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PRESIDENTIAL DECREE NO. 501
PRESIDENTIAL DECREE NO. 501
- AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NUMBER ONE HUNDRED
SEVENTY-FIVE, ENTITLED "STRENGTHENING THE COOPERATIVE MOVEMENT",
RELATING TO THE REGULATORY POWERS OF THE DEPARTMENT OF LOCAL GOVERNMENT
AND COMMUNITY DEVELOPMENT OVER COOPERATIVES
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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;chanroblesvirtualawlibrary
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Cooperative Movement" however, repealed all past cooperative laws and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;chanroblesvirtualawlibrary
WHEREAS, there is an imperative need to exclude electric cooperative
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. chanroblesvirtualawlibrary
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 8 of the Presidential Decree No.
175 is hereby amended to read as follows:cralaw:red
"Section 8. Powers of Regulatory Agency. — The
Department of Local Government and Community Development through the
Bureau of Cooperatives Development is vested with full 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 following powers:cralaw:red
(a) To call on any office, agency, instrumentality or
individuals belonging to the government or private sector for such
assistance as may be needed.
(b) To register new cooperatives, re-register
existing cooperatives and regulate and supervise the following types of
cooperatives.
1) 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;chanroblesvirtualawlibrary
2) Local or primary cooperatives which shall be
composed of cooperatives which may or may not perform business
activities; and
3) 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
(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 be
applicable to existing cooperatives which do not meet the qualification
requirements provided for in this Decree.
(c) 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; chanroblesvirtualawlibrary
(d) 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;chanroblesvirtualawlibrary
(e) 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;chanroblesvirtualawlibrary
(f) 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;chanroblesvirtualawlibrary
(g) 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 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;chanroblesvirtualawlibrary
(h) 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;chanroblesvirtualawlibrary
(i) 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
(j) To authorize cooperatives to collect
amortizations on lands under Presidential Decree No. 27.
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.
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