 a3o,2 t.e3/el1e/ t.e c.airper/o, a,- 1ice:c.airper/o,, a,- elect or appoi,t ot.er o00icer/ o0 t.e cooperati1e 0ro3 out/i-e o0 t.e boar- i, accor-a,ce 8it. t.eir byla8/. All o00icer/ /.all /er1e -uri,2 2oo- be.a1ior a,- /.all ,ot be re3o1ee>cept 0or cau/e a0ter -ue .eari,2. %o// o0 co,0i-e,ce /.all ,ot be a 1ali- 2rou,- 0or re3o1al u,le// e1i-e,ce- by act/ or o3i//io, cau/i,2 lo// o0 co,0i-e,ce i, t.e .o,e/ty a,- i,te2rity o0 /uc. o00icer. No t8o ?2@ or 3ore per/o,/ 8it. relatio,/.ip/ up to t.e t.ir- ci1il -e2ree o0 co,/a,2ui,ity or a00i,ity ,or /.all a,y per/o, e,2a2e- i, a bu/i,e// /i3ilar to t.at o0 t.e cooperati1e ,or 8.o i, a,y ot.er 3a,,er .a/ i,tere/t/ i, co,0lict 8it. t.e cooperati1e /.all /er1e a/ a, appoi,ti1e o00icer. *ART. 65. Co33ittee/ o0 Cooperati1e/. ?1@ T.e byla8/ 3ay create a, e>ecuti1e co33ittee to be appoi,te- by t.e boar- o0 -irector/ 8it. /uc. po8er/ a,- -utie/ a/ 3ay be -ele2ate- to it i, t.e byla8/ or by a 3a;ority 1ote o0 all t.e 3e3ber/ o0 t.e boar- o0 -irector/. *?2@ T.e byla8/ /.all pro1i-e 0or t.e creatio, o0 a, au-it, electio,, 3e-iatio, a,- co,ciliatio,, et.ic/, a,- /uc. ot.er co33ittee/ a/ 3ay be ,ece//ary 0or t.e co,-uct o0 t.e a00air/ o0 t.e cooperati1e. T.e 3e3ber/ o0 bot. t.e au-it a,- electio, co33ittee /.all be electe- by t.e 2e,eral a//e3bly a,- t.e re/t /.all be appoi,te- by t.e boar-. T.e au-it co33ittee /.all be -irectly accou,table a,- re/po,/ible to t.e 2e,eral a//e3bly. It /.all .a1e t.e po8er a,- -uty to co,ti,uou/ly 3o,itor t.e a-e=uacy a,- e00ecti1e,e// o0 t.e cooperati1eB/ 3a,a2e3e,t co,trol /y/te3 a,- au-it t.e per0or3a,ce o0 t.e cooperati1e a,- it/ 1ariou/ re/po,/ibility ce,ter/. *C,le// ot.er8i/e pro1i-e- i, t.e byla8/, t.e boar-, i, ca/e o0 a 1aca,cy i, t.e co33ittee/, 3ay call a, electio, to 0ill t.e 1aca,cy or appoi,t a per/o, to 0ill t.e /a3e /ub;ect to t.e pro1i/io, t.at t.e per/o, electeor appoi,te- /.all /er1e o,ly 0or t.e u,e>pire- portio, o0 t.e ter3. *ART. 66. Fu,ctio,/, Re/po,/ibilitie/ a,- Trai,i,2 Re=uire3e,t/ o0 Director/, "00icer/ a,- Co33ittee Me3ber/. t.e 0u,ctio,/ a,- re/po,/ibilitie/ o0 -irector/, o00icer/ a,- co33ittee 3e3ber/, a/ 8ell a/ t.eir trai,i,2 re=uire3e,t/, /.all be i, accor-a,ce 8it. t.e rule/ a,- re2ulatio,/ i//ue- by t.e Aut.ority. *ART. 65. %iability o0 Director/, "00icer/ a,- Co33ittee Me3ber/. Director/, o00icer/ a,- co33ittee 3e3ber/, 8.o are 8ill0ully a,- 9,o8i,2ly 1ote 0or or a//e,t to pate,tly u,la80ul act/ or 8.o are 2uilty o0 2ro// ,e2li2e,ce or ba- 0ait. i, -irecti,2 t.e a00air/ o0 t.e cooperati1e or ac=uire a,y per/o,al or pecu,iary i,tere/t i, co,0lict 8it. t.eir -uty a/ /uc. -irector/, o00icer/ or co33ittee 3e3ber/ /.all be liable ;oi,tly a,- /e1erally 0or all -a3a2e/ or pro0it/ re/ulti,2 t.ere0ro3 to t.e cooperati1e, 3e3ber/, a,- ot.er per/o,/. *).e, a -irector, o00icer or co33ittee 3e3ber atte3pt/ to ac=uire or ac=uire/, i, 1iolatio, o0 .i/ -uty, a,y i,tere/t or e=uity a-1er/e to t.e cooperati1e i, re/pect to a,y 3atter 8.ic. .a/ bee, repo/e- i, .i3 i, co,0i-e,ce, .e /.all, a/ a tru/tee 0or t.e cooperati1e, be liable 0or -a3a2e/ a,- /.all be accou,table 0or -ouble t.e pro0it/ 8.ic. ot.er8i/e 8oul- .a1e accrue- to t.e cooperati1e. *ART. 67. Co3pe,/atio,. ?1@ I, t.e ab/e,ce o0 a,y pro1i/io,/ i, t.e byla8/ 0i>i,2 t.eir co3pe,/atio,, t.e -irector/ /.all ,ot recei1e a,y co3pe,/atio, e>cept 0or rea/o,able per -ie3/4 #ro1i-e- .o8e1er, T.at t.e -irector/ a,- o00icer/ /.all ,ot be e,title- to a,y per -ie3 8.e,, i, t.e prece-i,2 cale,-ar year, t.e cooperati1e reporte- a ,et lo// or .a- a -i1i-e,- rate le// t.a, t.e o00icial i,0latio, rate 0or t.e /a3e year. A,y co3pe,/atio, ot.er t.a, per -ie3/ 3ay be 2ra,te- to -irector/ by a 3a;ority 1ote o0 t.e 3e3ber/ 8it. 1oti,2 ri2.t/ at a re2ular or /pecial 2e,eral a//e3bly 3eeti,2 /peci0ically calle- 0or t.e purpo/e4 #ro1i-e-, T.at ,o a--itio,al co3pe,/atio, ot.er t.a, per -ie3/ /.all be pai- -uri,2 t.e 0ir/t year o0 e>i/te,ce o0 a,y cooperati1e. *?2@ T.e co3pe,/atio, o0 o00icer/ o0 t.e cooperati1e a/ 8ell a/ t.e 3e3ber/ o0 t.e co33ittee a/ 8ell a/ t.e 3e3ber/ o0 t.e co33ittee/ create- pur/ua,t to t.i/ Co-e or it/ byla8/ 3ay be 0i>e- i, t.e byla8/. Page1 *?5@ C,le// alrea-y 0i>e- i, t.e byla8/, t.e co3pe,/atio, o0 all ot.er e3ployee /.all be -eter3i,e- by t.e boar- o0 -irector/.

*ART. 67. Deali,2/ o0 Director/, "00icer/, or Co33ittee Me3ber/. A co,tract e,tere- i,to by t.e cooperati1e 8it. o,e ?1@ or 3ore o0 it/ -irector/, o00icer/, a,- co33ittee 3e3ber/ i/ 1oi-able, at t.e optio, o0 t.e cooperati1e, u,le// all t.e 0ollo8i,2 co,-itio,/ are pre/e,t. *?1@ T.at t.e pre/e,ce o0 /uc. -irector i, t.e boar- 3eeti,2 8.erei, co,tract 8a/ appro1e- 8a/ ,ot ,ece//ary to co,/titute a =uoru3 0or /uc. 3eeti,2A *?2@ T.at t.e 1ote o0 /uc. -irector 8a/ ,ot ,ece//ary 0or t.e appro1al o0 t.e co,tractA *?5@ T.at t.e co,tract i/ 0air a,- rea/o,able u,-er t.e circu3/ta,ce/A a,*?6@ T.at i, t.e ca/e o0 a, o00icer or co33ittee 3e3ber, t.e co,tract 8it. t.e o00icer or co33ittee 3e3ber .a/ bee, pre1iou/ly aut.ori<e- by t.e 2e,eral a//e3bly or by t.e boar- o0 -irector/. *).ere a,y o0 t.e 0ir/t t8o co,-itio,/ /et 0ort. i, t.e prece-i,2 para2rap. i/ ab/e,t, i, t.e ca/e o0 a co,tract 8it. a -irector, /uc. co,tract 3ay be rati0ie- by a t.ree:0ourt./ ?5G6@ 1ote o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3 i, a 3eeti,2 calle- 0or t.e purpo/e4 #ro1i-e-, T.at 0ull -i/clo/ure o0 t.e a-1er/e i,tere/t o0 t.e -irector/ i,1ol1e- i/ 3a-e at /uc. 3eeti,2, a,- t.at t.e co,tract i/ 0air a,- rea/o,able u,-er t.e circu3/ta,ce/. *ART. 6+. Di/loyalty o0 a Director. A -irector 8.o, by 1irtue o0 .i/ o00ice, ac=uire/ 0or .i3/el0 a, opportu,ity 8.ic. /.oul- belo,2 to t.e cooperati1e /.all be liable 0or -a3a2e/ a,- 3u/t accou,t 0or -ouble t.e pro0it/ t.at ot.er8i/e 8oul- .a1e accrue- to t.e cooperati1e by re0u,-i,2 t.e /a3e, u,le// .i/ act .a/ bee, rati0ie- by a t.ree:0ourt./ ?5G6@ 1ote o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3. T.i/ pro1i/io, /.all be applicable, ,ot8it./ta,-i,2 t.e 0act t.at t.e -irector u/e- .i/ o8, 0u,-/ i, t.e 1e,ture. *ART. 69. Ille2al C/e o0 Co,0i-e,tial I,0or3atio,. ?1@ A -irector or o00icer, or a, a//ociate o0 a -irector or o00icer, 8.o, 0or .i/ be,e0it or a-1a,ta2e or t.at o0 a, a//ociate, 3a9e/ u/e o0 co,0i-e,tial i,0or3atio, t.at, i0 2e,erally 9,o8,, 3i2.t rea/o,ably be e>pecte- to a-1er/ely a00ect t.e operatio, a,- 1iability o0 t.e cooperati1e, /.all be .el-4 *?a@ %iable to co3pe,/ate t.e cooperati1e 0or t.e -irect lo//e/ /u00ere- by t.e cooperati1e a/ a re/ult o0 t.e ille2al u/e o0 i,0or3atio,A a,*?b@ Accou,table to t.e cooperati1e 0or a,y -irect be,e0it or a-1a,ta2e recei1e- or yet to be recei1e- by .i3 or .i/ a//ociate, a/ a re/ult o0 t.e tra,/actio,. *?2@ T.e cooperati1e /.all ta9e t.e ,ece//ary /tep/ to e,0orce t.e liabilitie/ -e/cribe- i, /ub/ectio, ?a@ *ART. 50. Re3o1al. All co3plai,t/ 0or t.e re3o1al o0 a,y electe- o00icer /.all be 0ile- 8it. t.e boar- o0 -irector/. &uc. o00icer /.all be 2i1e, t.e opportu,ity to be .ear-. Ma;ority o0 t.e boar- o0 -irector/ 3ay place t.e o00icer co,cer,e- u,-er pre1e,ti1e /u/pe,/io, pe,-i,2 t.e re/olutio, o0 t.e i,1e/ti2atio,. Cpo, 0i,-i,2 o0 a pri3a 0acie e1i-e,ce o0 2uilt, t.e boar- /.all pre/e,t it/ reco33e,-atio, 0or re3o1al to t.e 2e,eral a//e3bly. *A, electi1e o00icer 3ay be re3o1e- by t.ree 0ourt./ ?5G6@ 1ote/ o0 t.e re2ular 3e3ber/ pre/e,t a,co,/tituti,2 a =uoru3, i, a re2ular or /pecial 2e,eral a//e3bly 3eeti,2 calle- 0or t.e purpo/e. T.e o00icer co,cer,e- /.all be 2i1e, a, opportu,ity to be .ear- at /ai- a//e3bly. &ec. 5. Article/ 52, 55, 56, 55, 57, 57, 5+, 59, 70, 71, 72 a,- 75 o0 C.apter $ o, Re/po,/ibilitie/, Ri2.t/ a,#ri1ile2e/ o0 Cooperati1e/ o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER $ RE&#"N&I'I%ITIE&, RI !T& AND #RI$I%E E& "F C""#ERATI$E Page1 *ART. 51. A--re//. E1ery cooperati1e /.all .a1e a, o00icial po/tal a--re// to 8.ic. all ,otice/ a,co33u,icatio,/ /.all be /e,t. &uc. a--re// a,- e1ery c.a,2e t.ereo0 /.all be re2i/tere- 8it. t.e Aut.ority.

*ART. 52. 'oo9/ to be (ept "pe,. ?1@ E1ery cooperati1e /.all .a1e t.e 0ollo8i,2 -ocu3e,t/ rea-y a,acce//ible to it/ 3e3ber/ a,- repre/e,tati1e/ o0 t.e Aut.ority 0or i,/pectio, -uri,2 rea/o,able o00ice .our/ at it/ o00icial a--re//4 *?a@ A copy o0 t.i/ Co-e a,- all ot.er la8/ pertai,i,2 to cooperati1e/A *?b@ A copy o0 t.e re2ulatio,/ o0 t.e Aut.orityA *?c@ A copy o0 t.e article/ o0 cooperatio, a,- byla8/ o0 t.e cooperati1eA *?-@ A re2i/ter o0 3e3ber/A *?e@ T.e boo9/ o0 t.e 3i,ute/ o0 t.e 3eeti,2/ o0 t.e 2e,eral a//e3bly, boar- o0 -irector/ a,- co33itteeA *?0@ &.are boo9/, 8.ere applicableA *?2@ Fi,a,cial /tate3e,tA a,*?.@ &uc. ot.er -ocu3e,t/ a/ 3ay be pre/cribe- by la8/ or t.e byla8/. *?2@ T.e accou,ta,t or t.e boo99eeper o0 t.e cooperati1e /.all be re/po,/ible 0or t.e 3ai,te,a,ce o0 t.e cooperati1e i, accor-a,ce 8it. 2e,erally accepte- accou,ti,2 practice/. !e /.all al/o be re/po,/ible 0or t.e pro-uctio, o0 t.e /a3e at t.e ti3e o0 au-it or i,/pectio,. *T.e au-it co33ittee /.all be re/po,/ible 0or t.e co,ti,uou/ a,- perio-ic re1ie8 o0 t.e boo9/ a,- recor-/ o0 accou,t to e,/ure t.at t.e/e are i, accor-a,ce 8it. 2e,erally accepte- accou,ti,2 practice/. !e /.all al/o be re/po,/ible 0or t.e pro-uctio, o0 t.e /a3e at t.e ti3e o0 au-it or i,/pectio,. *?5@ Eac. cooperati1e /.all 3ai,tai, recor-/ o0 accou,t/ /uc. t.at t.e true a,- correct co,-itio, a,- t.e re/ult/ o0 t.e operatio, o0 t.e cooperati1e 3ay be a/certai,e- t.ere0ro3 at a,y ti3e. T.e 0i,a,cial /tate3e,t/, au-ite- accor-i,2 to 2e,erally accepte- au-iti,2 /ta,-ar-/, pri,ciple/ a,- practice/, /.all be publi/.ea,,ually a,- /.all be 9ept po/te- i, a co,/picuou/ place i, t.e pri,cipal o00ice o0 t.e cooperati1e. *?6@ &ub;ect to t.e perti,e,t pro1i/io,/ o0 t.e Natio,al I,ter,al Re1e,ue Co-e a,- ot.er la8/, a cooperati1e 3ay -i/po/e by 8ay o0 bur,i,2 or ot.er 3et.o- o0 co3plete -e/tructio, a,y -ocu3e,t, recor- or boo9 pertai,i,2 to it/ 0i,a,cial a,- ,o,0i,a,cial operatio,/ 8.ic. are alrea-y 3ore t.a, 0i1e ?5@ year/ ol- e>cept t.o/e relati,2 to tra,/actio,/ 8.ic. are t.e /ub;ect o0 ci1il, cri3i,al a,- a-3i,i/trati1e procee-i,2/. A, i,1e,tory o0 t.e au-ite- -ocu3e,t/, recor-/ a,- boo9/ to be -i/po/e- o0 /.all be -ra8, up a,- certi0ie- to by t.e boar- /ecretary a,- t.e c.air3a, o0 t.e au-it co33ittee a,- pre/e,te- to t.e boar- o0 -irector/ 8.ic. 3ay t.ereupo, appro1e t.e -i/po/itio, o0 /ai- recor-/. *ART. 55. Report/. ?1@ E1ery cooperati1e /.all -ra8 up re2ular report/ o0 it/ pro2ra3 o0 acti1itie/, i,clu-i,2 t.o/e i, pur/ua,ce o0 t.eir /ocio:ci1ic u,-erta9i,2/, /.o8i,2 t.eir pro2re// a,- ac.ie1e3e,t/ at t.e e,- o0 e1ery 0i/cal year. T.e report/ /.all be 3a-e acce//ible to it/ 3e3ber/, a,- copie/ t.ereo0 /.all be 0ur,i/.eto all it/ 3e3ber/ or recor-. T.e/e report/ /.all be 0ile- 8it. t.e Aut.ority 8it.i, o,e .u,-re- t8e,ty ?120@ -ay/ 0ro3 t.e e,- o0 t.e cale,-ar year. T.e 0or3 a,- co,te,t/ o0 t.e report/ /.all be a/ pre/cribe- by t.e rule/ o0 t.e Aut.ority. Failure to 0ile t.e re=uire- report/ /.all /ub;ect t.e accou,table o00icerG/ to 0i,e/ a,pe,altie/ a/ 3ay be pre/cribe- by t.e Aut.ority, a,- /.all be a 2rou,- 0or t.e re1ocatio, o0 aut.ority o0 t.e cooperati1e to operate a/ /uc.. T.e 0i/cal year o0 e1ery cooperati1e /.all be t.e cale,-ar year e>cept a/ 3ay be ot.er8i/e pro1i-e- i, t.e byla8/. *?2@ I0 a cooperati1e 0ail/ to 3a9e, publi/. a,- 0ile t.e report/ re=uire- .erei,, or 0ail/ to i,clu-e t.erei, a,y 3atter re=uire- by t.e Co-e, t.e Aut.ority /.all, 8it.i, 0i0tee, ?15@ -ay/ 0ro3 t.e e>piratio, o0 t.e pre/cribeperio-, /e,- /uc. cooperati1e a 8ritte, ,otice, /tati,2 it/ ,o,:co3plia,ce a,- t.e co33e,/urate 0i,e/ a,pe,altie/ t.at 8ill be i3po/e- u,til /uc. ti3e t.at t.e cooperati1e .a/ co3plie- 8it. t.e re=uire3e,t/. *ART. 56. Re2i/ter o0 Me3ber/ a/ #ri3a Facie E1i-e,ce. A,y re2i/ter or li/t o0 3e3ber/ /.are/ 9ept by a,y re2i/tere- cooperati1e /.all be pri3a 0acie e1i-e,ce o0 t.e 0ollo8i,2 particular/ e,tere- t.erei,4 Page1

*?1@ T.e -ate o, 8.ic. t.e ,a3e o0 a,y per/o, 8a/ e,tere- i, /uc. re2i/ter or li/t o0 3e3berA a,*?2@ T.e -ate o, 8.ic. a,y /uc. per/o, cea/e- to be a 3e3ber. *ART. 55. #robati1e $alue o0 Certi0ie- Copie/ o0 E,trie/. ?1@ A copy o0 a,y e,try i, a,y boo9, re2i/ter or li/t re2ularly 9ept i, t.e cour/e o0 bu/i,e// i, t.e po//e//io, o0 a cooperati1e /.all, i0 -uly certi0ie- i, accor-a,ce 8it. t.e rule/ o0 e1i-e,ce, be a-3i//ible a/ e1i-e,ce o0 t.e e>i/te,ce o0 e,try a,- pri3a 0acie e1i-e,ce o0 t.e 3atter/ a,- tra,/actio,/ t.erei, recor-e-. *?2@ No per/o, or a cooperati1e i/ po//e//io, o0 t.e boo9/ o0 /uc. cooperati1e /.all, i, a,y le2al procee-i,2/ to 8.ic. t.e cooperati1e i/ ,ot a party, be co3pelle- to pro-uce a,y o0 t.e boo9/ o0 t.e cooperati1e, t.e co,te,t/ o0 8.ic. ca, be pro1e- a,- t.e 3atter/, tra,/actio,/ a,- accou,t/ t.erei, recor-e-, u,le// by or-er o0 a co3pete,t court. *ART. 57. 'o,-i,2 o0 Accou,table "00icer/. E1ery -irector, o00icer, a,- e3ployee .a,-li,2 0u,-/, /ecuritie/ or property o, be.al0 o0 a,y cooperati1e /.all be co1ere- by a /urety bo,- to be i//ue- 0or a -uly re2i/terei,/ura,ce or bo,-i,2 co3pa,y 0or t.e 0ait.0ul per0or3a,ce o0 t.eir re/pecti1e -utie/ a,- obli2atio,/. T.e boar- o0 -irector/ /.all -eter3i,e t.e a-e=uacy o0 /uc. bo,-/. *Cpo, t.e 0ili,2 o0 t.e applicatio, 0or re2i/tratio, o0 a cooperati1e, t.e bo,-/ o0 t.e accou,table o00icer/ /.all be re=uire- by t.e Aut.ority. &uc. bo,-/ /.all be re,e8e- 3a,ually a,- t.e Aut.ority /.all accor-i,2ly be i,0or3e- o0 /uc. re,e8al. *ART. 57. #re0ere,ce o0 Clai3/. ?1@ Not8it./ta,-i,2 t.e pro1i/io,/ o0 e>i/ti,2 la8/, rule/ a,- re2ulatio,/ to t.e co,trary, but /ub;ect to t.e prior clai3 o0 t.e Aut.ority, a,y -ebt -ue to t.e cooperati1e 0ro3 t.e 3e3ber /.all co,/titute a 0ir/t lie, upo, a,y ra8 3aterial/, pro-uctio,, i,put/, a,- pro-uct/ pro-uce-A or a,y la,-, buil-i,2, 0acilitie/, e=uip3e,t, 2oo-/ or /er1ice/ ac=uire- a,- .el-, by /uc. 3e3ber t.rou2. t.e procee-/ o0 t.e loa, or cre-it 2ra,te- by t.e cooperati1e to .i3 0or a/ lo,2 a/ t.e /a3e i/ ,ot 0ully pai-. *?2@ No property or i,tere/t o, property 8.ic. i/ /ub;ect to a lie, u,-er para2rap. ?1@ /.all be /ol- ,or co,1eye- to t.ir- partie/ 8it.out t.e prior per3i//io, o0 t.e cooperati1e. T.e lie, upo, t.e property or i,tere/t /.all co,ti,ue to e>it e1e, a0ter t.e /ale or co,1eya,ce t.ereo0 u,til /uc. lie, .a/ bee, -uly e>ti,2ui/.e-. *?5@ Not8it./ta,-i,2 t.e pro1i/io,/ o0 a,y la8 to t.e co,trary, a,y /ale or co,1eya,ce 3a-e i, co,tra1e,tio, o0 para2rap. ?2@ .ereo0 /.all be 1oi-. *ART. 5+. I,/tru3e,t 0or &alary or )a2e De-uctio,. ?1@ A 3e3ber o0 a cooperati1e 3ay, ,ot8it./ta,-i,2 t.e pro1i/io,/ o0 e>i/ti,2 la8/ to t.e co,trary, e>ecute a, i,/tru3e,t i, 0a1or o0 t.e cooperati1e aut.ori<i,2 .i/ e3ployer to -e-uct 0ro3 .i/G.er /alary or 8a2e/, co33utatio, o0 lea1e cre-it/ a,- a,y ot.er 3o,etary be,e0it/ payable to .i3 by t.e e3ployer a,- re3it /uc. a3ou,t a/ 3aybe /peci0ie- i, /ati/0actio, o0 a -ebt or ot.er -e3a,- -ue 0ro3 t.e 3e3ber to t.e cooperati1e. *?2@ Cpo, t.e e>ecutio, o0 /uc. i,/tru3e,t a,- a/ 3ay be re=uire- by t.e cooperati1e co,tai,e- i, a 8ritte, re=ue/t, t.e e3ployer /.all 3a9e t.e -e-uctio, i, accor-a,ce 8it. t.e a2ree3e,t a,- -e-uctio, i, accor-a,ce 8it. t.e a2ree3e,t a,- re3it 0ort.8it. t.e a3ou,t /o -e-ucte- 8it.i, te, ?10@ -ay/ a0ter t.e e,o0 t.e payroll 3o,t. to t.e cooperati1e. T.e e3ployer /.all 3a9e t.e -e-uctio, 0or a/ lo,2 a/ /uc. -ebt or ot.er -e3a,- re3ai,/ u,pai- by t.e e3ployee. *?5@ T.e ter3 *e3ployer* a/ u/e- i, t.i/ article /.all i,clu-e all pri1ate 0ir3/ a,- t.e ,atio,al a,- local 2o1er,3e,t/ a,- 2o1er,3e,t:o8,e- or co,trolle- corporatio,/ 8.o .a1e u,-er t.eir e3ployer a 3e3ber o0 a cooperati1e a,- .a1e a2ree- to carry out t.e ter3/ o0 t.e i,/tru3e,t 3e,tio,e- i, para2rap./ ?1@ a,- ?2@ o0 t.i/ article. *?6@ T.e pro1i/io,/ o0 t.i/ article /.all apply to all /i3ilar a2ree3e,t/ re0erre- to i, para2rap. ?1@ a,- 8ere e,0orce- prior to t.e appro1al o0 t.i/ Co-e.

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*?5@ Not8it./ta,-i,2 t.e pro1i/io,/ o0 e>i/ti,2 la8/ to t.e co,trary, t.e re/po,/ibilitie/ o0 t.e e3ployer a/ /tate- i, para2rap./ ?1@ a,- ?2@ o0 t.i/ article/ /.all be 3a,-atory4 #ro1i-e-, T.at i, t.e ca/e o0 pri1ate e3ployer, t.e actual a,- rea/o,able co/t -e-ucti,2 a,- re3itti,2 3aybe collecte-. *ART. 59. #ri3ary %ie,. : Not8it./ta,-i,2 t.e pro1i/io, o0 a,y la8 8it. t.e co,trary, a cooperati1e /.all .a1e pri3ary lie, upo, t.e capital, -epo/it/ or i,tere/t o0 a 3e3ber 0or a,y -ebt -ue to t.e cooperati1e 0ro3 /uc. a 3e3ber. *ART. 70. Ta> Treat3e,t o0 Cooperati1e. : Duly re2i/tere- cooperati1e/ u,-er t.i/ Co-e 8.ic. -o ,ot tra,/act a,y bu/i,e// 8it. ,o,:3e3ber/ or t.e 2e,eral public /.all ,ot be /ub;ect to a,y ta>e/ a,- 0ee/ i3po/eu,-er t.e i,ter,al re1e,ue la8/ a,- ot.er ta> la8/. Cooperati1e/ ,ot 0alli,2 u,-er t.i/ article /.all be 2o1er,e- by t.e /uccee-i,2 /ectio,. *ART.71. Ta> a,- "t.er E>e3ptio,/. Cooperati1e/ tra,/acti,2 bu/i,e// 8it. bot. 3e3ber/ a,- ,o,: 3e3ber/ /.all ,ot be /ub;ecte- to ta> o, t.eir tra,/actio,/ 8it. 3e3ber/. I, relatio, to t.i/, t.e tra,/actio,/ o0 3e3ber/ 8it. t.e cooperati1e /.all ,ot be /ub;ect to a,y ta>e/ a,- 0ee/, i,clu-i,2 ,ot li3ite- to 0i,al ta>e/ o, 3e3ber/B -epo/it/ a,- -ocu3e,tary ta>. Not8it./ta,-i,2 t.e pro1i/io,/ o0 a,y la8 or re2ulatio, to t.e co,trary, /uc. cooperati1e/ -eali,2 8it. ,o,3e3ber/ /.all e,;oy t.e 0ollo8i,2 ta> e>e3ptio,/4 *?1@ Cooperati1e/ 8it. accu3ulate- re/er1e/ a,- u,-i1i-e- ,et /a1i,2/ o0 ,ot 3ore t.a, Te, 3illio, pe/o/ ?#10,000,000.00@ /.all be e>e3pt 0ro3 all ,atio,al, city, pro1i,cial, 3u,icipal or bara,2ay ta>e/ o0 8.ate1er ,a3e a,- ,ature. &uc. cooperati1e/ /.all be e>e3pt 0ro3 cu/to3/ -utie/, a-1a,ce /ale/ or co3pe,/ati,2 ta>e/ o, t.eir i3portatio, o0 3ac.i,erie/, e=uip3e,t a,- /pare part/ u/e- by t.e3 a,- 8.ic. are ,ot a1ailable locally a certi0ie- by t.e -epart3e,t o0 tra-e a,- i,-u/try ?DTI@. All ta> 0ree i3portatio,/ /.all ,ot be /ol- ,or t.e be,e0icial o8,er/.ip t.ereo0 be tra,/0erre- to a,y per/o, u,til a0ter 0i1e ?5@ year/, ot.er8i/e, t.e cooperati1e a,- t.e tra,/0eree or a//i2,ee /.all be /oli-arily liable to pay t8ice t.e a3ou,t o0 t.e i3po/e- ta> a,- G or -utie/. *?2@ Cooperati1e/ 8it. accu3ulate- re/er1e/ a,- -i1i-e- ,et /a1i,2/ o0 3ore t.a, Te, 3illio, pe/o/ ?#10,000,000.00@ /.all 0ee t.e 0ollo8i,2 ta>e/ at t.e 0ull rate4 *?a@ I,co3e Ta> : ", t.e a3ou,t allocate- 0or i,tere/t o, capital/4 #ro1i-e-, T.at t.e /a3e ta> i/ ,ot co,/e=ue,tly i3po/e- o, i,tere/t i,-i1i-ually recei1e- by 3e3ber/4 #ro1i-e-, 0urt.er, T.at cooperati1e/ re2ar-le// o0 cla//i0icatio,, are e>e3pt i,co3e ta> 0ro3 t.e -ate o0 re2i/tratio, 8it. t.e Aut.orityA *?b@ $alue:A--e- Ta> ", tra,/actio,/ 8it. ,o,:3e3ber/4 #ro1i-e-, .o8e1er, T.at cooperati1e/ -uly re2i/tere- 8it. t.e Aut.orityA are e>e3pt 0ro3 t.e pay3e,t o0 1alue:a--e- ta>A /ub;ect to &ec. 109, /ub: /ectio,/ %, M a,- N o0 Republic Act No. 9557, t.e Natio,al I,ter,al Re1e,ue Co-e, a/ a3e,-e-4 #ro1i-e-, T.at t.e e>e3pt tra,/actio, u,-er &ec. 109 ?%@ /.all i,clu-e /ale/ 3a-e by cooperati1e/ -uly re2i/tere- 8it. t.e Aut.ority or2a,i<e- a,- operate- by it/ 3e3ber to u,-erta9e t.e pro-uctio, a,- proce//i,2 o0 ra8 3aterial/ or o0 2oo-/ pro-uce- by it/ 3e3ber/ i,to 0i,i/.e- or proce// pro-uct/ 0or /ale by t.e cooperati1e to it/ 3e3ber/ a,- ,o,:3e3ber/4 #ro1i-e-, 0urt.er, T.at a,y proce//e- pro-uct or it/ -eri1ati1e ari/i,2 0ro3 t.e ra8 3aterial/ pro-uce- by it/ 3e3ber/, /ol- i, t.e, ,a3e a,- 0or t.e accou,t o0 t.e cooperati1e4 #ro1i-e- , 0i,ally, T.at at lea/t t8e,ty:0i1e per ce,tu3 ?25H@ o0 t.e ,et i,co3e o0 t.e cooperati1e/ i/ retur,e- to t.e 3e3ber/ i, t.e 0or3 o0 i,tere/t a,-Gor patro,a2e re0u,-/A *?c@ All ot.er ta>e/ u,le// ot.er8i/e pro1i-e- .erei,A a,*?-@ Do,atio,/ to c.aritable, re/earc. a,- e-ucatio,al i,/titutio,/ a,- rei,1e/t3e,t to /ocioeco,o3ic pro;ect/ 8it.i, t.e area o0 operatio, o0 t.e cooperati1e 3ay be ta> -e-uctible. *?5@ All cooperati1e/, re2ar-le// o0 t.e a3ou,t o0 accu3ulate- re/er1e/ a,- u,-i1i-e- ,et /a1i,2/ /.all be e>e3pt 0ro3 pay3e,t o0 local ta>e/ a,- ta>e/ o, tra,/actio,/ 8it. ba,9/ a,- i,/ura,ce co3pa,ie/4 #ro1i-e-, T.at all /ale/ or /er1ice/ re,-ere- 0or ,o,:3e3ber/ /.all be /ub;ect to t.e applicable perce,ta2e ta>e/ /ale/ 3a-e by pro-ucer/, 3ar9eti,2 or /er1ice cooperati1e/4 #ro1i-e- 0urt.er, T.at ,ot.i,2 i, t.i/ article /.all preclu-e t.e e>a3i,atio, o0 t.e boo9/ o0 accou,t/ or ot.er accou,ti,2 recor-/ o0 t.e cooperati1e by -uly aut.ori<e- i,ter,al re1e,ue o00icer/ 0or i,ter,al re1e,ue ta> purpo/e/ o,ly, a0ter pre1iou/ aut.ori<atio, by t.e Aut.ority.

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*?6@ I, area/ 8.ere t.ere are ,o a1ailable ,otarie/ public, t.e ;u-2e, e>erci/i,2 .i/ e> o00icio capacity a/ ,otary public, /.all re,-er /er1ice, 0ree o0 c.ar2e, to a,y per/o, or 2roup o0 per/o,/ re=uiri,2 t.e a-3i,i/tratio, o0 oat. or t.e ac9,o8le-23e,t o0 article/ o0 cooperatio, a,- i,/tru3e,t/ o0 loa, 0ro3 cooperati1e/ ,ot e>cee-i,2 Fi1e !u,-re- T.ou/a,- #e/o/ ?#500,000.00@. *?5@ A,y re2i/ter o0 -ee-/ /.all accept 0or re2i/tratio,, 0ree o0 c.ar2e, a,y i,/tru3e,t relati1e to a loa, 3a-e u,-er t.i/ Co-e 8.ic. -oe/ ,ot e>cee- T8o !u,-re- Fi0ty T.ou/a,- #e/o/ ?#250,000.00@ or t.e -ee-/ o0 title o0 a,y property ac=uire- by t.e cooperati1e or a,y paper or -ocu3e,t -ra8, i, co,,ectio, 8it. a,y actio, brou2.t by t.e cooperati1e or 8it. a,y court ;u-23e,t re,-ere- i, it/ 0a1or or a,y i,/tru3e,t relati1e to a bo,o0 a,y accou,table o00icer o0 a cooperati1e 0or t.e 0ait.0ul per0or3a,ce o0 .i/ -utie/ a,- obli2atio,/. *?7@ Cooperati1e/ /.all be e>e3pt 0ro3 t.e pay3e,t o0 all court a,- /.eri00B/ 0ee/ payable to t.e #.ilippi,e o1er,3e,t 0or a,- i, co,,ectio, 8it. all actio,/ brou2.t u,-er t.i/ Co-e, or 8.ere /uc. actio,/ i/ brou2.t by t.e Aut.ority be0ore t.e court, to e,0orce t.e pay3e,t o0 obli2atio,/ co,tracte- i, 0a1or o0 t.e cooperati1e. *?7@ All cooperati1e/ /.all be e>e3pt 0ro3 putti,2 up a bo,- 0or bri,2i,2 a, appeal a2ai,/t t.e -eci/io, o0 a, i,0erior court or 0or /ee9i,2 to /et a/i-e a,y t.ir- party clai34 #ro1i-e-, T.at a certi0icatio, o0 t.e Aut.ority /.o8i,2 t.at t.e ,et a//et/ o0 t.e cooperati1e are i, e>ce// o0 t.e a3ou,t o0 t.e bo,- re=uire- by t.e court i, /i3ilar ca/e/ /.all be accepte- by t.e court a/ a /u00icie,t bo,-. *?+@ A,y /ecurity i//ue- by cooperati1e/ /.all be e>e3pt 0ro3 t.e pro1i/io,/ o0 t.e &ecuritie/ Act pro1i-e/uc. /ecurity /.all ,ot be /peculati1e. *ART. 72. #ri1ile2e/ o0 Cooperati1e/. Cooperati1e/ re2i/tere- u,-er t.i/ Co-e, ,ot8it./ta,-i,2 t.e pro1i/io,/ o0 a,y la8 to t.e co,trary, be al/o accor-e- t.e 0ollo8i,2 pri1ile2e/4 *?1@ Cooperati1e/ /.all e,;oy t.e pri1ile2e o0 -epo/iti,2 t.eir /eale- ca/. bo>e/ or co,tai,er/, -ocu3e,t/ or a,y 1aluable paper/ i, t.e /a0e/ o0 t.e 3u,icipal or city trea/urer/ a,- ot.er 2o1er,3e,t o00ice/ 0ree o0 c.ar2e, a,- t.e cu/to-ia, o0 /uc. article/ /.all i//ue a receipt ac9,o8le-2i,2 t.e article/ recei1e- -uly 8it,e//e- by a,ot.er per/o,A *?2@ Cooperati1e/ or2a,i<e- a3o,2 2o1er,3e,t e3ployee/, ,ot8it./ta,-i,2 a,y la8 or re2ulatio, to t.e co,trary, /.all e,;oy t.e 0ree u/e o0 a,y a1ailable /pace i, t.eir a2e,cy, 8.et.er o8,e- or re,te- by t.e o1er,3e,tA *?5@ Cooperati1e/ re,-eri,2 /pecial type/ o0 /er1ice/ a,- 0acilitie/ /uc. a/ col- /tora2e, ice pla,t, electricity, tra,/portatio,, a,- /i3ilar /er1ice/ a,- 0acilitie/ /.all /ecure a 0ra,c.i/e t.ere0ore, a,- /uc. cooperati1e/ /.all ope, t.eir 3e3ber/.ip to all per/o,/ =uali0ie- i, t.eir area/ o0 operatio,A *?6@ I, area/ 8.ere appropriate cooperati1e/ e>i/t, t.e pre0ere,tial ri2.t to /upply 2o1er,3e,t i,/titutio,/ a,a2e,cie/ rice, cor, a,- ot.er 2rai,/, 0i/. a,- ot.er 3ari,e pro-uct/, 3eat, e22/, 3il9, 1e2etable/, tobacco a,- ot.er a2ricultural co33o-itie/ pro-uce- by t.eir 3e3ber/ /.all be 2ra,te- to t.e cooperati1e/ co,cer,e-A *?5@ #re0ere,tial treat3e,t i, t.e allocatio, o0 0ertili<er/, i,clu-i,2 /ee-/ a,- ot.er a2ricultural i,put/ a,i3ple3e,t/, a,- i, rice -i/tributio, /.all be 2ra,te- to cooperati1e/ by t.e appropriate 2o1er,3e,t a2e,cie/A *?7@ #re0ere,tial a,- e=uitable treat3e,t i, t.e allocatio, or co,trol o0 botto3rie/ o0 co33ercial /.ippi,2 1e//el/ i, co,,ectio, 8it. t.e /.ip3e,t o0 2oo-/ a,- pro-uct/ o0 cooperati1e/A *?7@ Cooperati1e/ a,- t.eir 0e-eratio,/, /uc. a/ 0ar3 a,- 0i/.ery pro-ucer/ a,- /upplier/, 3ar9et 1e,-or/ a,/uc. ot.er cooperati1e/, 8.ic. .a1e 0or t.eir pri3ary purpo/e t.e pro-uctio, a,-Gor t.e 3ar9eti,2 o0 pro-uct/ 0ro3 a2riculture, 0i/.erie/ a,- /3all e,trepre,eurial i,-u/trie/ a,- 0e-eratio,/ t.ereo0, /.all .a1e pre0ere,tial ri2.t/ i, t.e 3a,a2e3e,t o0 public 3ar9et/ a,-Gor lea/e o0 public 3ar9et 0acilitie/, /tall/ or /pace/4 #ro1i-e-, T.at t.e/e ri2.t/ /.all o,ly be utili<e- e>clu/i1ely by cooperati1e/4 #ro1i-e-, 0urt.er, T.at ,o cooperati1e 0or3i,2 a ;oi,t 1e,ture, part,er/.ip or a,y ot.er /i3ilar arra,2e3e,t 8it. a ,o,:cooperati1e e,tity ca, utili<e t.e/e ri2.t/A

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*?+@ Cooperati1e/ e,2a2e- i, cre-it /er1ice/ a,-Gor 0e-eratio,/ /.all be e,title- to loa,/ cre-it li,e/, re-i/cou,ti,2 o0 t.eir loa, ,ote/, a,- ot.er eli2ible paper/ 8it. t.e De1elop3e,t 'a,9 o0 t.e #.ilippi,e/, t.e %a,- 'a,9 o0 t.e #.ilippi,e/ a,- ot.er 0i,a,cial i,/titutio,/ e>cept t.e 'a,29o &e,tral ,2 #ilipi,a/ ?'&#@A *T.e #.ilippi,e Depo/it I,/ura,ce Corporatio, ?#DIC@ a,- ot.er 2o1er,3e,t a2e,cie/, 2o1er,3e,t:o8,ea,- co,trolle- corporatio,/ a,- 2o1er,3e,t 0i,a,cial i,/titutio,/ /.all pro1i-e tec.,ical a//i/ta,ce to re2i/tere- ,atio,al 0e-eratio,/ a,- u,io,/ o0 cooperati1e/ 8.ic. .a1e /i2,i0ica,t e,2a2e3e,t i, /a1i,2/ a,cre-it operatio,/ i, or-er 0or t.e/e 0e-eratio,/ a,- u,io,/ to e/tabli/. a,-Gor /tre,2t.e, t.eir o8, auto,o3ou/ cooperati1e -epo/it i,/ura,ce /y/te3/A *?9@ A public tra,/port /er1ice cooperati1e 3ay be e,title- to 0i,a,ci,2 /upport 0or t.e ac=ui/itio, a,-Gor 3ai,te,a,ce o0 la,- a,- /ea tra,/port e=uip3e,t, 0acilitie/ a,- part/ t.rou2. t.e pro2ra3 o0 t.e 2o1er,3e,t 0i,a,cial i,/titutio,/. It /.all .a1e t.e pre0ere,tial ri2.t to t.e 3a,a2e3e,t a,- operatio, o0 public ter3i,al/ a,- port/ 8.et.er la,- or /ea tra,/port 8.ere t.e cooperati1e operate/ a,- o, /ecuri,2 a 0ra,c.i/e 0or acti1e or pote,tial route/ 0or t.e public tra,/portA *?10@ Cooperati1e/ tra,/acti,2 bu/i,e// 8it. t.e o1er,3e,t o0 t.e #.ilippi,e/ or a,y o0 it/ political /ub-i1i/io,/ or a,y o0 it/ a2e,cie/ or i,/tru3e,talitie/, i,clu-i,2 2o1er,3e,t:o8,e- a,- co,trollecorporatio,/ /.all be e>e3pt 0ro3 pre=uali0icatio, bi--i,2 re=uire3e,t/ ,ot8it./ta,-i,2 t.e pro1i/io,/ o0 Republic Act No.91+6, ot.er8i/e 9,o8, a/, t.e o1er,3e,t #rocure3e,t ActA *?11@ Cooperati1e /.all e,;oy t.e pri1ile2e o0 bei,2 repre/e,te- by t.e pro1i,cial or city 0i/cal or t.e "00ice o0 t.e &olicitor e,eral, 0ree o0 c.ar2e, e>cept 8.e, t.e a-1er/e party i/ t.e Republic o0 t.e #.ilippi,e/A *?12@ Cooperati1e/ or2a,i<e- by 0aculty 3e3ber/ a,- e3ployee/ o0 e-ucatio,al i,/titutio,/ /.all .a1e t.e pre0ere,tial ri2.t i, t.e 3a,a2e3e,t o0 t.e ca,tee, a,- ot.er /er1ice/ relate- to t.e operatio, o0 t.e e-ucatio,al i,/titutio, 8.ere t.ey are e3ploye-4 #ro1i-e-, T.at /uc. /er1ice/ are operate- 8it.i, t.e pre3i/e/ o0 t.e /ai- e-ucatio,al i,/titutio,A a,*?15@ T.e appropriate .ou/i,2 a2e,cie/ a,- 2o1er,3e,t 0i,a,cial i,/titutio,/ /.all create a /pecial 8i,-o8 0or 0i,a,ci,2 .ou/i,2 pro;ect/ u,-erta9e, by cooperati1e/, 8it. i,tere/t rate/ a,- ter3/ e=ual to, or better t.a, t.o/e 2i1e, 0or /ociali<e- .ou/i,2 pro;ect/. T.i/ 0i,a,ci,2 /.all be i, t.e 0or3 o0 bla,9et loa,/ or lo,2:ter3 8.ole/ale loa,/ to =uali0ie- cooperati1e/, 8it.out ,ee- 0or i,-i1i-ual proce//i,2. *T.e Aut.ority, i, co,/ultatio, 8it. t.e appropriate 2o1er,3e,t a2e,cie/ a,- co,cer,e- cooperati1e /ector, /.all i//ue rule/ a,- re2ulatio,/ o, all 3atter/ co,cer,i,2 .ou/i,2 cooperati1e/.* &ec. 7. Article 76 o0 C.apter $I o, I,/ol1e,cy o0 Cooperati1e/ o0 t.e /a3e Co-e i/ .ereby re,u3bere- a,a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER $I IN&"%$ENCJ "F C""#ERATI$E& *ART. 75. #rocee-i,2 Cpo, I,/ol1e,cy.: I, ca/e a cooperati1e i/ u,able to 0ul0ill it/ obli2atio,/ to cre-itor/ -ue to i,/ol1e,cy, /uc. cooperati1e 3ay apply 0or /uc. re3e-ie/ a/ it 3ay -ee3 0it u,-er t.e pro1i/io,/ o0 Act No. 1957, a/ a3e,-e-, ot.er8i/e 9,o8, a/ t.e I,/ol1e,cy %a8. *Not.i,2 i, t.i/ Article, .o8e1er, preclu-e/ cre-itor/ 0ro3 /ee9i,2 protectio, 0ro3 /ai- i,/ol1e,cy la8.* &ec. 7. Article/ 75, 77. 77, 7+, 79, 70 a,- 71 o0 C.apter $II o, Di//olutio, o0 Cooperati1e/ o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER $II DI&&"%CTI"N "F C""#ERATI$E& *ART. 76. $olu,tary Di//olutio, ).ere ,o Cre-itor/ are A00ecte-. I0 t.e -i//olutio, o0 a cooperati1e -oe/ ,ot pre;u-ice t.e ri2.t/ o0 a,y cre-itor .a1i,2 a clai3 a2ai,/t it, t.e -i//olutio, 3ay be a00ecte- by a 3a;ority 1ote o0 t.e boar- o0 -irector/, a,- by a re/olutio, -uly a-opte- by t.e a00ir3ati1e 1ote o0 at lea/t t.ree:0ourt./ ?5G6@ Page1

o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3 at a 3eeti,2 to be .el- upo, call o0 t.e -irector/4 #ro1i-e-, T.at t.e ,otice o0 ti3e, place a,- ob;ect o0 t.e 3eeti,2 /.all be publi/.e- 0or t.ree ?5@ co,/ecuti1e 8ee9/ i, a ,e8/paper publi/.e- i, t.e place 8.ere t.e pri,cipal o00ice o0 /ai- cooperati1e i/ locate-, or i0 ,o ,e8/paper i/ publi/.e- i, /uc. place, i, a ,e8/paper o0 2e,eral circulatio, i, t.e #.ilippi,e/4 #ro1i-e-, 0urt.er, T.at t.e ,otice o0 /uc. 3eeti,2 i/ /e,t to eac. 3e3ber o0 recor- eit.er by re2i/tere- 3ail or by per/o,al -eli1ery at lea/t t.irty ?50@ -ay/ prior to /ai- 3eeti,2. A copy o0 t.e re/olutio, aut.ori<i,2 t.e -i//olutio, /.all be certi0ie- to by a 3a;ority o0 t.e boar- o0 -irector/ a,- cou,ter/i2,e- by t.e boar/ecretary. T.e Aut.ority /.all t.ereupo, i//ue t.e certi0icate o0 -i//olutio,. *ART. 75. $olu,tary Di//olutio, ).ere Cre-itor/ Are A00ecte-. ).ere t.e -i//olutio, o0 a cooperati1e 3ay pre;u-ice t.e ri2.t/ o0 a,y cre-itor, t.e petitio, 0or -i//olutio, /.all be 0ile- 8it. t.e Aut.ority. T.e petitio, /.all be /i2,e- by a 3a;ority o0 it/ boar- or -irector/ or ot.er o00icer/ 3a,a2i,2 it/ a00air/, 1eri0ie- by it/ c.airper/o, or boar- /ecretary or o,e o0 it/ -irector/ a,- /.all /et 0ort. all clai3/ a,- -e3a,-/ a2ai,/t it a,- t.at it/ -i//olutio, 8a/ re/ol1e- upo, by t.e a00ir3ati1e 1ote o0 at lea/t t.ree:0ourt./ ?5G6@ o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3 at a 3eeti,2 calle- 0or t.at purpo/e. *I0 t.e petitio, i/ /u00icie,t i, 0or3 a,- /ub/ta,ce, t.e Aut.ority /.all i//ue a, or-er reciti,2 t.e purpo/e o0 t.e petitio, a,- /.all 0i> a -ate 8.ic. /.all ,ot be le// t.a, t.irty ?50@ ,or 3ore t.a, /i>ty ?70@ -ay/ a0ter t.e e,try o0 t.e or-er. 'e0ore /uc. -ate, a copy o0 t.e or-er /.all be publi/.e- at lea/t o,ce a 8ee9 0or t.ree ?5@ co,/ecuti1e 8ee9/ i, a ,e8/paper o0 2e,eral circulatio, publi/.e- i, t.e 3u,icipality or city 8.ere t.e pri,cipal o00ice o0 t.e cooperati1e i/ /ituate- or i, t.e ab/e,ce o0 /uc. local ,e8/paper, i, a ,e8/paper o0 2e,eral circulatio, i, t.e #.ilippi,e/, a,- a copy /.all li9e8i/e be po/te- 0or t.ree ?5@ co,/ecuti1e 8ee9/ i, t.ree ?5@ public place/ i, t.e 3u,icipality or city 8.ere t.e cooperati1eB/ o00ice i/ locate-. *Cpo, e>piry o0 t.e 0i1e ?5@ -ay ,otice to 0ile ob;ectio,/, t.e Aut.ority /.all procee- to .ear t.e petitio, a,- try a,y i//ue rai/e- i, t.e ob;ectio, 0ile-A a,- i0 t.e ob;ectio, i/ /u00icie,t a,- t.e 3aterial alle2atio,/ o0 t.e petitio, are pro1e,, it /.all i//ue a, or-er to -i//ol1e t.e cooperati1e a,- -irect t.e -i/po/itio, o0 it/ a//et/ i, accor-a,ce 8it. e>i/ti,2 rule/ a,- re2ulatio,/. T.e or-er o0 -i//olutio, /.all /et 0ort. t.erei,4 *?1@ T.e a//et/ a,- liabilitie/ o0 t.e cooperati1eA *?2@ T.e clai3 o0 a,y cre-itorA *?5@ T.e ,u3ber o0 3e3ber/A a,*?6@ T.e ,ature a,- e>te,- o0 t.e i,tere/t/ o0 t.e 3e3ber/ o0 t.e cooperati1e. *ART. 77. I,1olu,tary Di//olutio,. A cooperati1e 3ay be -i//ol1e- by or-er o0 a co3pete,t court a0ter -ue .eari,2 o, t.e 2rou,-/ o04 *?1@ $iolatio, o0 a,y la8, re2ulatio, or pro1i/io,/ o0 it/ byla8/A or *?2@ I,/ol1e,cy. *ART. 77. Di//olutio, by "r-er o0 t.e Aut.ority. T.e Aut.ority 3ay /u/pe,- or re1o9e, a0ter -ue ,otice a,.eari,2, t.e certi0icate o0 re2i/tratio, o0 a cooperati1e o, a,y o0 t.e 0ollo8i,2 2rou,-/4 *?1@ !a1i,2 obtai,e- it/ re2i/tratio, by 0rau-A *?2@ E>i/ti,2 0or a, ille2al purpo/eA *?5@ )ill0ul 1iolatio,, -e/pite ,otice by t.e Aut.ority, o0 t.e pro1i/io,/ o0 t.i/ Co-e or it/ byla8/A *?6@ )ill0ul 0ailure to operate o, a cooperati1e ba/i/A a,Page1 *?5@ Failure to 3eet t.e re=uire- 3i,i3u3 ,u3ber o0 3e3ber/ i, t.e cooperati1e.

*ART. 7+. Di//olutio, by Failure to "r2a,i<e a,- "perate.: I0 a cooperati1e .a/ ,ot co33e,ce- bu/i,e// a,it/ operatio, 8it.i, t8o ?2@ year/ a0ter t.e i//ua,ce o0 it/ certi0icate o0 re2i/tratio, or .a/ ,ot carrie- o, it/ bu/i,e// 0or t8o ?2@ co,/ecuti1e year/, t.e Aut.ority /.all /e,- a 0or3al ,otice to t.e /ai- cooperati1e to /.o8 cau/e a/ to it/ 0ailure to operate. Failure o0 t.e cooperati1e to pro3ptly pro1i-e ;u/ti0iable cau/e 0or it/ 0ailure to operate /.all 8arra,t t.e Aut.ority to -elete it/ ,a3e 0ro3 t.e ro/ter o0 re2i/tere- cooperati1e/ a,- /.all be -ee3e- -i//ol1e-. *ART. 79. %i=ui-atio, o0 a Cooperati1e. E1ery cooperati1e 8.o/e c.arter e>pire/ by it/ o8, li3itatio, or 8.o/e e>i/te,ce i/ ter3i,ate- by 1olu,tary -i//olutio, or t.rou2. a, appropriate ;u-icial procee-i,2 /.all ,e1ert.ele// co,ti,ue to e>i/t 0or t.ree ?5@ year/ a0ter t.e ti3e it i/ -i//ol1e-A ,ot to co,ti,ue t.e bu/i,e// 0or 8.ic. it 8a/ e/tabli/.e- but 0or t.e purpo/e o0 pro/ecuti,2 a,- -e0e,-i,2 /uit/ by or a2ai,/t itA /ettle3e,t a,clo/ure o0 it/ a00air/A -i/po/itio,, co,1eya,ce a,- -i/tributio, o0 it/ propertie/ a,- a//et/. *At a,y ti3e -uri,2 t.e /ai- t.ree ?5@ year/, t.e cooperati1e i/ aut.ori<e- a,- e3po8ere- to co,1ey all o0 it/ propertie/ to tru/tee/ 0or t.e be,e0it o0 it/ 3e3ber/, cre-itor/ a,- ot.er per/o,/ i, i,tere/t. Fro3 a,- a0ter a,y /uc. co,1eya,ce, all i,tere/t/ 8.ic. t.e cooperati1e .a- i, t.e propertie/ are ter3i,ate-. *Cpo, t.e 8i,-i,2 up o0 t.e cooperati1e a00air/, a,y a//et -i/tributable to a,y cre-itor, /.are.ol-er or 3e3ber 8.o i/ u,9,o8, or ca,,ot be 0ou,- /.all be 2i1e, to t.e 0e-eratio, or u,io, to 8.ic. t.e cooperati1e i/ a00iliate- 8it.. *A cooperati1e /.all o,ly -i/tribute it/ a//et/ or propertie/ upo, la80ul -i//olutio, a,- a0ter pay3e,t o0 all it/ -ebt/ a,- liabilitie/, e>cept i, t.e ca/e o0 -ecrea/e o0 /.are capital o0 t.e cooperati1e a,- a/ ot.er8i/e allo8e- by t.i/ Co-e. *ART. 70. Rule/ a,- Re2ulatio,/ o, %i=ui-atio,. T.e Aut.ority /.all i//ue t.e appropriate i3ple3e,ti,2 2ui-eli,e/ 0or t.e li=ui-atio, o0 cooperati1e/.* &ec. +. Article/ 72, 75, 76, 75, 77, 77, 7+, 79 a,- +0 o0 C.apter $III o, Capital, #roperty, a,- Fu,-/ o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER $III CA#ITA%, #R"#ERTJ, AND FCND& *ART. 71. Capital. : T.e capitali<atio, o0 cooperati1e/ a,- t.e accou,ti,2 proce-ure/ /.all be 2o1er,e- by t.e pro1i/io,/ o0 t.i/ Co-e a,- t.e re2ulatio,/ 8.ic. /.all be i//ue-. *ART. 72. Capital &ource/.: Cooperati1e/ re2i/tere- u,-er t.i/ Co-e 3ay -eri1e t.eir capital 0ro3 a,y or all o0 t.e 0ollo8i,2 /ource/4 *?1@ Me3berB/ /.are capitalA *?2@ %oa,/ a,- barro8i,2/ i,clu-i,2 -epo/it/A *?5@ Re1ol1i,2 capital 8.ic. co,/i/t/ o0 t.e -e0erre- pay3e,t o0 patro,a2e re0u,-/, or i,tere/t o, /.are capitalA a,*?6@ &ub/i-ie/, -o,atio,/, le2acie/, 2ra,t/, ai-/ a,- /uc. ot.er a//i/ta,ce 0ro3 a,y local or 0orei2, i,/titutio, 8.et.er public or pri1ate4 #ro1i-e-, T.at capital co3i,2 0ro3 /uc. /ub/i-e/, -o,atio,/, le2acie/, 2ra,t/, ai-/ a,- ot.er a//i/ta,ce /.all ,ot be -i1i-e- i,to i,-i1i-ual /.are capital .ol-i,2/ at a,y ti3e but /.all i,/tea0or3 part o0 t.e -o,ate- capital or 0u,- o0 t.e cooperati1e. *Cpo, -i//olutio,, /uc. -o,ate- capital /.all be /ub;ect to e/c.eat. *ART. 75. %i3itatio, o, &.are Capital !ol-i,2/.: No 3e3ber o0 pri3ary cooperati1e ot.er t.a, cooperati1e it/el0 /.all o8, or .ol- 3ore t.a, te, per ce,tu3 ?10H@ o0 t.e /.are capital o0 t.e cooperati1e.

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*).ere a 3e3ber o0 cooperati1e -ie/, .i/ .eir /.all be e,title- to t.e /.are/ o0 t.e -ece-e,t4 #ro1i-e-, T.at t.e total /.are .ol-i,2 o0 t.e .eir -oe/ ,ot e>cee- te, per ce,tu3 ?10H@ o0 t.e /.are capital o0 t.e cooperati1eA #ro1i-e-, 0urt.er, T.at t.e .eir =uali0y a,- i/ a-3itte- a/ 3e3ber/ o0 t.e cooperati1e4 #ro1i-e0i,ally , T.at 8.ere t.e .eir 0ail/ to =uali0y a/ a 3e3ber or 8.ere .i/ total /.are .ol-i,2 e>cee-/ te, per ce,tu3 ?10H@ o0 t.e /.are capital , t.e /.are or /.are/ e>ce// 8ill re1ert to t.e cooperati1e upo, pay3e,t to t.e .eir o0 t.e 1alue o0 /uc. /.are/. *ART. 76. A//i2,3e,t o0 &.are Capital Co,tributio, or I,tere/t.: &ub;ect to t.e pro1i/io,/ o0 t.i/ Co-e, ,o 3e3ber /.all tra,/0er .i/ /.are/ or i,tere/t i, t.e cooperati1e or a,y part t.ereo0 u,le//. *?1@ !e .a/ .el- /uc. /.are capital co,tributio, or i,tere/t 0or ,ot le// t.a, o,e ?1@ year. *?2@ T.e a//i2,3e,t i/ 3a-e to t.e cooperati1e or to a 3e3ber o0 t.e cooperati1e or to a per/o, 8.o 0all/ 8it.i, t.e 0iel- o0 t.e 3e3ber/.ip o0 t.e cooperati1eA a,*?5@ T.e boar- o0 -irector/ .a/ appro1e- /uc. a//i2,3e,t. *ART.75. Capital 'uil-:Cp.: Te byla8/ o0 e1ery cooperati1e /.all be pro1i-e- 0or a rea/o,able a,- reali/tic 3e3ber capital buil-:up pro2ra3 to allo8 t.e co,ti,ui,2 2ro8t. o0 t.e 3e3ber/B i,1e/t3e,t i, t.eir cooperati1e a/ t.eir eco,o3ic co,-itio,/ co,ti,ue to i3pro1e. *ART.77. &.are/.: T.e ter3 */.are* re0er/ to a u,it o0 capital i, a pri3ary cooperati1e t.e par 1alue o0 8.ic. 3ay be 0i>e- to a,y 0i2ure ,ot 3ore t.a, ",e t.ou/a,- pe/o/ ?#1,000.00@. T.e /.are o0 capital o0 a cooperati1e i/ t.e 3o,ey pai- or re=uire- to be pai- 0or t.e operatio,/ o0 t.e cooperati1e. T.e 3et.o- 0or t.e i//ua,ce o0 /.are certi0icate/ /.all pre/cribe- i, it/ byla8/. *ART.77. Fi,e/. : T.e byla8/ o0 a cooperati1e 3ay pre/cribe a 0i,e o, u,pai- /ub/cribe- /.are capital. #ro1i-e-, t.at /uc. 0i,e i/ 0air a,- rea/o,able u,-er t.e circu3/ta,ce/. *ART.7+. I,1e/t3e,t o0 Capital. : A cooperati1e 3ay i,1e/t it/ capital i, a,y o0 t.e 0ollo8i,24 *?a@ I, /.are/ or -ebe,ture/ or /ecuritie/ o0 a,y ot.er cooperati1eA *?b@ I, a,y reputable ba,9 i, t.e locality, or a,y cooperati1eA *?c@ I, /ecuritie/ i//ue- or 2uara,tee- by t.e o1er,3e,tA

*?-@ I, real /tate pri3arily 0or t.e u/e o0 t.e cooperati1e or it/ 3e3ber/A or *?e@ I, a,y ot.er 3a,,er aut.ori<e- i, t.e byla8/. *ART. 79. Re1ol1i,2 Capital. T.e 2e,eral a//e3bly o0 a,y cooperati1e 3ay aut.ori<e t.e boar- o0 -irector/ to rai/e a re1ol1i,2 capital to /tre,2t.e, it/ capital /tructure by -e0erri,2 t.e pay3e,t o0 patro,a2e re0u,-/ a,i,tere/t o, /.are capital or by t.e aut.ori<e- -e-uctio, o0 a perce,ta2e 0ro3 t.e procee-/ o0 pro-uct/ /ol- or /er1ice/ re,-ere-, or per u,it o0 pro-uct or /er1ice/ .a,-le-. T.e boar- o0 -irector/ /.all i//ue re1ol1i,2 capital certi0icate/ 8it. /erial ,u3ber, ,a3e, a3ou,t, a,- rate o0 i,tere/t to be pai- a,- /.all -i/ti,ctly /et 0ort. t.e ti3e o0 retire3e,t o0 /uc. certi0icate/ a,- t.e a3ou,t/ to be retur,e-.* &ec. 9. Article/ +1, +2, +5, +6 a,- +5 o0 C.apter IK o, Au-it, I,=uiry a,- Me3ber/B Ri2.t to E>a3i,e o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 *ART. +0. A,,ual Au-it. Cooperati1e/ re2i/tere- u,-er t.i/ Co-e /.all be /ub;ect to a, a,,ual 0i,a,cial, per0or3a,ce a,- /ocial au-it. T.e 0i,a,cial au-it /.all be co,-ucte- by a, e>ter,al au-itor 8.o /ati/0ie/ all t.e 0ollo8i,2 =uali0icatio,/4 Page1 *?1@ !e i/ i,-epe,-e,t o0 t.e cooperati1e or a,y o0 it/ /ub/i-iary t.at .e i/ au-iti,2A a,-

*?2@ !e i/ a 3e3ber i, 2oo- /ta,-i,2 o0 t.e #.ilippi,e I,/titute o0 Certi0ie- #ublic Accou,ta,t/ ?#IC#A@ a,- i/ accre-ite- by bot. t.e 'oar- a,- Accou,ta,cy a,- t.e Aut.ority. *T.e /ocial au-it /.all be co,-ucte- by a, i,-epe,-e,t /ocial au-itor accre-ite- by t.e Aut.ority. *#er0or3a,ce a,- /ocial au-it report/ 8.ic. co,tai, t.e 0i,-i,2/ a,- reco33e,-atio,/ o0 t.e au-itor /.all be /ub3itte- to t.e boar- o0 -irector/. *T.e Aut.ority, i, co,/ultatio, 8it. t.e cooperati1e /ector, /.all pro3ul2ate t.e rule/ a,- /ta,-ar-/ 0or t.e /ocial au-it o0 cooperati1e/. *ART. +1. Au-it Report. T.e au-itor /.all /ub3it to t.e boar- o0 -irector/ a,- to t.e au-it co33ittee t.e 0i,a,cial au-it report 8.ic. /.all be i, accor-a,ce 8it. t.e 2e,erally accepte- au-iti,2 /ta,-ar-/ 0or cooperati1e/ a/ ;oi,tly pro3ul2ate- by t.e #.ilippi,e I,/titute o0 Certi0ie- #ublic Accou,ta,t/ ?#IC#A@ a,- t.e Aut.ority. *T.erea0ter, t.e boar- o0 -irector/ /.all pre/e,t t.e co3plete au-it report to t.e 2e,eral a//e3bly i, it/ ,e>t 3eeti,2. *ART. +2. No,liability 0or De0a3atio,/. T.e au-itor i/ ,ot liable to a,y per/o, i, a, actio, 0or -e0a3atio, ba/eo, a,y act, -o,e, or a,y /tate3e,t 3a-e by .i3 i, 2oo- 0ait. i, co,,ectio, 8it. a,y 3atter .e i/ aut.ori<e- or re=uire- to -o pur/ua,t to t.i/ Co-e. *ART. +5. Ri2.t to E>a3i,e. A 3e3ber /.all .a1e t.e ri2.t to e>a3i,e t.e recor-/ re=uire- to be 9ept by t.e cooperati1e u,-er Article 52 o0 t.i/ Co-e -uri,2 rea/o,able .our/ o, bu/i,e// -ay/ a,- .e 3ay -e3a,-, i, 8riti,2, 0or a copy o0 e>cerpt/ 0ro3 /ai- recor-/ 8it.out c.ar2e e>cept t.e co/t o0 pro-uctio,. *A,y o00icer o0 t.e cooperati1e 8.o /.all re0u/e to allo8 a,y 3e3ber o0 t.e cooperati1e to e>a3i,e a,- copy e>cerpt/ 0ro3 it/ recor-/ /.all be liable to /uc. 3e3ber 0or -a3a2e/ a,- /.all be 2uilty o0 a, o00e,/e 8.ic. /.all be pu,i/.able u,-er Article 160 o0 t.i/ Co-e4 #ro1i-e-, T.at i0 /uc. re0u/al i/ pur/ua,t to a re/olutio, or or-er o0 t.e boar- o0 -irector/, t.e liability u,-er t.i/ article /.all be i3po/e- upo, t.e -irector/ 8.o 1ote- 0or /uc. re0u/al4 #ro1i-e-, 0urt.er, T.at it /.all be a -e0e,/e to a,y actio, u,-er t.i/ article t.at t.e 3e3ber -e3a,-i,2 to e>a3i,e a,- copy e>cerpt/ 0ro3 t.e cooperati1e recor-/ .a/ i3properly u/e- a,y i,0or3atio, /ecure- t.rou2. a,y prior e>a3i,atio, o0 t.e recor-/ o0 /uc. cooperati1e or 8a/ ,ot acti,2 i, 2oo- 0ait. or 0or a le2iti3ate purpo/e i, 3a9i,2 .i/ -e3a,-. *ART. +6. &a0ety o0 Recor-/. E1ery cooperati1e /.all, at it/ pri,cipal o00ice, 9eep a,- care0ully pre/er1e t.e recor-/ re=uire- by t.i/ Co-e to be prepare- a,- 3ai,tai,e-. It /.all ta9e all ,ece//ary precautio, to pre1e,t it/ lo//, -e/tructio, or 0al/i0icatio,.* &ec. 10. Article/ +7 a,- +7 o0 C.apter K o, Allocatio, a,- Di/tributio, o0 Net &urplu/ o0 t.e /a3e Co-e are .ereby re,u3bere- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER K A%%"CATI"N AND DI&TRI'CTI"N "F NET &CR#%C& *ART. +5. Net &urplu/. Not8it./ta,-i,2 t.e pro1i/io,/ o0 e>i/ti,2 la8/, t.e ,et /urplu/ o0 cooperati1e/ /.all be -eter3i,e- i, accor-a,ce 8it. it/ byla8/. E1ery cooperati1e /.all -eter3i,e it/ ,et /urplu/ at t.e clo/e o0 e1ery 0i/cal year a,- at /uc. ot.er ti3e/ a/ 3ay be pre/cribe- by t.e byla8/. *A,y pro1i/io, o0 la8 to t.e co,trary ,ot8it./ta,-i,2, t.e ,et /urplu/ /.all ,ot be co,/true- a/ pro0it but a/ a, e>ce// o0 pay3e,t/ 3a-e by t.e 3e3ber/ 0or t.e loa,/ borro8e-, or t.e 2oo-/ a,- /er1ice/ a1aile- by t.e3 0ro3 t.e cooperati1e or t.e -i00ere,ce o0 t.e ri2.t0ul a3ou,t -ue to t.e 3e3ber/ 0or t.eir pro-uct/ /ol- or /er1ice/ re,-ere- to t.e cooperati1e i,clu-i,2 ot.er i,0lo8/ o0 a//et/ re/ulti,2 0ro3 it/ ot.er operati,2 acti1itie/ a,- 8.ic. /.all be -ee3e- to .a1e bee, retur,e- to t.e3 i0 t.e /a3e i/ -i/tribute- a/ pre/cribe.erei,. *ART. +7. "r-er o0 Di/tributio,. T.e ,et /urplu/ o0 e1ery cooperati1e /.all be -i/tribute- a/ 0ollo8/4

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*?1@ A, a3ou,t 0or t.e re/er1e 0u,- 8.ic. /.all be at lea/t te, per ce,tu3 ?10H@ o0 ,et /urplu/4 #ro1i-e-, T.at, i, t.e 0ir/t 0i1e ?5@ year/ o0 operatio, a0ter re2i/tratio,, t.i/ a3ou,t /.all ,ot be le// t.a, 0i0ty per ce,tu3 ?50H@ o0 t.e ,et /urplu/4 *?a@ T.e re/er1e 0u,- /.all be u/e- 0or t.e /tability o0 t.e cooperati1e a,- to 3eet ,et lo//e/ i, it/ operatio,/. T.e 2e,eral a//e3bly 3ay -ecrea/e t.e a3ou,t allocate- to t.e re/er1e 0u,- 8.e, t.e re/er1e 0u,- alrea-y e>cee-/ t.e /.are capital. *A,y /u3 reco1ere- o, ite3/ pre1iou/ly c.ar2e- to t.e re/er1e 0u,- /.all be cre-ite- to /uc. 0u,-. *?b@ T.e re/er1e 0u,- /.all ,ot be utili<e- 0or i,1e/t3e,t, ot.er t.a, t.o/e allo8e- i, t.i/ Co-e. &uc. /u3 o0 t.e re/er1e 0u,- i, e>ce// o0 t.e /.are capital 3ay be u/e- at a,yti3e 0or a,y pro;ect t.at 8oul- e>pa,- t.e operatio,/ o0 t.e cooperati1e upo, t.e re/olutio, o0 t.e 2e,eral a//e3bly. *?c@ Cpo, t.e -i//olutio, o0 t.e cooperati1e, t.e re/er1e 0u,- /.all ,ot be -i/tribute- a3o,2 t.e 3e3ber/. T.e 2e,eral a//e3bly 3ay re/ol1e/4 *?i@ To e/tabli/. a u/u0ructuary tru/t 0u,- 0or t.e be,e0it o0 a,y 0e-eratio, or u,io, to 8.ic. t.e cooperati1e i/ a00iliate-A a,*?ii@ To -o,ate, co,tribute, or ot.er8i/e -i/po/e o0 t.e a3ou,t 0or t.e be,e0it o0 t.e co33u,ity 8.ere t.e cooperati1e operate/. I0 t.e 3e3ber/ ca,,ot -eci-e upo, t.e -i/po/al o0 t.e re/er1e 0u,-, t.e /a3e /.all 2o to t.e 0e-eratio, or u,io, to 8.ic. t.e cooperati1e i/ a00iliate-. *?2@ A, a3ou,t 0or t.e e-ucatio, a,- trai,i,2 0u,-, /.all ,ot be 3ore t.a, te, per ce,tu3 ?10H@ o0 t.e ,et /urplu/. T.e byla8/ 3ay pro1i-e t.at certai, 0ee/ or a portio, t.ereo0 be cre-ite- to /uc. 0u,-. T.e 0u,- /.all pro1i-e 0or t.e trai,i,2, -e1elop3e,t a,- /i3ilar ot.er cooperati1e acti1itie/ 2eare- to8ar-/ t.e 2ro8t. o0 t.e cooperati1e 3o1e3e,t4 *?a@ !al0 o0 t.e a3ou,t/ tra,/0erre- to t.e e-ucatio, a,- trai,i,2 0u,- a,,ually u,-er t.i/ /ub/ectio, /.all be /pe,t by t.e cooperati1e 0or e-ucatio, a,- trai,i,2 purpo/e/A 8.ile t.e ot.er .al0 3ay be re3itte- to a u,io, or 0e-eratio, c.o/e, by t.e cooperati1e or o0 8.ic. it i/ a 3e3ber. T.e /ai- u,io, or 0e-eratio, /.all /ub3it to t.e Aut.ority a,- to it/ co,tributi,2 cooperati1e/ t.e 0ollo8i,2 /c.e-ule/4 *?i@ %i/t o0 cooperati1e/ 8.ic. .a1e re3itte- t.eir re/pecti1e Cooperati1e E-ucatio, a,- Trai,i,2 Fu,-/ ?CETF@A *?ii@ 'u/i,e// co,/ulta,cy a//i/ta,ce to i,clu-e t.e ,ature a,- co/tA a,*?iii@ "t.er trai,i,2 acti1itie/ u,-erta9e, /peci0yi,2 t.erei, t.e ,ature, participa,t/ a,- co/t o0 eac. acti1ity. *?b@ Cpo, t.e -i//olutio, o0 t.e cooperati1e, t.e u,e>pe,-e- bala,ce o0 t.e e-ucatio, a,- trai,i,2 0u,appertai,i,2 to t.e cooperati1e /.all be cre-ite- to t.e cooperati1e e-ucatio, a,- trai,i,2 0u,- o0 t.e c.o/e, u,io, or 0e-eratio,. *?5@ A, a3ou,t 0or t.e co33u,ity -e1elop3e,t 0u,-, 8.ic. /.all ,ot be le// t.a, t.ree per ce,tu3 ?5H@ o0 t.e ,et /urplu/. T.e co33u,ity -e1elop3e,t 0u,- /.all be u/e- 0or pro;ect/ or acti1itie/ t.at 8ill be,e0it t.e co33u,ity 8.ere t.e cooperati1e operate/. *?6@ A, optio,al 0u,-, a la,- a,- buil-i,2, a,- a,y ot.er ,ece//ary 0u,- t.e total o0 8.ic. /.all ,ot e>cee/e1e, per ce,tu3 ?7H@. *?5@ T.e re3ai,i,2 ,et /urplu/ /.all be 3a-e a1ailable to t.e 3e3ber/ i, t.e 0or3 o0 i,tere/t o, /.are capital ,ot to e>cee- t.e ,or3al rate o0 retur, our i,1e/t3e,t/ a,- patro,a2e re0u,-/4 #ro1i-e-, T.at a,y a3ou,t re3ai,i,2 a0ter t.e allo8able i,tere/t a,- t.e patro,a2e re0u,- .a1e bee, -e-ucte- /.all be cre-ite- to t.e re/er1e 0u,-.

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*T.e /u3 allocate- 0or patro,a2e re0u,-/ /.all be 3a-e a1ailable at t.e /a3e rate to all patro,/ o0 t.e cooperati1e i, proportio, to t.eir i,-i1i-ual patro,a2e4 #ro1i-e-, T.at4 *?a@ I, t.e ca/e o0 a 3e3ber patro, 8it. pai-:up /.are capital co,tributio,, .i/ proportio,ate a3ou,t o0 patro,a2e re0u,- /.all be pai- to .i3 u,le// .e a2ree/ to cre-it t.e a3ou,t to .i/ accou,t a/ a--itio,al /.are capital co,tributio,A *?b@ I, t.e ca/e o0 a 3e3ber patro, 8it. u,pai- /.are capital co,tributio,, .i/ proportio,ate a3ou,t o0 patro,a2e re0u,- /.all be cre-ite- to .i/ accou,t u,til .i/ accou,t u,til .i/ /.are capital co,tributio, .a/ bee, 0ully pai-A *?c@ I, t.e ca/e o0 a ,o,:3e3ber patro,, .i/ proportio,ate a3ou,t o0 patro,a2e re0u,- /.all be /et a/i-e i, a 2e,eral 0u,- 0or /uc. patro,/ a,- /.all be allocate- to i,-i1i-ual ,o,:3e3ber patro,/ o,ly upo, re=ue/t a,pre/e,tatio, o0 e1i-e,ce o0 t.e a3ou,t o0 .i/ patro,a2e. T.e a3ou,t /o allocate- /.all be cre-ite- to /uc. patro, to8ar- pay3e,t o0 t.e 3i,i3u3 capital co,tributio, 0or 3e3ber/.ip. ).e, a /u3 e=ual to t.i/ a3ou,t .a/ accu3ulate- at a,y ti3e 8it.i, a perio- /peci0ie- i, t.e byla8/, /uc. patro, /.all be -ee3e- a,- beco3e a 3e3ber o0 t.e cooperati1e i0 .e /o a2ree/ or re=ue/t/ a,- co3plie/ 8it. t.e pro1i/io,/ o0 t.e byla8/ 0or a-3i//io, to 3e3ber/.ipA a,*?-@ I0 8it.i, a,y perio- o0 ti3e /peci0ie- i, t.e byla8/, a,y /ub/criber 8.o .a/ ,ot 0ully pai- .i/ /ub/cribe/.are capital or a,y ,o,:3e3ber patro, 8.o .a/ accu3ulate- t.e /u3 ,ece//ary 0or 3e3ber/.ip but 8.o -oe/ ,ot re=ue/t ,or a2ree to beco3e a 3e3ber or 0ail/ to co3ply 8it. t.e pro1i/io,/ o0 t.e byla8/ 0or a-3i//io, to 3e3ber/.ip, t.e a3ou,t /o accu3ulate- or cre-ite- to t.eir accou,t to2et.er 8it. a,y part o0 t.e 2e,eral 0u,- 0or ,o,3e3ber patro,/ /.all be cre-ite- to t.e re/er1e 0u,- or to t.e e-ucatio, a,- trai,i,2 0u,o0 t.e cooperati1e, at t.e optio, o0 t.e cooperati1e.* &ec. 11. Article/ ++, +9, 90, 91, 92, 95, 96 a,- 95 o0 C.apter KI o, t.e &pecial #ro1i/io,/ Relati,2 to A2raria, Re0or3 Cooperati1e/ o0 t.e /a3e Co-e are .ereby re,u3bere- retitle- a,- a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER KI A RARIAN REF"RM C""#ERATI$E& *ART. +7. Co1era2e. T.e pro1i/io,/ o0 t.i/ C.apter /.all pri3arily 2o1er, a2raria, re0or3 cooperati1e/4 #ro1i-e-, T.at t.e pro1i/io,/ o0 t.e ot.er c.apter/ o0 t.i/ Co-e /.all apply /uppletorily e>cept i,/o0ar a/ t.i/ C.apter ot.er8i/e pro1i-e/. *ART. ++. De0i,itio, a,- #urpo/e. A, a2raria, re0or3 cooperati1e i/ o,e or2a,i<e- by 3ar2i,al 0ar3er/, 3a;ority o0 8.ic. are a2raria, re0or3 be,e0iciarie/, 0or t.e purpo/e o0 -e1elopi,2 a, appropriate /y/te3 o0 la,- te,ure, la,- -e1elop3e,t, la,- co,/oli-atio, or la,- 3a,a2e3e,t i, area/ co1ere- by a2raria, re0or3. *A, a2raria, re0or3 cooperati1e a/ -e0i,e- /.all be or2a,i<e- 0or a,y or all o0 t.e 0ollo8i,2 purpo/e/4 *?1@ To -e1elop a, appropriate /y/te3 o0 la,- te,ure, la,- -e1elop3e,t, la,- co,/oli-atio, or la,3a,a2e3e,t i, area/ co1ere- by a2raria, re0or3A *?2@ To coor-i,ate a,- 0acilitate t.e -i//e3i,atio, o0 /cie,ti0ic 3et.o-/ o0 pro-uctio,, a,- pro1i-e a//i/ta,ce i, t.e /tora2e, tra,/port, a,- 3ar9eti,2 o0 0ar3 pro-uct/ 0or a2raria, re0or3 be,e0iciarie/ a,- t.eir i33e-iate 0a3ily, .erei,a0ter re0erre- to a/ *be,e0iciarie/*A *?5@ To pro1i-e 0i,a,cial 0acilitie/ to be,e0iciarie/ 0or pro1i-e,t or pro-ucti1e purpo/e/ at rea/o,able co/t/A *?6@ To arra,2e a,- 0acilitate t.e e>pe-itiou/ tra,/0er o0 appropriate a,- /uitable tec.,olo2y to be,e0iciarie/ a,- 3ar2i,al 0ar3er/ at t.e lo8e/t po//ible co/tA *?5@ To pro1i-e /ocial /ecurity be,e0it/, .ealt., 3e-ical a,- /ocial i,/ura,ce be,e0it/ a,- ot.er /ocial a,eco,o3ic be,e0it/ t.at pro3ote t.e 2e,eral 8el0are o0 t.e a2raria, re0or3 be,e0iciarie/ a,- 3ar2i,al 0ar3er/A

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*?7@ To pro1i-e ,o,:0or3al e-ucatio,, 1ocatio,alGtec.,ical trai,i,2, a,- li1eli.oo- pro2ra3/ to be,e0iciarie/ a,- 3ar2i,al 0ar3er/A *?7@ To act a/ co,-uit/ 0or e>ter,al a//i/ta,ce a,- /er1ice/ to t.e be,e0iciarie/ a,- 3ar2i,al 0ar3er/A *?+@ To u,-erta9e a co3pre.e,/i1e a,- i,te2rate- -e1elop3e,t pro2ra3 i, a2raria, re0or3 a,- re/ettle3e,t area/ 8it. /pecial co,cer, 0or t.e -e1elop3e,t o0 a2ro:ba/e-, 3ari,e:ba/e-, a,- cotta2e:ba/e- i,-u/trie/A *?9@ To repre/e,t t.e be,e0iciarie/ o, a,y or all 3atter/ t.at a00ect t.eir i,tere/tA a,*?10@ To u,-erta9e /uc. ot.er eco,o3ic or /ocial acti1itie/ a/ 3ay be ,ece//ary or i,ci-e,tal i, t.e pur/uit o0 t.e 0ore2oi,2 purpo/e/. *ART. +9. Cooperati1e E/tate. %a,-.ol-i,2/ li9e pla,tatio,/, e/tate/ or .acie,-a/ ac=uire- by t.e &tate 0or t.e be,e0it o0 t.e 8or9er/ i, accor-a,ce 8it. t.e Co3pre.e,/i1e A2raria, Re0or3 #ro2ra3 8.ic. /.all be collecti1ely o8,e- by t.e 8or9er:be,e0iciarie/ u,-er a cooperati1e /et:up. *ART. 90. I,0ra/tructure. I, a2raria, re0or3 a,- re/ettle3e,t area/, t.e o1er,3e,t /.all 2ra,t to a2raria, re0or3 cooperati1e/ pre0ere,tial treat3e,t i, t.e co,/tructio,, 3ai,te,a,ce a,- 3a,a2e3e,t o0 roa-/, bri-2e/, ca,al/, 8.ar1e/, port/, re/er1oir/, irri2atio, /y/te3/, 8ater8or9/ /y/te3/, a,- ot.er i,0ra/tructure/ 8it. 2o1er,3e,t 0u,-i,2. For t.i/ purpo/e, t.e o1er,3e,t /.all pro1i-e tec.,ical a//i/ta,ce, 0acilitie/ a,e=uip3e,t to /uc. a2raria, re0or3 cooperati1e/. *ART. 91. %ea/e o0 #ublic %a,-/. T.e o1er,3e,t 3ay lea/e public la,-/ to a,y a2raria, re0or3 cooperati1e 0or a perio- ,ot e>cee-i,2 t8e,ty:0i1e ?25H@ year/, /ub;ect to re,e8al 0or a,ot.er t8e,ty:0i1e ?25@ year/ o,ly4 #ro1i-e-, T.at t.e applicatio, 0or re,e8al /.all be 3a-e o,e ?1@ year be0ore t.e e>piratio, o0 t.e lea/e4 #ro1i-e-, 0urt.er, T.at /uc. lea/e /.all be 0or t.e e>clu/i1e u/e a,- be,e0it o0 t.e be,e0iciarie/ a,- 3ar2i,al 0ar3er/ /ub;ect to t.e pro1i/io,/ o0 t.e Co3pre.e,/i1e A2raria, Re0or3 #ro2ra3. *ART. 92. #re0ere,tial Ri2.t. I, a2raria, re0or3 area/, a, a2raria, re0or3 cooperati1e /.all .a1e t.e pre0ere,tial ri2.t i, t.e 2ra,t o0 0ra,c.i/e a,- certi0icate o0 public co,1e,ie,ce a,- ,ece//ity 0or t.e operatio, o0 public utilitie/ a,- /er1ice/4 #ro1i-e-, T.at it 3eet/ t.e re=uire3e,t/ a,- co,-itio,/ i3po/e- by t.e appropriate 2o1er,3e,t a2e,cy 2ra,ti,2 t.e 0ra,c.i/e or certi0icate o0 public co,1e,ie,ce a,- ,ece//ity. I0 t.ere i/ a, electric /er1ice pro1i-er i, t.e area, it /.all upo, t.e re=ue/t o0 a, a2raria, re0or3 cooperati1e, i33e-iately pro1i-e electric /er1ice/ to t.e a2raria, re0or3 area/. I0 t.e electric /er1ice pro1i-er 0ail/ to pro1i-e t.e /er1ice/ re=ue/te- 8it.i, a perio- o0 o,e ?1@ year, t.e a2raria, re0or3 cooperati1e co,cer,e- 3ay u,-erta9e to pro1i-e t.e electric /er1ice/ i, t.e area t.rou2. it/ o8, re/ource/. All i,1e/t3e,t/ 3a-e by t.e /ai- a2raria, re0or3 cooperati1e 0or t.e electri0icatio, o0 t.e a2raria, re0or3 re/ettle3e,t area/ /.all be t.e /ub;ect o0 /ale to t.e electric /er1ice pro1i-er o,ce it ta9e/ o, t.e /er1ice. *ART. 95. #ri1ile2e/. &ub;ect to /uc. rea/o,able ter3/ a,- co,-itio,/ a/ t.e Depart3e,t o0 A2raria, Re0or3 ?DAR@ a,- t.e Aut.ority 3ay i3po/e, a2raria, re0or3 cooperati1e/ 3ay be 2i1e, t.e e>clu/i1e ri2.t to -o a,y or all o0 t.e 0ollo8i,2 eco,o3ic acti1itie/ i, a2raria, re0or3 a,- re/ettle3e,t area/A *?1@ &upply a,- -i/tributio, o0 co,/u3er, a2ricultural, a=ua:cultural, a,- i,-u/trial 2oo-/, pro-uctio, i,put/, a,- ra8 3aterial/ a,- /upplie/, 3ac.i,ery, e=uip3e,t, 0acilitie/ a,- ot.er /er1ice/ a,- re=uire3e,t/ o0 t.e be,e0iciarie/ a,- 3ar2i,al 0ar3er/ at rea/o,able price/A *?2@ Mar9eti,2 o0 t.e pro-uct/ a,- /er1ice/ o0 t.e be,e0iciarie/ i, local a,- 0orei2, 3ar9et/A *?5@ #roce//i,2 o0 t.e 3e3ber/B pro-uct/ i,to 0i,i/.e- co,/u3er or i,-u/trial 2oo-/ 0or -o3e/tic co,/u3ptio, or 0or e>portA *?6@ #ro1i/io, o0 e//e,tial public /er1ice/ at co/t /uc. a/ po8er, irri2atio,, potable 8ater, pa//e,2er a,-Gor car2o tra,/portatio, by la,- or /ea, co33u,icatio, /er1ice/, a,- public .ealt. a,- 3e-ical care /er1ice/A Page1

*?5@ Ma,a2e3e,t, co,/er1atio,, a,- co33ercial -e1elop3e,t o0 3ari,e, 0ore/try, 3i,eral, 8ater, a,- ot.er ,atural re/ource/ /ub;ect to co3plia,ce 8it. t.e la8/ a,- re2ulatio,/ o, e,1iro,3e,tal a,- ecolo2ical co,trol/A a,*?7@ #ro1i/io, o0 0i,a,cial, tec.,olo2ical, a,- ot.er /er1ice/ a,- 0acilitie/ re=uire- by t.e be,e0iciarie/ i, t.eir -aily li1e/ a,- li1eli.oo-. *T.e o1er,3e,t /.all pro1i-e t.e ,ece//ary 0i,a,cial a,- tec.,ical a//i/ta,ce to a2raria, re0or3 cooperati1e/ to e,able t.e3 to -i/c.ar2e e00ecti1ely t.eir purpo/e/ u,-er t.i/ article. T.e DAR, t.e Aut.ority a,- t.e '&# /.all -ra8 up a ;oi,t pro2ra3 0or t.e or2a,i<atio, a,- 0i,a,ci,2 o0 t.e a2raria, re0or3 cooperati1e/ /ub;ect o0 t.i/ C.apter. T.e ;oi,t pro2ra3 /.all be 2eare- to8ar-/ t.e be,e0iciarie/ 2ra-ual a//u3ptio, o0 0ull o8,er/.ip a,- 3a,a2e3e,t co,trol o0 t.e a2raria, re0or3 cooperati1e/. *ART. 96. "r2a,i<atio, a,- Re2i/tratio,. A2raria, re0or3 cooperati1e/ 3ay be or2a,i<e- a,- re2i/tere- u,-er t.i/ Co-e o,ly upo, prior 8ritte, 1eri0icatio, by t.e DAR to t.e e00ect t.at t.e /a3e i/ ,ee-e- a,- -e/ire- by t.e be,e0iciarie/A re/ult/ o0 a /tu-y t.at .a/ bee, co,-ucte- 0airly i,-icate t.e eco,o3ic 0ea/ibility o0 or2a,i<i,2 t.e /a3e a,- t.at it 8ill be eco,o3ically 1iable i, it/ operatio,/A a,- t.at t.e /a3e 3ay ,o8 be or2a,i<e- a,- re2i/tere- i, accor-a,ce 8it. re=uire3e,t/ o0 t.i/ Co-e. *T.e Aut.ority, i, co,/ultatio, 8it. t.e co,cer,e- 2o1er,3e,t a2e,cie/ a,- cooperati1e /ector, /.all i//ue appropriate rule/ a,- re2ulatio,/ pertai,i,2 to t.e pro1i/io,/ o0 t.i/ C.apter.* &ec. 12. Article/ 97, 97 a,- 9+ o0 C.apter KII o, t.e &pecial #ro1i/io,/ o, #ublic &er1ice/ Cooperati1e/ o0 t.e /a3e Co-e are .ereby tra,/0erre- to a,ot.er c.apter. C.apter KII a/ a3e,-e- /.all ,o8 rea-, a/ 0ollo8/4 C!A#TER KII C""#ERATI$E 'AN(& *ART. 95. o1er,i,2 %a8. T.e pro1i/io,/ o0 t.i/ C.apter /.all pri3arily 2o1er, cooperati1e ba,9/ re2i/tereu,-er t.i/ Co-e a,- t.e ot.er pro1i/io,/ o0 t.i/ Co-e /.all apply to t.e3 o,ly i,/o0ar a/ t.ey are ,ot i,co,/i/te,t 8it. t.e pro1i/io,/ co,tai,e- i, t.i/ C.apter. *ART. 97. &uper1i/io,. T.e cooperati1e ba,9/ re2i/tere- u,-er t.i/ Co-e /.all be u,-er t.e /uper1i/io, o0 t.e '&#. T.e '&#, upo, co,/ultatio, 8it. t.e Aut.ority a,- t.e co,cer,e- cooperati1e /ector, /.all 0or3ulate 2ui-eli,e/ re2ar-i,2 t.e operatio,/ a,- t.e 2o1er,a,ce o0 cooperati1e ba,9/. T.e/e 2ui-eli,e/ /.all 2i1e -ue reco2,itio, to t.e u,i=ue ,ature a,- c.aracter o0 cooperati1e ba,9/. To t.i/ e,-, cooperati1e ba,9/ /.all pro1i-e 0i,a,cial a,- ba,9i,2 /er1ice/ to it/ 3e3ber/. *ART. 97. "r2a,i<atio,, Me3ber/.ip a,- E/tabli/.3e,t o0 a Cooperati1e 'a,9. ?1@ Cooperati1e or2a,i<atio,/ -uly e/tabli/.e- a,- re2i/tere- u,-er t.i/ Co-e 3ay or2a,i<e a cooperati1e ba,9, 8.ic. /.all li9e8i/e be co,/i-ere- a cooperati1e re2i/trable u,-er pro1i/io,/ o0 t.i/ Co-e /ub;ect to t.e re=uire3e,t/ a,- re=ui/ite aut.ori<atio, 0ro3 t.e '&#. ",ly o,e cooperati1e ba,9 3ay be e/tabli/.e- i, eac. pro1i,ce4 #ro1i-e-, T.at a, a--itio,al cooperati1e ba,9 3ay be e/tabli/.e- i, t.e /a3e pro1i,ce to cater to t.e ,ee-/ i, t.e /a3e pro1i,ce to cater to t.e ,ee-/ o0 t.e locality -epe,-i,2 o, t.e eco,o3ic co,-itio,/ o0 t.e pro1i,ce a/ 3ay be -eter3i,e- by t.e '&#4 #ro1i-e-, 0urt.er, T.at t.e a--itio,al cooperati1e ba,9 /.all be locate- i, t.e City or 3u,icipality ot.er t.at t.e city or 3u,icipality 8.ere t.e 0ir/t cooperati1e ba,9 i/ locate-. *?2@ Me3ber/.ip i, a cooperati1e ba,9 /.all eit.er be re2ular or a//ociate. Re2ular 3e3ber/.ip /.all be li3ite- to cooperati1e or2a,i<atio,/ 8.ic. are .ol-er/ o0 co33o, /.are/ o0 t.e ba,9. A//ociate 3e3ber/ are t.o/e /ub/cribi,2 a,- .ol-i,2 pre0erre- /.are/ o0 t.e ba,9, 8.ic. 3ay i,clu-e but are ,ot li3ite- to t.e 0ollo8i,24 *?a@ I,-i1i-ual 3e3ber/ o0 t.e ba,9B/ 3e3ber:pri3ary cooperati1e/A a,*?b@ &a3a.a,2 Nayo, a,- Mu,icipal (atipu,a, ,2 32a &a3a.a,2 Nayo, ?M(&N@ 8.ic. .el- co33o, /.are/ o0 cooperati1e ba,9/ prior to t.e e00ecti1ity o0 t.i/ Act /.all apply 0or co,1er/io, to 0ull:ple-2ecooperati1e/ i, or-er to 3ai,tai, t.eir /tatu/ a/ re2ular 3e3ber/ o0 cooperati1e ba,9/4 #ro1i-e-, T.at t.ey /.all ,oti0y t.e cooperati1e ba,9 co,cer,e- t.eir i,te,tio, to co,1ert 8it.i, a perio- o0 ,i,ety ?90@ -ay/ 0ro3

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t.e e00ecti1ity o0 t.i/ Act. &a3a.a,2 Nayo, a,- M(&N are .ereby 2i1e, a perio- o0 o,e ?1@ year 0ro3 t.e e00ecti1ity o0 t.i/ Act to co3plete t.eir co,1er/io, a/ cooperati1e/. Cooperati1e ba,9 /.all e>ert rea/o,able e00ort/ to i,0or3 t.eir 3e3ber &a3a.a,2 Nayo, a,- M(&N to 0i,ally co,1ert or to 2i1e t.e ,otice o0 co,1er/io, 8it.i, t.e pre/cribe- perio-. Cpo, t.e 0ailure o0 t.e &a3a.a,2 Nayo, a,- M(&N to 0i,ally co,1ert to a 0ull:ple-2e- cooperati1e 8it.i, t.e 3a>i3u3 perio- o0 o,e ?1@ year, t.e cooperati1e ba,9 co,cer,e- 3ay co,1ert t.e co33o, /.are/ .el- by /uc. a//ociatio,/ to pre0erre- /.are/. *?5@ T.e article/ o0 cooperati1e a,- byla8/ o0 a cooperati1e ba,9, or a,y a3e,-3e,t t.ereto, /.all be re2i/tere- 8it. t.e Aut.ority o,ly 8.e, acco3pa,ie- by a certi0icate o0 aut.ority i//ue- by t.e '&#, u,-er it/ o00icial /eal. *ART. 9+. A-3i,i/tratio, o0 Cooperati1e 'a,9/. To 3ai,tai, t.e =uality o0 ba,9 3a,a2e3e,t a,- accorappropriate protectio, to -epo/itor/ a,- t.e public i, 2e,eral, t.e '&# /.all pre/cribe- t.e 0it a,- proper =uali0icatio,/ o0 ba,9 -irector/ a,- o00icer/ 0or t.e purpo/e/ o0 t.i/ article, 2i1i,2 -ue reco2,itio, to t.e u,i=ue ,ature a,- c.aracter o0 cooperati1e ba,9/. *Not8it./ta,-i,2 t.e pro1i/io,/ o0 t.i/ Co-e, t.e ,u3ber, co3putatio, a,- ter3 o0 t.e boar- o0 -irector/ /.all be -e0i,e- i, t.e article/ o0 cooperatio, a,- byla8/ o0 t.e cooperati1e ba,9. *ART. 99. Iuoru3 a,- $oti,2 Ri2.t/. T.e =uoru3 re=uire3e,t 0or 2e,eral a//e3bly 3eeti,2/, 8.et.er /pecial or re2ular, /.all be o,e .al0 plu/ o,e o0 t.e ,u3ber o0 1oti,2 /.are/ o0 all t.e 3e3ber/ i, 2oo/ta,-i,2. I, t.e 3eeti,2/ o0 t.e boar- o0 -irector/, 8.et.er /pecial or re2ular, t.e =uoru3 re=uire3e,t /.all be o,e:.al0 plu/ o,e o0 all t.e 3e3ber/ o0 t.e boar- o0 -irector/. Eac. -irector /.all o,ly .a1e o,e 1ote. *Not8it./ta,-i,2 t.e pro1i/io,/ o0 t.i/ Co-e to t.e co,trary, t.e =uoru3 re=uire3e,t 0or a3e,-3e,t/ o0 article/ o0 cooperatio, a,- byla8/ /.all be t.ree:0ourt./ ?5G6@ 1ote o0 all t.e 3e3ber/ 8it. 1oti,2 ri2.t/, pre/e,t a,- co,/tituti,2 a =uoru3. All ot.er 1oti,2 re=uire3e,t/ /.all be a/ pre/cribe- by t.e '&#. *T.e 1oti,2 ri2.t/ o0 t.e 3e3ber/ /.all be proportio,ate to t.e ,u3ber o0 t.eir pai-:up /.are/. *ART. 100. #o8er/, Fu,ctio,/ a,- Allie- C,-erta9i,2/ o0 Cooperati1e 'a,9/. A cooperati1e ba,9 /.all pri3arily pro1i-e 0i,a,cial, ba,9i,2 a,- cre-it /er1ice/ to cooperati1e or2a,i<atio,/ a,- t.eir 3e3ber/. !o8e1er, t.e '&# 3ay pre/cribe appropriate 2ui-eli,e/, ceili,2/ a,- co,-itio,/ o, borro8i,2 o0 a cooperati1e or2a,i<atio, 0ro3 a cooperati1e ba,9. *T.e po8er/ a,- 0u,ctio,/ o0 a cooperati1e ba,9 /.all be /ub;ect to /uc. rule/ a,- re2ulatio,/ a/ 3ay be pro3ul2ate- by t.e '&#. *I, a--itio, to t.e po8er/ 2ra,te- by t.i/ Co-e a,- ot.er e>i/ti,2 la8/, a,y cooperati1e ba,9 3ay per0or3 a,y or all o0 t.e ba,9i,2 /er1ice/ o00ere- by ot.er type/ o0 ba,9/ /ub;ect to t.e prior appro1al o0 t.e '&#. *ART. 101. Capital Re=uire3e,t/ o0 Cooperati1e 'a,9/. ?1@ A cooperati1e ba,9 /.all .a1e a 3i,i3u3 pai-:up capital i, /uc. a3ou,t a/ 3ay be re=uire- by t.e '&#. *T.e '&# 3ay pre/cribe rule/ a,- re2ulatio,/ o, t.e type/ o0 /.are/ a cooperati1e ba,9 3ay i//ue, i,clu-i,2 t.e ter3/ t.ereo0 a,- ri2.t/ appurte,a,t t.ereto to -eter3i,e co3plia,ce 8it. la8/ a,- re2ulatio,/ 2o1er,i,2 capital a,- e=uity /tructure o0 ba,9/4 #ro1i-e-, T.at cooperati1e ba,9/ /.all i//ue par 1alue /.are/ o,ly. *?2@ T.e 'arrio &a1i,2/ Fu,- ?'&F@ a,- 'arrio uara,tee Fu,- ?' F@ collecte-G-e-ucte- by 1ariou/ ba,9/ t.rou2.out t.e cou,try 0ro3 t.e loa, procee-/ o0 0ar3er:borro8er/ 8.o 8ere 3e3ber/ o0 cooperati1e/ a,&a3a.a,2 Nayo, i, co3plia,ce 8it. #re/i-e,tial Decree No. 175 a,- acco3pa,yi,2 letter/ o0 i,/tructio,, 8.ic. are /till 0loati,2 a,- out/ta,-i,2 eit.er a/ acti1e or -or3a,t -epo/it accou,t/ i, t.e boo9/ o0 t.o/e ba,9/, /.all be -epo/ite- to t.e cooperati1e ba,9 locate- i, t.e pro1i,ce 8.ere t.e -epo/itory ba,9/ o0 '&F a,- ' F are locate-, or i0 t.ere i/ ,o cooperati1e ba,9 i, t.e pro1i,ce. T.e '&#, i, coor-i,atio, 8it. t.e Aut.ority, /.all co3e up 8it. t.e i3ple3e,ti,2 2ui-eli,e/ o, .o8 to cre-it t.e o8,er/ o0 t.e 0u,-/. *T.o/e 0u,-/ 8.o/e o8,er/ coul- ,ot be locate- or i-e,ti0ie- /.all be /ub;ect to e/c.eat. Page1

*ART. 102. #ri1ile2e/ a,- I,ce,ti1e/ o0 Cooperati1e 'a,9/. T.e cooperati1e ba,9/ re2i/tere- u,-er t.i/ Co-e /.all be 2i1e, t.e /a3e pri1ile2e/ a,- i,ce,ti1e/ 2ra,te- to t.e rural ba,9/, pri1ate -e1elop3e,t ba,9, co33ercial ba,9/, a,- all ot.er ba,9/ to re-i/cou,t ,ote/ 8it. t.e '&#, t.e %a,- 'a,9 o0 t.e #.ilippi,e/, a,ot.er 2o1er,3e,t ba,9/ 8it.out a00ecti,2 i, a,y 8ay t.e pro1i/io,/ o0 t.i/ Co-e. *?1@ &ub;ect to t.e appro1al o0 t.e '&#, a cooperati1e ba,9 /.all publi/. a /tate3e,t o0 it/ 0i,a,cial /tate3e,t o0 it/ 0i,a,cial co,-itio,, i,clu-i,2 t.o/e o0 it/ /ub/i-iarie/ a,- a00iliate/ i, /uc. ter3/ u,-er/ta,-able to t.e lay3a, a,- i, /uc. 0re=ue,cy a/ 3ay be pre/cribe- by t.e '&#, i, E,2li/. or Filipi,o, at lea/t o,ce e1ery =uarter i, a ,e8/paper o0 local circulatio, i, t.e city or pro1i,ce 8.ere t.e pri,cipal o00ice i/ locate- or, i0 ,o ,e8/paper i/ publi/.e- i, t.e /a3e pro1i,ce/, t.e, i, a ,e8/paper publi/.e- i, t.e ,eare/t city or pro1i,ce or i, a ,e8/paper o0 2e,eral circulatio,. T.e '&#, .o8e1er, 3ay allo8 t.e po/ti,2 o0 t.e 0i,a,cial /tate3e,t/ o0 t.e cooperati1e ba,9 i, co,/picuou/ place/ it 3ay -eter3i,e i, lieu o0 t.e publicatio, re=uire- i, t.e prece-i,2 /e,te,ce 8.e, 8arra,te- by t.e circu3/ta,ce/. *!o8e1er, i, ca/e/ o0 0oreclo/ure o0 3ort2a2e/ co1eri,2 loa,/ 2ra,te- by a cooperati1e ba,9, a,- t.e e>ecutio, o0 ;u-23e,t/ t.ereo, i,1ol1i,2 real propertie/ a,- le1ie- upo, by a /.eri00, it /.all be e>e3pt 0ro3 publicatio, re=uire3e,t 8.ere t.e total a3ou,t o0 t.e loa,, e>clu-i,2 i,tere/t a,- ot.er c.ar2e/ -ue a,u,pai-, -oe/ ,ot e>cee- T8o .u,-re- 0i0ty t.ou/a,- ?#250,000.00@ or /uc. a3ou,t a/ t.e '&# 3ay pre/cribe, a/ 3ay be 8arra,te- by t.e pre1aili,2 eco,o3ic co,-itio,/ a,- by t.e ,ature a,- c.aracter o0 t.e cooperati1e ba,9/. It /.all be /u00icie,t publicatio, i, /uc. ca/e/ i0 t.e ,otice o0 0oreclo/ure a,- e>ecutio, o0 ;u-23e,t are po/te- i, co,/picuou/ area/ i, t.e cooperati1e ba,9B/ pre3i/e/, t.e 3u,icipal .all, t.e 3u,icipal public 3ar9et, t.e bara,2ay .all, or t.e bara,2ay public 3ar9et, i0 t.ere be a,y 8.ere t.e property 3ort2a2e- i/ /ituate-, 8it.i, a perio- o0 /i>ty ?70@ -ay/ i33e-iately prece-i,2 t.e public auctio, or t.e e>ecutio, o0 ;u-23e,t. #roo0 o0 publicatio, a/ re=uire- .erei, /.all be acco3pli/.e- by a, a00i-a1it o0 t.e /.eri00 or o00icer co,-ucti,2 t.e 0oreclo/ure /ale or e>ecutio, o0 ;u-23e,t, a,- /.all be attac.e- to t.e recoro0 t.e ca/e. *?2@ A cooperati1e ba,9 /.all be allo8e- to 0oreclo/ure la,-/ 3ort2a2e- to it/ /ub;ect to t.e pro1i/io,/ o0 Republic Act No. 7757, ot.er8i/e 9,o8, a/ Co3pre.e,/i1e A2raria, Re0or3 %a8 o0 19++. *ART. 105. A//i/ta,ce to Cooperati1e 'a,9/. I, accor-a,ce 8it. e>i/ti,2 policie/, 2o1er,3e,t a2e,cie/, 2o1er,3e,t:o8,e- or co,trolle- corporatio,/ a,- 0i,a,cial i,/titutio,/ /.all pro1i-e a//i/ta,ce, tec.,ical or ot.er8i/e, to cooperati1e ba,9/ to per3it t.e3 to 2ro8, -e1elop a,- per0or3 t.eir role i, cou,try/i-e -e1elop3e,t to8ar-/ a /u/tai,able ,atio,al eco,o3ic -e1elop3e,t. ).e,e1er a cooperati1e ba,9 or2a,i<eu,-er t.i/ Co-e i/ i, a /tate o0 co,ti,ui,2 i,ability or u,8illi,2,e// to 3ai,tai, a perio- o0 li=ui-ity, t.e '&# 3ay -e/i2,ate o,e o0 it/ o00icial/ or a per/o, o0 reco2,i<e- co3pete,ce, pre0erably 8it. e>perie,ce i, cooperati1e ba,9i,2 a,- 0i,a,ce, a/ co,/er1ator o0 t.e /ai- ba,9 pur/ua,t to t.e appropriate pro1i/io,/ o0 e>i/ti,2 ba,9i,2 la8/. *ART. 106. Applicability o0 'a,9i,2 %a8/ a,- Re2ulatio,/. )it. re/pect to t.e pro1i/io,/ a,- 2o1er,a,ce o0 t.e cooperati1e ba,9/, t.e pro1i/io,/ o0 t.e ba,9i,2 la8/, rule/ a,- re2ulatio,/ /.all pre1ail, ,ot8it./ta,-i,2 &ec. 71 o0 Republic Act No. +791, ot.er8i/e 9,o8, a/ t.e e,eral 'a,9i,2 Act o0 2000. *T.e '&# a,- t.e Aut.ority, i, co,/ultatio, 8it. t.e co,cer,e- cooperati1e /ector, /.all i//ue appropriate rule/ a,- re2ulatio,/ pertai,i,2 to t.e pro1i/io,/ o0 t.i/ C.apter.* &ec. 15. Article/ 99, 100, 101, 102, 105, 106, 105, 107, 107, 10+ a,- 109 o0 C.apter KIII o, &pecial #ro1i/io,/ Relati,2 to Cooperati1e 'a,9/ o0 t.e /a3e Co-e are .ereby tra,/0erre- to a,ot.er c.apter. C.apter KIII a/ a3e,-e- /.all ,o8 rea-, a/ 0ollo8/ C!A#TER KIII IN&CRANCE C""#ERATI$E *ART. 105. Cooperati1e I,/ura,ce &ocietie/. E>i/ti,2 cooperati1e/ 3ay or2a,i<e t.e3/el1e/ i,to a cooperati1e i,/ura,ce e,tity 0or t.e purpo/e o0 e,2a2i,2 i, t.e bu/i,e// o0 i,/uri,2 li0e a,- property o0 cooperati1e/ a,- t.eir 3e3ber/.

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*ART. 107. Type/ o0 I,/ura,ce #ro1i-e-. C,-er t.e cooperati1e i,/ura,ce pro2ra3 e/tabli/.e- a,- 0or3e- by t.e 1irtue o0 t.e pro1i/io,/ o0 t.i/ Co-e, t.e cooperati1e i,/ura,ce /ocietie/ /.all pro1i-e it/ co,/tituti,2 3e3ber/ -i00ere,t type/ o0 i,/ura,ce co1era2e co,/i/ti,2 o0, but ,ot li3ite- to, li0e i,/ura,ce 8it. /pecial 2roup co1era2e, loa, protectio,, retire3e,t pla,/, e,-o83e,t, 3otor 1e.icle co1era2e, bo,-i,2, crop a,li1e/toc9 protectio, a,- e=uip3e,t i,/ura,ce. *ART. 107. Applicability o0 I,/ura,ce %a8/. T.e pro1i/io,/ o0 t.e I,/ura,ce Co-e a,- all ot.er la8/ a,re2ulatio,/ relati1e to t.e or2a,i<atio, a,- operatio, o0 a, i,/ura,ce co3pa,y /.all apply to cooperati1e i,/ura,ce e,titie/ or2a,i<e- u,-er t.i/ Co-e. T.e re=uire3e,t/ o, capitali<atio,, i,1e/t3e,t/ a,- re/er1e/ o0 i,/ura,ce 0ir3/ 3ay be liberally 3o-i0ie- upo, co,/ultatio, 8it. t.e Aut.ority a,- t.e cooperati1e /ector, but i, ,o ca/e 3ay be re=uire3e,t to be re-uce- to le// t.a, .al0 o0 t.o/e pro1i-e- 0or u,-er t.e I,/ura,ce Co-e a,- ot.er relate- la8/. *ART. 10+. I3ple3e,ti,2 Rule/. T.e I,/ura,ce Co33i//io, a,- t.e Aut.ority, i, co,/ultatio, 8it. t.e co,cer,e- cooperati1e /ector, /.all i//ue t.e appropriate rule/ a,- re2ulatio,/ i3ple3e,ti,2 t.e pro1i/io,/ o0 t.i/ C.apter.* &ec. 16. Article/ 110, 111, 112, 115 a,- 116 o0 C.apter KI$ o, &pecial #ro1i/io,/ relati,2 to Cre-it Cooperati1e o0 t.i/ Co-e are .ereby tra,/0erre- to a,ot.er c.apter. C.apter KI$ a/ a3e,-e- /.all ,o8 rea-, a/ 0ollo8/4 C!A#TER KI$ #C'%IC &ER$ICE C""#ERATI$E& *ART. 109. De0i,itio, a,- Co1era2e. A public /er1ice cooperati1e, 8it.i, t.e 3ea,i,2 o0 t.i/ Co-e, i/ o,e or2a,i<e- to re,-er public /er1ice/ a/ aut.ori<e- u,-er a 0ra,c.i/e or certi0icate o0 public co,1e,ie,ce a,,ece//ity -uly i//ue- by t.e appropriate 2o1er,3e,t a2e,cy. &uc. /er1ice/ 3ay i,clu-e t.e 0ollo8i,24 *?1@ #o8er 2e,eratio,, tra,/3i//io,, a,-Gor -i/tributio,A *?2@ Ice pla,t/ a,- col- /tora2e /er1ice/A *?5@ Co33u,icatio, /er1ice/ i,clu-i,2 telep.o,e, tele2rap., a,- co33u,icatio,/4 *?6@ %a,- a,- /ea tra,/portatio, cooperati1e/ 0or pa//e,2er a,-Gor car2o. Tra,/port cooperati1e/ or2a,i<eu,-er t.e pro1i/io,/ o0 E>ecuti1e "r-er No. +9+, &erie/ o0 19+5, /.all be 2o1er,e- by t.i/ C.apter. *?5@ #ublic 3ar9et/, /lau2.ter.ou/e/ a,- ot.er /i3ilar /er1ice/A a,*?7@ &uc. ot.er type/ o0 public /er1ice/ a/ 3ay be e,2a2e- i, by a,y cooperati1e. &uc. cooperati1e /.all be pri3arily 2o1er,e- by t.i/ C.apter a,- t.e 2e,eral pro1i/io,/ o0 t.i/ Co-e i,/o0ar a/ t.ey 3ay be applicable u,le// t.ey are i,co,/i/te,t .ere8it.. *ART. 110. Re2i/tratio, Re=uire3e,t/. C,le// ot.er8i/e pro1i-e- i, t.i/ Co-e, ,o public /er1ice cooperati1e /.all be re2i/tere- u,le// it /ati/0ie/ t.e 0ollo8i,2 re=uire3e,t/. *?1@ It/ article/ o0 cooperatio, a,- byla8/ pro1i-e 0or t.e 3e3ber/.ip o0 t.e u/er/ a,-Gor pro-ucer/ o0 t.e /er1ice o0 /uc. cooperati1e/A a,*?2@ &uc. ot.er re=uire3e,t/ a/ 3ay be i3po/e- by t.e ot.er perti,e,t 2o1er,3e,t a2e,cie/ co,cer,e-. I, ca/e t.ere are t8o ?2@ or 3ore applica,t/ 0or t.e /a3e public /er1ice 0ra,c.i/e or certi0icate o0 public co,1e,ie,ce a,- ,ece//ity, all t.i,2/ bei,2 e=ual, pre0ere,ce /.all be 2i1e, to a public /er1ice cooperati1e. *ART. 111. Re2ulatio, o0 #ublic &er1ice Cooperati1e/. ?1@ T.e i,ter,al a00air/ o0 public /er1ice cooperati1e/ /uc. a/ t.e ri2.t/ a,- pri1ile2e/ o0 3e3ber/, t.e rule/ a,- proce-ure/ 0or 3eeti,2/ o0 t.e 2e,eral a//e3bly, boar- o0 -irector/ a,- co33ittee/A 0or t.e electio, a,- =uali0icatio,/ o0 o00icer/, -irector/, a,- co33ittee

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3e3ber/A allocatio, a,- -i/tributio, o0 /urplu/e/A a,- all ot.er 3atter/ relati,2 to t.eir i,ter,al a00air/ /.all be 2o1er,e- by t.i/ Co-e. *?2@ All 3atter/ relati,2 to t.e 0ra,c.i/e or certi0icate o0 public co,1e,ie,ce a,- ,ece//ity o0 public /er1ice cooperati1e/ /uc. a/ capitali<atio, a,- i,1e/t3e,t re=uire3e,t/, e=uip3e,t a,- 0acilitie/, 0re=ue,cie/, rate: 0i>i,2 a,- /uc. ot.er 3atter/ a00ecti,2 t.eir public /er1ice operatio,/ /.all be 2o1er,e- by t.e proper 2o1er,3e,t a2e,cy co,cer,e-. *?5@ T.e Aut.ority a,- t.e proper 2o1er,3e,t a2e,cy co,cer,e- /.all ;oi,tly i//ue t.e ,ece//ary rule/ a,re2ulatio,/ to i3ple3e,t t.i/ C.apter. *?6@ T.e Aut.ority /.all e/tabli/. a co33ittee 0or t.e 3o,itori,2 o0 tra,/portatio, /er1ice cooperati1e/ co3po/e- o0 repre/e,tati1e/ 0ro3 t.e Aut.ority, t.e %a,- Tra,/portatio, Fra,c.i/i,2 a,- Re2ulatory 'oar?%TFR'@, t.e %a,- Tra,/portatio, "00ice ?%T"@, "00ice o0 Tra,/port Cooperati1e/ ?"TC@, ot.er co,cer,e2o1er,3e,t a2e,cie/, a/ 3ay be ,ece//ary, a,- t.e Natio,al Fe-eratio, o0 Tra,/portatio, Cooperati1e/. A local 3o,itori,2 co33ittee /.all li9e8i/e be e/tabli/.e- at t.e e>te,/io, o00ice/ o0 t.e Aut.ority to 0acilitate t.e 3o,itori,2 o0 tra,/portatio, cooperati1e/. *ART. 112. E,2a2e3e,t i, Allie- 'u/i,e// by Tra,/portatio, &er1ice Cooperati1e/. &ub;ect to perti,e,t ,atio,al la8/ a,- local or-i,a,ce/, pri3ary tra,/portatio, /er1ice cooperati1e/ i,clu-i,2 /eco,-ary a,tertiary 0e-eratio, o0 cooperati1e/ 3ay e,2a2e i, a bu/i,e// relate- to tra,/portatio, /er1ice, i,clu-i,2 but ,ot li3ite- to4 *?1@ I3portatio,, -i/tributio, a,-, 3ar9eti,2 o0 petroleu3 pro-uct/ i, accor-a,ce 8it. e>i/ti,2 la8/A *?2@ "peratio, o0 2a/oli,e /tatio,/ a,- tra,/portatio, /er1ice ce,ter/A *?5@ I3portatio,, -i/tributio, a,- 3ar9eti,2 o0 /pare part/ a,- /upplie/A a,*?6@ Mar9eti,2 o0 1e.icleG-ri1er/ i,/ura,ce policie/. *ART. 115. Re,e8al o0 Fra,c.i/e a,- $e.icle Re2i/tratio,. Re,e8al/ o0 0ra,c.i/e a,- 1e.icle re2i/tratio, /.all be 2ra,te- to tra,/portatio, /er1ice cooperati1e/4 #ro1i-e-, T.at /uc. cooperati1e pre/e,t/ a certi0icate o0 2oo- /ta,-i,2 i//ue- by t.e Aut.ority, "TC, a,- t.e local 2o1er,3e,t u,it co,cer,e- a/ proo0 t.at it .a/ co,ti,uou/ly pro1i-e- t.e re=uire- public tra,/portatio, /er1ice/. *T.e Aut.ority, i, co,/ultatio, 8it. t.e co,cer,e- 2o1er,3e,t a2e,cie/ a,- cooperati1e /ector, /.all i//ue appropriate rule/ a,- re2ulatio,/ pertai,i,2 to t.e pro1i/io,/ o0 t.i/ C.apter.* &ec. 15. Article/ 115, 117, 117 a,- 11+ o0 C.apter K$ o, &pecial #ro1i/io,/ relati,2 to Cooperati1e I,/ura,ce &ocietie/ o0 t.e /a3e Co-e are .ereby tra,/0erre- to a,ot.er c.apter. C.apter K$ a/ a3e,-e- /.all ,o8 rea-, a/ 0ollo8/4 C!A#TER K$ CREDIT C""#ERATI$E& *ART. 116. Co1era2e. T.i/ C.apter /.all apply to cre-it cooperati1e/ a,- ot.er cooperati1e/, i,clu-i,2 3ultipurpo/e cooperati1e/, t.at pro1i-e /a1i,2/ a,- cre-it to t.eir 3e3ber/ o,ly. T.e re/t o0 t.e pro1i/io,/ o0 t.i/ Co-e /.all apply to t.e3 i,/o0ar a/ t.e /a3e are ,ot i,co,/i/te,t 8it. t.e pro1i/io,/ o0 t.i/ C.apter. *ART. 115. De0i,itio, a,- "b;ecti1e/. A cre-it cooperati1e i/ a 0i,a,cial or2a,i<atio, o8,e- a,- operate- by it/ 3e3ber/ 8it. t.e 0ollo8i,2 ob;ecti1e/4 *?1@ To e,coura2e /a1i,2/ a3o,2 it/ 3e3ber/A Page1 *?2@ To create a pool o0 /uc. /a1i,2/ 0or 8.ic. loa,/ 0or pro-ucti1e or pro1i-e,t purpo/e 3ay be 2ra,te- to it/ 3e3ber/A a,-

*?5@ To pro1i-e relate- /er1ice/ to e,able it/ 3e3ber/ to 3a>i3i<e t.e be,e0it 0ro3 /uc. loa,/. *ART. 117. "r2a,i<atio, a,- Re2i/tratio,.: Cre-it cooperati1e/ /.all be or2a,i<e- a,- re2i/tere- i, accor-a,ce 8it. t.e 2e,eral pro1i/io,/ o0 t.i/ Co-e. *ART. 117. "r2a,i<atio,al %i,9a2e. Cre-it cooperati1e/ 3ay or2a,i<e c.apter/ or /ub/i-iarie/, or ;oi, lea2ue/ a,- 0e-eratio,/ 0or t.e purpo/e o0 pro1i-i,2 co33o,ly ,ee-e- e//e,tial /er1ice/ i,clu-i,2 but ,ot li3ite- to t.e 0ollo8i,24 *?1@ I,terle,-i,2 o0 /urplu/ 0u,-A*?2@ Mutual be,e0it/A*?5@ Depo/it 2uara,teeA*?6@ 'o,-i,2A*?5@ E-ucatio, a,trai,i,2A*?7@ #ro0e//io,al a,- tec.,ical a//i/ta,ceA*?7@ Re/earc. a,- -e1elop3e,tA*?+@ Repre/e,tatio,A a,*?9@ "t.er /er1ice/ ,ee-e- to i3pro1e t.eir per0or3a,ce. *E>i/ti,2 /upport or2a,i<atio,/ /uc. a/ 0e-eratio,/ o0 cre-it cooperati1e/, cre-it cooperati1e/ at t.e pro1i,cial, re2io,al a,- ,atio,al le1el/ 3ay co,ti,ue a/ /uc. u,-er t.i/ Co-e.* &ec. 17. A ,e8 Article i/ i,/erte- i, C.apter K$ o, Cre-it Cooperati1e/ a,- /.all ,o8 rea-, a/ 0ollo8/4 *ART. 11+. Co,1er/io, o0 Cre-it Cooperati1e/ to Fi,a,cial &er1ice Cooperati1e/. E>i/ti,2 cre-it a,3ultipurpo/e cooperati1e/ 8it. /a1i,2/ a,- cre-it 0acilitie/ /.all 0or3ally i,0or3 t.e Aut.ority o0 it/ i,te,tio, to co,ti,ue per0or3i,2 it/ pre/e,t 0u,ctio,/. &.oul- t.e /ai- cooperati1e/ -eci-e to e>erci/e e,.a,ce- 0u,ctio,/, it /.all ,oti0y t.e Aut.ority a,- /ati/0y t.e re=uire3e,t/ 0or co,1er/io, to 0i,a,cial /er1ice cooperati1e.* &ec. 17. A ,e8 C.apter o, Fi,a,cial &er1ice Cooperati1e/ /.all be i,/erte- i, t.i/ C.apter a,- /.all rea-, a/ 0ollo8/4 C!A#TER K$I FINANCIA% &ER$ICE C""#ERATI$E& *ART. 119. De0i,itio, a,- Fu,ctio,/ o0 Fi,a,cial &er1ice/ Cooperati1e/. A 0i,a,cial /er1ice cooperati1e i/ a 0i,a,cial or2a,i<atio, o8,e- a,- operate- by it/ 3e3ber/ a,- aut.ori<e- to pro1i-e t.e 0ollo8i,2 /er1ice, e>clu/i1ely to it/ 3e3ber/4 *?a@ T.e 0u,ctio,/ o0 cre-it cooperati1e/ a,- ot.er cooperati1e/, i,clu-i,2 3ultipurpo/e cooperati1e/, t.at pro1i-e /a1i,2/ a,- cre-it to t.eir 3e3ber/, a,-*?b@ "t.er 0i,a,cial /er1ice/ /ub;ect to re2ulatio, by t.e '&#. *T.e article/ o0 cooperatio, a,- byla8/ o0 a,y 0i,a,cial /er1ice cooperati1e, or a,y a3e,-3e,t t.ereto, /.all be re2i/tere- 8it. t.e Aut.ority o,ly i0 acco3pa,ie- by a certi0icate o0 aut.ority i//ue- by t.e '&#, u,-er it/ o00icial /eal. *T.e aut.ority 2ra,te- t.i/ pro1i/io, 3ay be re1o9e- by t.e '&# i0 a,y o0 t.e 2rou,-/ 0or recei1er/.ip 3e,tio,e- u,-er &ec. 55 a,- 57 o0 Republic Act No. +791 i/ pre/e,t or i0 t.e 0i,a,cial /er1ice cooperati1e .a/ 8ill0ully 1iolate- t.i/ Co-e o0 a,y o0 t.e relate- rule/ a,- re2ulatio,/. *T.e '&# /.all i//ue a cea/e a,- -e/i/t or-er to cooperati1e/ e>erci/i,2 t.e 0u,ctio, o0 a 0i,a,cial /er1ice cooperati1e 8it.out aut.ority 0ro3 t.e '&#. *T.e '&# 3ay c.ar2e e=uitable rate/ or 0ee/, a/ 3ay be pre/cribe- by t.e Mo,etary 'oar- 0or lice,/i,2, e>a3i,atio, a,- ot.er /er1ice/ 8.ic. it re,-er/ u,-er t.i/ Co-e. *Cpo, t.e 0a1orable certi0icatio, o0 t.e '&# a,- t.e prior appro1al o0 t.e Aut.ority, a cooperati1e, t.e 3ai, purpo/e o0 8.ic. i/ to per0or3 /a1i,2/ a,- cre-it 0u,ctio,/, 3ay co,1ert to 0i,a,cial /er1ice cooperati1e /ub;ect to t.e re=uire- =uali0icatio,/ a,- proce-ure/ pro1i-e- u,-er t.i/ Co-e a,- i, t.e i3ple3e,ti,2 rule/ a,- re2ulatio,/. Page1 *ART. 120. Me3ber/.ip a,- A00iliatio,. A 0i,a,cial /er1ice cooperati1e /.all .a1e t.e t8o ?2@ type/ o0 3e3ber/4

*?1@ Re2ular 3e3ber/, 8.o are ,atural per/o,/A a,*?2@ A//ociate 3e3ber/, 8.o are ,atural per/o,/ but 8.o -o ,ot i33e-iately =uali0y u,-er t.e re=uire3e,t/ 0or 3e3ber/.ip /et out i, t.e byla8/ o0 t.e cooperati1e. All a//ociate 3e3ber/ 8.o are ,atural per/o,/ /.all be 2i1e, t8o ?2@ year/ to beco3e re2ular 3e3ber/. Failure to co,1ert 8it.i, t.e /ai- perio- /.all 3ea, auto3atic 8it.-ra8al o0 t.eir a//ociate 3e3ber/.ip. T.ey 3ay, .o8e1er, re:apply a/ re2ular 3e3ber/ a0ter t8o ?2@ year/. *Mi,or/ 8.o are -epe,-e,t/ o0 re2ular 3e3ber/ ca, =uali0y a/ a//ociate 3e3ber/. ).e, t.ey reac. t.e a2e o0 3a;ority a,- 8it.i, t8o ?2@ year/ 0ro3 accepta,ce/ o0 t.eir a//ociate 3e3ber/.ip, t.ey .a1e t.e optio, to co,1ert i,to re2ular 3e3ber/. A/ a//ociate 3e3ber/, t.ey 3ay ope, accou,t/, -epo/it 0u,-/ a,- 8it.-ra8 0ro3 t.eir accou,t, /ub;ect to t.e byla8/ a,- rule/ o0 t.e cooperati1e, a,- t.e rule/ a,- re2ulatio,/ o0 t.e Aut.ority, ,ot8it./ta,-i,2 t.e pro1i/io,/ o0 e>i/ti,2 la8/ to t.e co,trary. *ART. 121. Re2ulatio, a,- &uper1i/io,. T.e Aut.ority /.all e>erci/e lea- re2ulatory po8er/ a,- /uper1i/io, o1er t.e operatio,/ o0 t.e 0i,a,cial /er1ice cooperati1e/, to 8it4 *?1@ I//ue rule/ a,- re2ulatio,/ 0or t.e /a0e a,- /ou,- co,-uct o0 operatio,/ o0 0i,a,cial /er1ice cooperati1e/A *?2@ E/tabli/. /ta,-ar-/ o0 operatio, 0or u,i0or3 applicatio, to all 0i,a,cial /er1ice cooperati1e/A *?5@ #re/cribe ratio/, ceili,2/, li3itatio,/, or ot.er 0or3/ o0 re2ulatio, o, t.e -i00ere,t type/ o0 accou,t/ a,practice/ o0 0i,a,cial /er1ice cooperati1e/ 8.ic. /.all, co,0or3 to i,ter,atio,ally accepte- /ta,-ar-/A *?6@ I,1e/ti2ate to -eter3i,e 8.et.er a 0i,a,cial /er1ice cooperati1e i/ co,-ucti,2 it/ bu/i,e// i, a /a0e a,/ou,- 3a,,erA *?5@ Co,-uct re2ular e>a3i,atio, o0 t.e boo9/ o0 accou,t/, recor-/ a,- ot.er -ocu3e,t/ o0 0i,a,cial /er1ice cooperati1e/A *?7@ I,=uire i,to t.e /ol1e,cy a,- li=ui-ity o0 a 0i,a,cial /er1ice cooperati1e/A *?7@ #re/cribe appropriate 0ee/ 0or /uper1i/io, a,- e>a3i,atio, o0 0i,a,cial /er1ice cooperati1e/ to a3o,2 ot.er/, 3o,itor a,- o1er/ee t.at e>i/ti,2 la8/ a,- re2ulatio,/ are co3plie- 8it.A *?+@ #a// upo, a,- re1ie8 t.e =uali0icatio,/ a,- -i/=uali0icatio,/ o0 i,-i1i-ual/ electe- or appoi,te- -irector/ or o00icer/ a,- -i/=uali0y t.o/e 0ou,- u,0itA *?9@ Di/=uali0y, /u/pe,- or re3o1e a,y -irector or o00icer 8.o co33it/ or o3it/ a, act 8.ic. re,-er .i3 u,0it 0or t.e po/itio,A *?10@ &elect, -e/i2,ate a,- -eputi<e 0e-eratio,/, t.rou2. a, appro1e- accre-itatio, criteria, t.at 8ill /uper1i/e pri3ary 0i,a,cial /er1ice cooperati1e/ a,- i//ue ba/ic 2ui-eli,e/ t.ere0orA *?11@ Re=uire t.e /ub3i//io, o0 rele1a,t report/ 0ro3 t.e -eputi<e- /uper1i/orA *?12@ #ro1i-e re3e-ial 3ea/ure/ i, t.e operatio,/ o0 0i,a,cial /er1ice cooperati1e/ t.at are i, a /tate o0 co,ti,ui,2 i,ability or u,8illi,2,e// to 3ai,tai, a perio- o0 li=ui-ity at t.e re=ue/t o0 t.e -eputi<e- /uper1i/or or 8.e, t.e -eputi<e- /uper1i/or 0ail/ to per0or3 it/ 0u,ctio,/A *?15@ Accre-it e>ter,al au-itor/ i, accor-a,ce 8it. /ta,-ar-/ 0or au-it a,- 0i,a,cial reporti,2 i, cooperatio, 8it. t.e #IC#AA a,*?16@ Appoi,t a co,/er1ator or a recei1er a/ 3ay be ,ece//ary /ub;ect to t.e rule/ a,- re2ulatio,/ to be pro3ul2ate- by t.e Aut.ority i, coor-i,atio, 8it. t.e '&#, ta9i,2 i,to co,/i-eratio, t.e 2rou,-/, po8er/ a,proce-ure/ u,-er &ec./ 29 a,- 50 o0 Republic Act No. 7755 a/ 3ay be -ee3e- appropriate to 0i,a,cial /er1ice cooperati1e/.

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*T.e Aut.ority /.all i,clu-e i, it/ rule/ a,- re2ulatio,/, appropriate /a,ctio,/ a,- pe,altie/, o, t.e 0i,a,cial /er1ice cooperati1e/, it/ 3e3ber/, o00icer/ a,- re/po,/ible per/o,/, 0or a,y actio, t.at 0ail/ to a-.ere to /ou,- a,- pru-e,t 3a,a2e3e,t practice/ or are i,co,/i/te,t 8it. t.e pro1i/io,/ o0 t.i/ Co-e, ot.er applicable la8/ o, cooperati1e/, rule/, re2ulatio,/, circular/ or or-er/ i//ue- by t.e Aut.ority, a,- re=uire t.e cooperati1e to u,-erta9e correcti1e or re3e-ial 3ea/ure/ relati1e t.ereto. *T.e '&# i/ aut.ori<e- to co,-uct ri/9:ba/e- /uper1i/io, a,- e>a3i,atio, o0 0i,a,cial /er1ice cooperati1e/ a/ it 3ay -ee3 ,ece//ary. *ART. 122. #ro3ul2atio, o0 Rule/ a,- Re2ulatio,/. T.e '&#, i, coor-i,atio, 8it. t.e Aut.ority, /.all pre/cribe t.e appropriate pru-e,tial rule/ a,- re2ulatio,/ applicable to t.e 0i,a,cial /er1ice cooperati1e/. *&ub;ect to t.e re2ulatio,/ o0 t.e '&#, t.e ba,9i,2 la8/, rule/ a,- re2ulatio,/ /.all .a1e /uppletory applicatio, to 0i,a,cial /er1ice/ cooperati1e/4 #ro1i-e-, .o8e1er, T.at t.e pro1i/io,/ o, acce// to borro8i,2 or 0i,a,cial a//i/ta,ce to be e>te,-e- by t.e '&# o0 t.e #.ilippi,e Depo/it I,/ura,ce Corporatio, ?#IDC@ /.all ,ot apply to 0i,a,cial /er1ice cooperati1e/4 #ro1i-e-, 0urt.er, T.at t.e -epo/it liabilitie/ o0 t.e 0i,a,cial /er1ice cooperati1e/ /.all ,ot be i,/ure- by t.e #DIC. *ART. 125. Fi,a,cial &er1ice Cooperati1e Fe-eratio,/. Fi,a,cial /er1ice cooperati1e/ 3ay or2a,i<e t.e3/el1e/ i,to 0i,a,cial /er1ice cooperati1e 3ay or2a,i<e t.e3/el1e/ i,to 0i,a,cial /er1ice cooperati1e 0e-eratio,/, a,- re2i/ter t.eir 0e-eratio, 8it. t.e Aut.ority. T.e/e 0i,a,cial /er1ice cooperati1e 0e-eratio,/ 3ay be -eputi<e- by t.e Aut.ority a/ t.e /uper1i/or o0 t.eir 3e3ber/, a,- t.ey /.all .a1e t.e 0ollo8i,2 0u,ctio,/4 *?a@ De1elop /ta,-ar-/ a,- pro1i-e /er1ice/ 0or t.e be,e0it o0 it/ a00iliate/ a,- t.eir 3e3ber/ i, accor-a,ce 8it. t.e rule/ a,- re2ulatio,/ o0 t.e Aut.orityA *?b@ De0i,e co33o, ob;ecti1e/ a,- coor-i,ate acti1itie/ 0or t.e 0i,a,cial /er1ice cooperati1e 0e-eratio,A *?c@ E/tabli/. a,- a-3i,i/ter 0u,-/ /uc. a/ li=ui-ity 0u,-, loa, 0u,-, i,1e/t3e,t 0u,-, /tabili<atio, 0u,- a,/uc. ot.er 0u,-/A *?-@ E/tabli/. a /a1i,2/ 2uara,tee /y/te3 0or t.e protectio, o0 t.eir a00iliate/B 3e3ber:-epo/itor/ 8it.i, t.ree ?5@ year/ 0ro3 t.e appro1al o0 t.i/ Co-eA *?e@ E>erci/e o,:/ite a,- o00:/ite /uper1i/ory po8er o1er it/ 3e3ber/A *?0@ #ro1i-e re3e-ial a//i/ta,ce to it/ 3e3ber/ co,cer,i,2 t.eir operatio,/ a,- 3a,a2e3e,tA *?2@ Act a/ t.e li=ui-ator a,- 8.e, applicable, /e=ue/ter propertie/ to /ati/0y a, obli2atio, /ecure- by a 3ort2a2e 8.e, aut.ori<e- by t.e Aut.orityA a,*?.@ Tra,/3it rele1a,t a,- re=uire- i,0or3atio, re2ar-i,2 t.e operatio,/ a,- per0or3a,ce o0 3e3ber: cooperati1e/ to t.e Aut.ority. *T.e Aut.ority a,- ot.er 2o1er,3e,t a2e,cie/, 2o1er,3e,t:o8,e- or co,trolle- corporatio,/ a,- 2o1er,3e,t 0i,a,cial i,/titutio,/ /.all pro1i-e tec.,ical a,- /uc. ot.er a//i/ta,ce t.at 3ay be allo8e- by t.eir c.arter/ to 0i,a,cial /er1ice cooperati1e 0e-eratio,/ 0or t.e e/tabli/.3e,t a,-Gor /tre,2t.e,i,2 o0 t.eir re/pecti1e cooperati1e /a1i,2/ 2uara,tee /y/te3. T.e tec.,ical a//i/ta,ce to be pro1i-e- /.all i,clu-e, a3o,2 ot.er/, trai,i,2 /uper1i/io, a,- e>a3i,atio,. *ART. 126. De/i2,atio, o0 E>i/ti,2 C,it at t.e Cooperati1e De1elop3e,t Aut.ority to #er0or3 Re2ulatory a,&uper1i/ory Fu,ctio,/. )it.i, /i> ?7@ 3o,t./ 0ro3 t.e appro1al o0 t.i/ Co-e, t.e Aut.ority /.all -e/i2,ate t.e u,it to 0or3ulate a,- i3ple3e,t t.e ,ece//ary re2ulatio,/, rule/, policie/, 2ui-eli,e/ a,- /ta,-ar-/ applicable /olely to 0i,a,cial /er1ice cooperati1e/ a,- -eputi<e- 0e-eratio,/ i, t.e per0or3a,ce o0 t.eir /a1i,2/, cre-it a,- /uc. ot.er relate- e,.a,ce- 0i,a,cial /er1ice operatio,/.

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*T.e Depart3e,t o0 Fi,a,ce, t.e '&# a,- ot.er co,cer,e- 2o1er,3e,t a2e,cie/ /.all pro1i-e tec.,ical a,trai,i,2 /upport 0or t.e e00ecti1e a,- e00icie,t i3ple3e,tatio, o0 t.e re2ulatory a,- /uper1i/ory 0u,ctio,/ a,re/po,/ibilitie/ o0 t.e Aut.ority. *ART. 125. #ro.ibitio,. T.e ter3/ cre-it cooperati1e, 0i,a,cial /er1ice cooperati1e a,- 0i,a,cial /er1ice cooperati1e 0e-eratio, /.all be u/e- e>clu/i1ely by t.o/e 8.o are -uly re2i/tere- u,-er t.i/ Co-e, a,- ,o per/o,, 2roup o0 per/o,/, or or2a,i<atio,/ /.all u/e t.e /ai- ter3/ u,le// -uly re2i/tere- 8it. t.e Aut.ority. $iolatio,/ o0 t.i/ pro.ibitio, /.all be pu,i/.able i, accor-a,ce 8it. Article 160 o0 t.i/ Co-e.* &ec. 1+. A ,e8 C.apter o, Electric Cooperati1e/ /.all be i,/erte- a,- /.all rea-, a/ 0ollo8/4 C!A#TER K$II E%ECTRIC C""#ERATI$E *ART. 127. Co1era2e. T.e pro1i/io,/ o0 t.i/ Co-e /.all apply to all electric cooperati1e/ re2i/tere- 8it. t.e Aut.ority. T.i/ /.all al/o co1er ,e8 -i/tributio, utilitie/ t.at 8ill re2i/ter 8it. t.e Aut.ority. *Electric cooperati1e/ 3ay u,-erta9e po8er 2e,eratio, utili<i,2 re,e8able e,er2y /ource/, i,clu-i,2 .ybri/y/te3/, ac=ui/itio, a,- operatio, o0 /ubtra,/3i//io, or -i/tributio, a/ it/ pri3ary purpo/e/. *ART. 127. Re2i/tratio, o0 Electric Cooperati1e/. T.e re2i/tratio, o0 a, electric cooperati1e 8it. t.e Aut.ority u,-er t.i/ Co-e /.all be /ub3itte- 0or appro1al to t.e 3e3ber/ t.rou2. a re0ere,-u3, calle- 0or t.e purpo/e a/ pro1i-e- 0or u,-er Article/ 1+5 a,- 129 o0 t.i/ Co-e. *ART. 12+. $oti,2 Re=uire3e,t 0or Re2i/tratio,. I, co3plia,ce 8it. t.e re0ere,-u3 a/ a 1oti,2 proce-ure, t.e re=uire- ,u3ber o0 1ote/ 0or re2i/tratio, 8it. t.e Aut.ority /.all be t8e,ty perce,t ?20H@ o0 all 3e3ber/ i, 2oo- /ta,-i,2. *ART. 129. Docu3e,t/ to be &ub3itte- 0or Re2i/tratio, 8it. t.e Aut.ority. For purpo/e/ o0 re2i/tratio,, electric cooperati1e/ /.all /ub3it t.e 0ollo8i,2 -ocu3e,t/4 *?a@ Copy o0 t.e boar- re/olutio, certi0yi,2 to t.e re/ult o0 t.e 1ote appro1e- t.rou2. a re0ere,-u3 appro1i,2 t.e re2i/tratio, o0 t.e cooperati1e 8it. t.e Aut.ority i, co3plia,ce 8it. Article 12+A *?b@ Certi0ie- copy o0 t.e article/ o0 i,corporatio,Gcooperatio, a,- byla8/ a/ re=uire- by t.e Aut.orityA *?c@ Duly au-ite- 0i,a,cial /tate3e,t/ 0or t.e pa/t t8o ?2@ year/A *?-@ %i/t o0 ,a3e/ o0 i,cu3be,t boar- o0 -irector/ a,- t.eir a--re//e/ certi0ie- by t.e boar- /ecretary a,atte/te- by t.e c.airper/o,A *?e@ )it.i, /i> ?7@ 3o,t./ 0ro3 t.e re2i/tratio,, t.e trea/urer /.all /ub3it a /8or, /tate3e,t o0 t.e aut.ori<e/.are capital, t.e /ub/cribe- /.are capital o0 3e3ber/ a,- t.e a3ou,t o0 pai-:up /.are capital recei1e- by t.e trea/urerA a,*?0@ 'o,-/ o0 accou,table o00icer/. *ART. 150. Re2i/tratio, "ptio,/ o0 Electric Cooperati1e/. Electric Cooperati1e/ re2i/tere- 8it. t.e Natio,al Electri0icatio, A-3i,i/tratio, ?NEA@ u,-er #re/i-e,tial Decree No. 279, a/ a3e,-e- 8.ic. opt ,ot to re2i/ter 8it. t.e Aut.ority are allo8e- to retai, t.e 8or- *cooperati1e* i, t.eir re2i/tere- ,a3e/4 #ro1i-e-, T.at t.ey /.all ,ot be e,title- to t.e be,e0it/ a,- pri1ile2e/ u,-er t.i/ Co-e. *ART. 151. Role o0 t.e E,er2y Re2ulatory Co33i//io,. All rate/ a,- tari00/ o0 electric cooperati1e/ re2i/tereu,-er t.e Aut.ority /.all be /ub;ect to t.e rule/ o, applicatio, a,- appro1al o0 a,- by t.e E,er2y Re2ulatory Co33i//io, 0or -i/tributio, utilitie/. *ART. 152. E00ect/ o0 Re2i/tratio, 8it. t.e Aut.ority. ?1@ Cpo, t.e e00ecti1ity o0 t.i/ Co-e, electric cooperati1e/ t.at are -uly re2i/tere- 8it. t.e Aut.ority, a,- i//ue- a certi0icate o0 re2i/tratio,, /.all ,o lo,2er be co1ere- by Page1

#re/i-e,tial Decree No. 279, a/ a3e,-e- by #re/i-e,tial Decree No. 17654 #ro1i-e-, T.at electric cooperati1e/ re2i/tere- 8it. t.e Aut.ority /.all ,o8 be co1ere- by t.e pro1i/io,/ o0 t.i/ Co-e a/ 8ell a/ 0uture rule/ a,- i//ua,ce/ o0 t.e Aut.ority4 #ro1i-e-, .o8e1er, T.at t.e /ecurity o0 te,ure a,- t.e collecti1e bar2ai,i,2 a2ree3e,t bet8ee, t.e cooperati1e 3a,a2e3e,t a,- t.e e3ployee/ /.all be re/pecte-, 8it. ,o -i3i,utio, o0 t.eir e>i/ti,2 /alarie/, e3olu3e,t/, ra,9/ a,- ot.er be,e0it/A *?2@ T.e electric cooperati1e/ re2i/tere- 8it. t.e Aut.ority 8it. e>i/ti,2 loa,/ obtai,e- 0ro3 NEA a0ter Lu,e 27, 2001 /.all co,ti,ue to ob/er1e t.e ter3/ o0 /uc. loa,/ u,til 0ull pay3e,t or /ettle3e,t t.ereo0A *?5@ E>cept a/ pro1i-e- i, t.e i33e-iately prece-i,2 para2rap., t.e NEA /.all ,o lo,2er e>erci/e re2ulatory or /uper1i/ory po8er/ o, electric cooperati1e/ -uly re2i/tere- 8it. t.e Aut.orityA *?6@ Electric cooperati1e/ re2i/tere- 8it. t.e Aut.ority are e,title- to co,2re//io,al allocatio,/, 2ra,t/, /ub/i-iarie/ a,- ot.er 0i,a,cial a//i/ta,ce 0or rural electri0icatio, 8.ic. ca, be cour/e- t.rou2. t.e Depart3e,t o0 E,er2y, t.e Aut.ority a,-Gor local 2o1er,3e,t u,it/. T.e electric cooperati1e/ re2i/tere- u,-er t.i/ Co-e ca, a1ail o0 t.e 0i,a,cial /er1ice/ a,- tec.,ical a//i/ta,ce pro1i-e- by t.e 2o1er,3e,t 0i,a,cial i,/titutio,/ a,- tec.,ical -e1elop3e,t a2e,cie/ o, ter3/ re/pecti,2 t.eir i,-epe,-e,ce a/ auto,o3ou/ cooperati1e/A *?5@ All co,-o,e- loa,/, /ub/i-ie/, 2ra,t/ a,- ot.er a//i/ta,ce /.all 0or3 part o0 t.e -o,ate- capital a,- 0u,-/ o0 t.e electric cooperati1e/ a,- a/ /uc., it /.all ,ot be /ol-, tra-e- ,or be -i1i-e- i,to /.are.ol-i,2/ at a,y ti3eA t.e/e -o,ate- capitalG0u,- /.all be 1aluate- 0or t.e /ole purpo/e o0 -eter3i,i,2 t.e e=uity participatio, o0 t.e 3e3ber/4 #ro1i-e-, T.at i, t.e ca/e o0 -i//olutio, o0 t.e cooperati1e, /ai- -o,ate- capital /.all be /ub;ect to e/c.eatA a,*?7@ Electric cooperati1e/ re2i/tere- a,- co,0ir3e- 8it. t.e Aut.ority u,-er Republic Act No. 795+ a,Republic Act No. 7959 are .ereby -ee3e- re2i/tere- u,-er t.i/ Co-e. *ART. 155. &.are Capital i, t.e Electric Cooperati1e/. T.e electric cooperati1e /.all i//ue a,- -i/tribute /.are certi0icate/ u,-er t.e ,a3e o0 t.eir 3e3ber/, ta9i,2 i,to co,/i-eratio, t.eir pre1iou/ e=uity co,tributio,/, t.e a3orti<atio, co3po,e,t t.rou2. t.e pay3e,t/ 3a-e, capital buil-:up a,- ot.er capital co,tributio,/. *ART. 156. Ca,cellatio, o0 Re2i/tratio, 8it. t.e Aut.ority. T.e ca,cellatio, o0 t.e re2i/tratio, o0 a, electric cooperati1e /.all be 2ra,te- by t.e Aut.ority a/ pro1i-e- u,-er Article/ 76 to 70 o0 t.i/ Co-e. *T.e Aut.ority, i, co,/ultatio, 8it. t.e co,cer,e- cooperati1e /ector, /.all i//ue appropriate rule/ a,re2ulatio,/ pertai,i,2 to t.e pro1i/io,/ o0 t.i/ C.apter.* &ec.19. Article/ 119, 120 a,- 121 o0 C.apter K$I o, Mi/cella,eou/ #ro1i/io,/ o0 t.e /a3e Co-e are .ereby a3e,-e- a,- /.all ,o8 rea-, a/ 0ollo8/4 C!A#TER K$III MI&CE%%ANE"C& #R"$I&I"N& *ART. 155. Co3plia,ce )it. "t.er %a8/. T.e %abor Co-e a,- all ot.er labor la8/, t.e &ocial &ecurity Act, t.e Me-ical Care Act, a,- all ot.er /ocial le2i/latio,/, a,- all ot.er la8/ a,- e>ecuti1e or-er/ /.all apply to cooperati1e/ -uly re2i/tere- u,-er t.i/ Co-e. *ART. 157. Re2i/ter o0 Cooperati1e/. T.e Aut.ority /.all e/tabli/. a re2i/ter 8.ic. /.all co,tai, a c.ro,olo2ical e,try o0 t.e ,a3e o0 e1ery cooperati1e re2i/tere- or -i//ol1e- u,-er t.i/ Co-e to2et.er 8it. t.e ba/ic i,0or3atio, re=uire- 0or re2i/tratio, or -i//olutio, a,- a,y ot.er i,0or3atio, co,/i-ere- u/e0ul. T.e Aut.ority /.all publi/. a,,ually a li/t o0 e>i/ti,2 cooperati1e/, cooperati1e/ u,-er -i//olutio, a,- t.o/e 8.o/e re2i/tratio, are ca,celle- -uri,2 t.e year to2et.er 8it. /uc. i,0or3atio, o, eac. o0 t.e3 a/ 3ay be pre/cribei, t.e rule/ a,- re2ulatio,/. Page1 *ART. 157. &ettle3e,t o0 Di/pute/, Co,ciliatio,, a,- Me-iatio, #rocee-i,2/. Di/pute/ a3o,2 3e3ber/, o00icer/, -irector/, a,- co33ittee 3e3ber/, a,- i,tra:cooperati1e, i,ter:cooperati1e, i,tra:0e-eratio, or i,ter:

0e-eratio, -i/pute/ /.all, a/ 0ar a/ practicable, be /ettle- a3icably i, accor-a,ce 8it. t.e co,ciliatio, or 3e-iatio, 3ec.a,i/3/ e3bo-ie- i, t.e byla8/ o0 cooperati1e/ a,- i, /uc. ot.er applicable la8/. *T.e co,ciliatio, a,- 3e-iatio, co33ittee o0 t.e cooperati1e /.all 0acilitate t.e a3icable /ettle3e,t o0 i,tra: cooperati1e -i/pute/ a,- -i/pute/ a3o,2 3e3ber/, o00icer/, -irector/, a,- co33ittee 3e3ber/. *&.oul- /uc. co,ciliatio, or 3e-iatio, procee-i,2 0ail, t.e 3atter /.all be /ettle- t.rou2. 1olu,tary arbitratio,4 #ro1i-e-, .o8e1er, T.at be0ore a,y party ca, 1ali-ly 0ile a co3plai,t 8it. t.e Aut.ority 0or 1olu,tary arbitratio,, it 3u/t 0ir/t /ecure a certi0icatio, 0ro3 it/ co,ciliatio, a,- 3e-iatio, co33ittee a,- 0ro3 it/ co,ciliatio, a,3e-iatio, co33ittee a,- 0ro3 t.e cooperati1e u,io, or 0e-eratio, to 8.ic. it belo,2/ t.at -e/pite all e00ort/ to /ettle t.e i//ue/, t.e /a3e .a1e 0aile-. *T.e ;uri/-ictio, o0 t.e 1olu,tary arbitrator/ /.all be e>clu/i1e a,- ori2i,al a,- t.eir -eci/io,/ /.all be appealable to t.e "00ice o0 t.e #re/i-e,t. T.e Aut.ority /.all i//ue a,- a-opt t.e proper rule/ o0 proce-ure 2o1er,i,2 arbitratio, a/ t.e pri3ary a,- e>clu/i1e 3o-e 0or -i/pute re/olutio, i, accor-a,ce 8it. t.e Alter,ati1e Di/pute Re/olutio, Act o0 2006. *For t.i/ purpo/e, t.e Aut.ority /.all co,/titute a li/t o0 =uali0ie- 1olu,tary arbitrator/.* &ec. 20. A ,e8 article i/ i,/erte- i, C.apter K$III o, t.e Mi/cella,eou/ #ro1i/io,/ o0 t.e /a3e Co-e a,- /.all rea-, a/ 0ollo8/4 *ART. 15+. Loi,t Co,2re//io,al "1er/i2.t Co33ittee o, Cooperati1e ?LC"CC@. T.ere i/ .ereby create- a Loi,t Co,2re//io,al "1er/i2.t Co33ittee co3po/e- o0 t.e C.air3a, o0 t.e &e,ate Co33ittee o, Cooperati1e/ a,- t.e C.air3a, o0 t.e !ou/e Co33ittee o, Cooperati1e/ De1elop3e,t, 8it. 0our ?6@ 3e3ber/ eac. 0ro3 bot. !ou/e/. T.e /ai- 3e3ber/ /.all be -uly appoi,te- by t.e &e,ate #re/i-e,t a,- t.e &pea9er o0 t.e !ou/e o0 Repre/e,tati1e/ 0ro3 t.e 3e3ber/ o0 t.e re/pecti1e co33ittee ba/e- o, t.e proportio,al repre/e,tatio, o0 t.e partie/ or coalitio, t.erei,. *T.e Loi,t "1er/i2.t Co33ittee /.all re1ie8 a,- appro1e t.e i3ple3e,ti,2 rule/ a,- re2ulatio,/ o0 t.i/ Co-e a,- 3o,itor it/ proper i3ple3e,tatio,. *T.e a,,ual appropriate 0or t.e o1er/i2.t co33ittee /.all be c.ar2e- to t.e bu-2et o0 bot. !ou/e/ o0 Co,2re// i, t.e e,eral Appropriatio,/ Act ? AA@.* &ec. 21. Article 122 i/ .ereby -elete-. Article/ 125, 126, 125, 127, 127, 12+, 129 a,- 150 o0 C.apter K$II o, Fi,al #ro1i/io,/ o0 t.i/ Co-e are a3e,-e- to rea-, a/ 0ollo8/4 C!A#TER KIK FINA% #R"$I&I"N& *ART. 159. I3ple3e,ti,2 Rule/ a,- Re2ulatio,/. T.e Aut.ority /.all i//ue rule/ a,- re2ulatio,/ to i3ple3e,t t.o/e pro1i/io,/ o0 t.i/ Co-e 8.ic. e>pre//ly call 0or t.e i//ua,ce t.ereo0. T.i/ para2rap. /.all ,ot apply to t.o/e ca/e/ 8.erei, a /peci0ic pro1i/io, o0 t.i/ Co-e e>pre//ly -e/i2,ate/ particular 2o1er,3e,t a2e,cie/ 8.ic. /.all i//ue t.e re2ulatio,/ calle- 0or by a,y pro1i/io, o0 t.i/ Co-e. *ART. 160. #e,al #ro1i/io,/. T.e 0ollo8i,2 act/ or o3i//io,/ a00ecti,2 cooperati1e/ are .ereby pro.ibite-4 *?1@ T.e u/e o0 t.e 8or- DMNOcooperati1eB by a,y per/o, or o0 per/o,/ or or2a,i<atio,/, u,le// -uly re2i/terea/ a cooperati1e u,-er t.i/ Co-e e>cept a/ pro1i-e- 0or u,-er Article 150 .ereo0. I, ca/e o0 1iolatio,, t.e i,-i1i-ual or i,-i1i-ual/ co,cer,e-, or i, t.e ca/e o0 a, or2a,i<atio,, it/ o00icer/ a,- -irector/ /.all, upo, co,1ictio,, eac. /u00er t.e pe,alty o0 i3pri/o,3e,t o0 ,ot le// t.a, t8o ?2@ year/ ,or 3ore t.a, 0i1e ?5@ year/ a,- a 0i,e ,ot e>cee-i,2 T8e,ty t.ou/a,- pe/o/ ?#20,000.00@ or bot. at t.e -i/cretio, o0 t.e courtA *T.e Aut.ority 3ay 3otu proprio, i,itiate co3plai,t/ 0or 1iolatio,/ o0 t.i/ pro1i/io,. *?2@ A,y per/o, 8.o 8ill0ully atte3pt/ i, a,y 3a,,er to e1a-e or -e0eat ta> i, 1iolatio, o0 t.e pro1i/io,/ o0 Article/ 70 a,- 71 o0 t.i/ Co-e /.all i, a--itio, t.ereo0, be pu,i/.e- by a 0i,e o0 ,ot le// t.a, T.irty t.ou/a,Page1

pe/o/ ?#50,000.00@ but ,ot 3ore t.a, ",e .u,-re- t.ou/a,- pe/o/ ?#100,000.00@ a,- /u00er i3pri/o,3e,t o0 ,ot le// t.a, t8o ?2@ year/ but ,ot 3ore t.a, 0our ?6@ year/4 #ro1i-e-, T.at t.e co,1ictio, or ac=uittal obtai,eu,-er t.i/ Article /.all ,ot be a bar to t.e 0ili,2 o0 a ci1il /uit 0or t.e collectio, o0 ta>e/A *?5@ Direct or i,-irect 1iolatio, or circu31e,tio, o0 t.e pro1i/io,/ o0 Article/ 70 a,- 71 o0 t.i/ Co-e co33ittee by a,y public o00icial or e3ployee o0 a,y bureau, o00ice or a2e,cy o0 t.e 2o1er,3e,t t.at -epri1e/, -i3i,i/.e/ or i, a,y 3a,,er .i,-er/ or re/trict/ a,y -uly re2i/tere- cooperati1e 0ro3 t.e 0ull e,;oy3e,t o0 t.e e>e3ptio, 0ro3 t.e pay3e,t o0 t.e ta>e/, 0ee/ a,- c.ar2e/ e,u3erate- t.erei,, /.all upo, co,1ictio,, /u00er a pe,alty o0 ,ot le// t.at o,e ?1@ year but ,ot 3ore t.a, 0i1e ?5@ year/ i3pri/o,3e,t or a 0i,e i, t.e a3ou,t o0 ,ot le// t.a, Fi1e t.ou/a,- pe/o/ ?#5,000.00@ or bot. at t.e -i/cretio, o0 t.e court a,- /.all 0urt.er be -i/=uali0ie- to .ola,y ot.er o00iceA *?6@ Direct or i,-irect i,ter0ere,ce or i,ter1e,tio, by a,y public o00icial or e3ployee i,to t.e i,ter,al a00air/ o0 a cooperati1e o0 8.ic. .e i/ ,ot a 3e3ber, /uc. a/, but ,ot li3ite- to, t.e 0ollo8i,24 *?a@ I,0lue,ci,2 t.e electio, or appoi,t3e,t o0 o00icer/, -irector/, co33ittee 3e3ber/ a,- e3ployee/ t.rou2. public or pri1ate e,-or/e3e,t or ca3pai2, 0or or a2ai,/t a,y per/o, or 2roup o0 per/o,/A *?b@ Re=uiri,2 prior cleara,ce/ 0or a,y policy or -eci/io, 8it.i, t.e cooperati1eA *?c@ Re=ue/ti,2 or -e3a,-i,2 0or t.e creatio, o0 po/itio,/ or or2a,i<atio,al u,it/, or reco33e,-i,2 a,y per/o, 0or appoi,t3e,t, tra,/0er, or re3o1al 0ro3 .i/ po/itio,A or *?-@ A,y ot.er act/ i,i3ical or a-1er/e to t.e auto,o3y a,- i,-epe,-e,ce o0 cooperati1e/. *?5@ A -irector, o00icer or co33ittee 3e3ber 8.o 1iolate- t.e pro1i/io,/ o0 Article 65 o, t.e %iability o0 Director/, "00icer/ a,- Co33ittee Me3ber/, Article 6+ o, t.e Di/loyalty o0 a Director, a,- Article 69 o, t.e Ille2al C/e o0 Co,0i-e,tial I,0or3atio, /.all upo, co,1ictio, /u00er a 0i,e o0 ,ot le// t.a, Fi1e .u,-ret.ou/a,- pe/o/ ?#500,000.00@ ,or 3ore t.a, Fi1e .u,-re- t.ou/a,- pe/o/ ?#500,000.00@ or i3pri/o,3e,t o0 ,ot le// t.a, 0i1e ?5@ year/ but ,ot 3ore t.a, te, ?10@ year/ or bot. at t.e courtB/ -i/cretio,A *?7@ T.e 0ollo8i,2 are co,/i-ere- o00e,/e/ pu,i/.able by a pe,alty o0 i3pri/o,3e,t o0 ,ot le// t.a, o,e ?1@ year ,or 3ore t.a, 0i1e ?5@ year/ or a 0i,e o0 ,ot 3ore t.a, Fi0ty t.ou/a,- pe/o/ ?#50,000.00@ or bot. at t.e -i/cretio, o0 t.e court4 *?a@ "3i//io, or re0u/al to 0ur,i/. a,y i,0or3atio,, report or ot.er -ocu3e,t t.at i/ re=uire- u,-er t.i/ Co-eA *?b@ #ro1i-i,2 i,0or3atio,, report/ or ot.er -ocu3e,t/ to t.e Aut.ority t.at are re=uire- u,-er t.i/ Co-e 8.ic. t.e per/o, 9,o8/ to be 0al/e or 3i/lea-i,2A *?c@ "3i//io, or re0u/al to 9eep a boo9 or re2i/ter u,-er t.i/ Co-e or to 3a9e t.e re=uire- e,try t.erei,A *?-@ Ma9i,2 a, e,try re=uire- u,-er t.i/ Co-e i, a boo9 or re2i/ter, 8.ic. t.e per/o, 9,o8/ to be 0al/e or 3i/lea-i,2A *?e@ !i,-eri,2 a, aut.ori<e- per/o, 0ro3 3a9i,2 a, i,/pectio,, au-it, e>a3i,atio, or i,1e/ti2atio, re=uireu,-er t.i/ Co-eA *?0@ Failure to co3ply 8it. a, or-er or 8ritte, i,/tructio,/ i//ue- or 2i1e, by t.e Aut.orityA *?2@ $iolatio, o0 t.e pro1i/io,/ re2ar-i,2 tra,/actio,/ 8it. a re/tricte- partyA a,*?.@ Abetti,2, cou,/eli,2, allo8i,2, aut.ori<i,2 or co33a,-i,2 a,ot.er per/o, to co33it a, o00e,/e pu,i/.able by t.i/ Co-e4 #ro1i-e-, T.at i, ca/e t.e 1iolator i/ a cooperati1e or ;uri-ical per/o,, t.e pe,alty /.all be i3po/e- o, it/ -irector/ a,- o00icer/. Page1

*?7@ A,y 1iolatio, o0 a,y pro1i/io, o0 t.i/ Co-e 0or 8.ic. ,o pe,alty i/ i3po/e- /.all be pu,i/.e- by i3pri/o,3e,t o0 ,ot le// t.a, /i> ?7@ 3o,t./ ,or 3ore t.a, o,e ?1@ year a,- a 0i,e o0 ,ot le// t.a, ",e t.ou/a,- pe/o/ ?#1,000.00@, or bot. at t.e -i/cretio, o0 t.e court. *I, ca/e o0 1iolatio, o0 a,y pro1i/io, o0 t.i/ Co-e, t.e i,-i1i-ual or i,-i1i-ual/, a,- i, t.e ca/e o0 or2a,i<atio,/ or 2o1er,3e,t a2e,cie/, it/ o00icer/, a,- -irector/ /.all, upo, co,1ictio, by a Court, eac. /u00er a pe,alty o0 ,ot le// t.a, t8o ?2@ year/ but ,ot 3ore t.a, 0i1e ?5@ year/ i3pri/o,3e,t or a 0i,e i, t.e a3ou,t o0 ,ot le// t.a, T8e,ty t.ou/a,- pe/o/ ?#20,000.00@, or bot. at t.e -i/cretio, o0 t.e court. I, t.e ca/e o0 a public o00icial or e3ployee, t.e o00e,-er /.all upo, co,1ictio,, /u00er t.e acce//ory pe,alty o0 te3porary ab/olute -i/=uali0icatio,. *ART. 161. #ri,ti,2 a,- Di/tributio,. ?1@ T.e Natio,al #ri,ti,2 "00ice /.all publi/. t.i/ Co-e i, t.e "00icial a<ette i, 0ull 8it.i, /i>ty ?70@ -ay/ 0ro3 t.e -ate o0 appro1al t.ereo0. Copie/ o0 t.i/ Co-e /.all be 2i1e, to e1ery -epart3e,t, a2e,cy a,- i,/tru3e,tality o0 t.e Natio,al o1er,3e,t, i,clu-i,2 re2io,al, pro1i,cial o00ice/ a,- local 2o1er,3e,t/ i,clu-i,2 2o1er,3e,t:o8,e- a,- co,trolle- corporatio,/. *?2@ All -uly re2i/tere- cooperati1e/ a,- t.eir 0e-eratio,/, u,io,/ a,- a//ociatio,/, a,- cooperati1e corporatio,/ /.all be 2i1e, o,e ?1@ copy eac. at co/t. T.erea0ter, e1ery ,e8ly re2i/tere- cooperati1e /.all be i//ue- at co/t a copy o0 t.i/ Co-e a,- t.e re2ulatio,/ pro3ul2ate- t.ereo, to2et.er 8it. it/ certi0icate o0 re2i/tratio,. *ART. 162. I,terpretatio, a,- Co,/tructio,. I, ca/e o0 -oubt a/ to t.e 3ea,i,2 o0 a,y pro1i/io, o0 .i/ Co-e or t.e re2ulatio,/ i//ue- i, pur/ua,ce t.ereo0, t.e /a3e /.all be re/ol1e- liberally i, 0a1or o0 t.e cooperati1e/ a,- t.eir 3e3ber/. *ART. 165. Repeali,2 Clau/e. E>cept a/ e>pre//ly pro1i-e- by t.i/ Co-e, #re/i-e,tial Decree No. 175 a,- all ot.er la8/, or part/ t.ereo0, i,co,/i/te,t 8it. a,y pro1i/io, o0 t.i/ Co-e /.all be -ee3e- repeale-4 #ro1i-e-, T.at t.e pro1i/io,/ o0 &ec./ 5, 5, a,- 7 o0 #re/i-e,tial Decree No. 1765, E>ecuti1e "r-er No. 725, /erie/ o0 2007. Re1e,ue Re2ulatio, No. 20:2001, a,- all la8/, -ecree/, e>ecuti1e or-er/, i3ple3e,ti,2 rule/ a,re2ulatio,/, 'IR circular/, 3e3ora,-u3 or-er/, letter/ o0 i,/tructio,, local 2o1er,3e,t or-i,a,ce/, or part/ t.ereo0 i,co,/i/te,t 8it. a,y o0 t.e pro1i/io,/ o0 t.i/ Act are .ereby repeale-, a3e,-e- or 3o-i0ieaccor-i,2ly. *ART.166. Tra,/itory #ro1i/io,/.: ?1@ All cooperati1e/ re2i/tere- a,- co,0ir3e- 8it. t.e Aut.ority u,-er Republic Act No. 795+ a,- Republic Act No. 7959, are .ereby -ee3e- re2i/tere- u,-er t.i/ co-e, a,- a ,e8 certi0icate o0 re2i/tratio, /.all be i//ue- by t.e aut.ority4 #ro1i-e-, T.at /uc. cooperati1e /.all /ub3it to t.e ,eare/t o00ice o0 t.e aut.ority a copy o0 t.eir certi0icate o0 re2i/tratio, or certi0icate o0 co,0ir3atio,, t.e article/ o0 cooperatio,, t.eir byla8/, a,- t.eir late/t au-ite- 0i,a,cial /tate3e,t 8it.i, o,e ?1@ year 0ro3 t.e e00ecti1ity o0 t.i/ co-e, ot.er8i/e t.e /.all be -ee3e- ca,celle- 3otu proprio. *?2@ Follo8i,2 t.e i//ua,ce o0 t.e ,e8 certi0icate o0 re2i/tratio,, t.e re2i/tere- cooperati1e/ /.all /ecure- t.eir certi0icate o0 ta> e>e3ptio, 0ro3 t.e ,eare/t o00ice o0 t.e 'ureau o0 I,ter,al Re1e,ue ?'IR@4 #ro1i-e-, T.at /uc. e>e3ptio,/ /.all be 1ali- o0 0i1e ?5@ year/ 0ro3 t.e -ate o0 i//ue4 #ro1i-e-, 0urt.er, T.at all u,paia//e//3e,t/ o0 pre1iou/ly re2i/tere- cooperati1e /.all be t.e /ub;ect o0 co3pro3i/e /ettle3e,t o, ter3/ 0a1orable to /uc. cooperati1eA a,-4 #ro1i-e-, 0i,ally, T.at t.e 'IR a,- t.e aut.ority /.all be ;oi,tly i//ue t.e ,ece//ary re2ulatio,/ o, t.i/ e>e3ptio, a,- co3pro3i/e 8it.i, ,i,ety ?90@ -ay/ 0ro3 t.e e00ecti1ity 0ro3 t.i/ Co-e.

*?5@ Re2i/tratio, o0 electric cooperati1e/ 8it. t.e Aut.ority /.all ,ot be co,/i-ere- a/ a tra,/0erre- o0 o8,er/.ip o0 it/ a//et/ a,- liabilitie/ ,or /.all it co,/titute a c.a,2e i, t.e ,ature, /tructure, a,- /tatu/ o0 t.e cooperati1e. &ai- re2i/tratio, /.all ,ot re/ult i, t.e re1ocatio, o0 t.e co,-o,e- loa,/ u,-er Republic Act No. 9157, ot.er8i/e 9,o8, a/ t.e Electric #o8er I,-u/try Re0or3 Act4 #ro1i-e-, T.at electric cooperati1e/ 8it. e>i/ti,2 loa,/ /.all ,ot be /ub;ect to t.e co,trol a,- /uper1i/io,/ o0 it/ cre-itor/ a,- /.all o,ly be li3ite- to t.e 0ul0ill3e,t o0 eac. ci1il obli2atio,/.

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*ART.165. &eparabilty Clau/e. : &.oul- a,y part o0 t.i/ co-e be -eclare- u,co,/titutio,al, t.e 1ali-ity o0 re3ai,i,2 pro1i/io, .ereo0 /.all re3ai, i, 0ull a,- e00ect. *ART.167. E00ecti1ity Clau/e. : T.i/ co-e /.all ta9e e00ect 0i0tee, ?15@ -ay/ 0ro3 it/ publicatio, i, a ,e8/paper o0 2e,eral circulatio,. Appro1e-4 ?&2-.@ #R"&#ER" C. N" RA%E& &pea9er o0 t.e !ou/e o0 Repre/e,tati1e/ ?&2-.@ LCAN #"NCE ENRI%E #re/i-e,t o0 t.e &e,ate T.i/ Act 8.ic. i/ a co,/oli-atio, o0 &e,ate 'ill No. 2276 a,- !ou/e 'ill No. 6512 8a/ 0i,ally pa//e- by t.e &e,ate a,- t.e !ou/e o0 Repre/e,tati1e/ o, Dece3ber 17, 200+. ?&2-.@ MARI%JN '. 'ARCA:JA# &ecretary e,eral !ou/e o0 Repre/e,ati1e/ ?&2-.@ EMMA %IRI":REJE& &ecretary o0 &e,ate Appro1e-4 February 17, 2009 ?&2-.@ %"RIA MACA#A A%:ARR"J" #re/i-e,t o0 t.e #.ilippi,e/

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