Section 6
SEC. 6. Section eighteen of the same Act is hereby amended to read as follows: "SEC. 18. Transfer of functions, personnel, and equipment of the Cooperatives Administration Office.—All the powers vested in and the duties conferred upon the Cooperatives Administration Office by Commonwealth Act Numbered Five hundred and sixty-five, as amended by Commonwealth Act Numbered Seven hundred and thirteen, relative to the promotion, organization and supervision of cooperative marketing associations as authorized by Act Numbered Three thousand four hundred and twenty-five and such number of personnel and equipment as are now used and utilized in the promotion, organization and supervision of said cooperative marketing associations by the Cooperatives Administration Office and the unexpended balance of the funds provided for in Commonwealth Act Numbered Seven hundred and thirteen and Republic Act Numbered Five hundred and eighty-three, are hereby absorbed by, and transferred to the Agricultural Credit and Cooperative Financing Administration. "The supervisory powers of the Administration over farmers' cooperative marketing associations affiliated with it shall include the authority to declare vacant any or all offices or positions and order an election to nil them whenever any of the following grounds occur: "1. Serious losses in the business operations of the association. "2. Failure to pay or meet its obligations to the Administration or other parties. "3. Repeated and willful violation or disregard of rules and regulations of the Administration. "4. Extravagance in the management of the association resulting in serious depletion of its resources. "Action under this section shall be taken only upon approval by a majority vote of the Board of Governors and upon due notice to the association and after the officers concerned have been given a chance to be heard. The order relieving any officer or officers from any position shall state the ground or grounds therefor. "In case the association should refuse or fail to elect or appoint new officers, the Administration may designate new officers from the membership of the association or from its own staff to manage the affairs of the association until the order has been complied with or until the next election of officers. Nothing contained herein shall be construed to prevent any officer or officers removed by the Administration from contesting in the proper court the veracity of the ground or grounds upon which the authority has been exercised."