AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NUMBER ONE HUNDRED SEVENTY-FIVE, ENTITLE "STRENGTHENING THE COOPERATIVE MOVEMENT", RELATING TO THE REGULATORY POWERS OF THE DEPARTMENT OF LOCAL GOVERNMENT AND COMMUNITY DEVELOPMENT OVER COOPERATIVES.

• Number: Presidential Decree No. 501
• Sections: 4

Preamble

WHEREAS, under Republic Act No. 6038 which governs electric

cooperatives, and Presidential Decree No. 40 and Letter of Instructions

No. 38, the primary power and responsibility of promoting, organizing,

registering, assisting and regulating electric cooperatives is vested in

the National Electrification Administration;

WHEREAS, Presidential Decree No. 175, entitled

"Strengthening the Cooperative Movement" however, repealed all past

cooperative laws and vested in the Department of Local Government and

Community Development the full authority to promulgate rules and

regulations to govern the promotion, organization, registration,

regulation and supervision of all types of cooperatives;

WHEREAS, there is an imperative need to exclude electric

cooperatives from the operation of Presidential Decree No. 175 in

consonance with present developmental plans in the light of the

government's policy accelerating the development of rural

electrification by converting the National Electrification

Administration into a national corporation.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers vested in me by the Constitution do

hereby order and decree.

Section 1

SECTION 1. Section 8 of the Presidential Decree No. 175 is

hereby amended to read as follows:

Section 2

SECTION 2. This Decree shall take effect immediately.

Done in the City of Manila, this 28th day of June, in the year of

Our Lord, nineteen hundred and seventy-four.

(Sgd.)

FERDINAND E. MARCOS

President of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary

Section 8 Powers of Regulatory Agency.

SECTION 8. Powers of Regulatory Agency. — The

Department of Local Government and Community Development through the

Bureau of Cooperatives Development is vested with fall authority to

promulgate rules and regulations to govern the promotion, organization,

registration, regulation and supervision of all types of cooperative

except electric cooperatives which shall remain under the regulation and

supervision of the National Electrification Administration under the

provisions of Republic Act No. 6038 in conjunction with Presidential

Decree No. 40 and Letter of Instructions No. 38. Specifically, it shall

have the fallowing powers:

To call on any office, agency, instrumentality or

individuals belonging to the government or private sector for such

assistance as may be needed.

To register new cooperatives, re-register existing

cooperatives and regulate and supervise the following types of

cooperatives.

Barrio Associations which shall have the provisional

status of a cooperative and serve the requirements of Presidential

Decree No. 27 in the issuance of certificates of land transfer;

Local or primary cooperatives which shall be composed

of natural persons and/or barrio associations;

Federations which shall be composed of cooperatives

which may or may not perform business activities; and

Unions of cooperatives which shall not perform any

business activities. Provided, That in the case of

re-registration, the cooperative shall file its application or petition

for re-registration within a period of six (6) months from the date of

promulgation of this Decree, and its corporate existence shall be deemed

to continue until the application or petition is approved or denied; and

Provided, further, That for purposes of re-registration, Section 2

and 5 (a) hereof shall not be applicable to existing cooperatives which

do not meet the qualification requirements provided for in this Decree.

To determine the manner and extent by which powers,

privileges, assistance and support granted to cooperative provided by

this Decree shall be exercised or enjoyed by cooperatives;

To suspend the operation or cancel the registration of any

cooperative after hearing and when in its judgment and based on

findings, such cooperative is operating in violation of this Decree,

rules and regulations, existing laws as well as the by-laws of the

cooperative itself;

To liquidate and to determine disposal of assets and

settlement of liabilities of any cooperative which has been inoperable,

inactive or defunct or any cooperative violating the penal

provisions herein provided;

To recommend charges to be filed against any official of

any cooperative who has committed crimes against the cooperative or who

has violated the penal provisions herein provided; and to establish

rules and regulations governing the suspension and/or expulsion of any

members of a cooperative;

To condone the principal and/or accumulated interest on

past due production and/or farm improvement loans extended by the

Agricultural Credit and Cooperative Financing Administration and

the Agricultural Credit Administration to farmer members of

agricultural cooperatives, and to authorize writing off of bad debts or

bad accounts of agricultural cooperatives arising from loans granted

by the Agricultural Credit Administration subject to the rules and

regulations to be promulgated jointly by the Department of Local

Government and Community Development and the Department of Finance;

To recommend charges to be filed against non-farmers who

through misrepresentation have secured loans from the Agricultural

Credit and Cooperative Financing Administration or the Agricultural

Credit Administration through agricultural cooperatives;

To authorize the collection by barrio associations and

cooperatives past due loans granted by the Agricultural Credit and

Cooperative Financing Administration or the Agricultural Credit

Administration on a Commission basis; and

To authorize cooperatives to collect amortizations on lands

under Presidential Decree No. 27.