Title Reg2 Cooperative - Chapter XI - XVII.docx ✅

COOPERATIVE CODE: CHAPTER XI - XVII CHAPTER XI: AGRARIAN REFORM COOPERATIVES [Art. 89] Cooperative Estate Landholdings like plantations, estates or haciendas acquired by the State for the benefit of the workers in accordance with the Comprehensive Agrarian Reform Program which shall be collectively owned by the worker-beneficiaries under a cooperative set-up. [Art. 90] Infrastructure In agrarian reform and resettlement areas, the Government shall grant to agrarian reform cooperatives preferential treatment in the construction, maintenance and management of roads, bridges, canals, wharves, ports, reservoirs, irrigation systems, waterworks systems, and other infrastructures with government funding. ● For this purpose, the Government shall provide technical assistance, facilities and equipment to such agrarian reform cooperatives. [Art. 91] Lease of Public Lands The Government may lease public lands to any agrarian reform cooperative for a period not exceeding twenty-five (25) years, subject to renewal for another twenty-five (25) years only: ● Provided, That the application for renewal shall be made one (1) year before the expiration of the lease. ● Provided, further, That such lease shall be for the exclusive use and benefit of the beneficiaries and marginal farmers subject to the provisions of the Comprehensive Agrarian Reform Program. [Art. 92] Preferential Right In agrarian reform areas, an agrarian reform cooperative shall have the preferential right in the grant of franchise and certificate of public convenience and necessity for the operation of public utilities and services: ● Provided, That it meets the requirements and conditions imposed by the appropriate government agency granting the franchise or certificate of public convenience and necessity. ● ● If there is an electric service provider in the area, it shall upon the request of an agrarian reform cooperative, immediately provide electric services to the agrarian reform areas. ● If the electric service provider fails to provide the services requested within a period of one (1) year, the agrarian reform cooperative concerned may undertake to provide the electric services in the area through its own resources. ● All investments made by the said agrarian reform cooperative for the electrification of the agrarian reform resettlement areas shall be the subject of sale to the electric service provider once it takes on the service. [Art. 94] Organization and Registration Agrarian reform cooperatives may be organized and registered under this Code only upon prior written verification by the DAR to the effect that the same is needed and desired by the beneficiaries; results of a study that has been conducted fairly indicate the economic feasibility of organizing the same and that it will be economically viable in its operations; and that the same may now be organized and registered in accordance with requirements of this Code. The Authority, in consultation with the concerned government agencies and cooperative sector, shall issue appropriate rules and regulations pertaining to the provisions of this Chapter.

Macaraeg|Page 3 of one-half plus one of all the members of the board of directors. ● Each director shall only have one vote. ● Notwithstanding the provisions of this Code to the contrary, the quorum requirement for amendments of articles of cooperation and bylaws shall be three-fourths (3/4) vote of all the members with voting rights, present and constituting a quorum. ● All other voting requirements shall be as prescribed by the BSP. [Art. 101] Capital Requirements of Cooperative Banks (1) A cooperative bank shall have a minimum paid-up capital in such amount as may be required by the BSP. The BSP may prescribe rules and regulations on the types of shares a cooperative bank may issue, including the terms thereof and rights appurtenant thereto to determine compliance with laws and regulations governing capital and equity structure of banks: Provided, That cooperative banks shall issue par value shares only. (2) The Barrio Savings Fund (BSF) and Barrio Guarantee Fund (BGF) collected/deducted by various banks throughout the country from the loan proceeds of farmer-borrowers who were members of cooperatives and Samahang Nayon in compliance with Presidential Decree No. 175 and accompanying letters of instruction, which are still floating and outstanding either as active or dormant deposit accounts in the books of those banks, shall be deposited to the cooperative bank located in the province where the depository banks of BSF and BGF are located, or if there is no cooperative bank in the province. The BSP, in coordination with the Authority, shall come up with the implementing guidelines on how to credit the owners of the funds. Those funds whose owners could not be located or identified shall be subject to escheat. CHAPTER XIII: INSURANCE COOPERATIVE [Art. 105] Cooperative Insurance Societies Existing cooperatives may organize themselves into a cooperative insurance entity for the purpose of engaging in the business of insuring life and property of cooperatives and their members. [Art. 106] Types of Insurance Provided Under the cooperative insurance program established and formed by the virtue of the provisions of this Code, the cooperative insurance societies shall provide its constituting members different types of insurance coverage consisting of, but not limited to: a. Life insurance with special group coverage, b. Loan protection, c. Retirement plans, d. Endowment, e. Motor vehicle coverage, f. Bonding, g. Crop and livestock protection and h. Equipment insurance.