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PRESIDENTIAL DECREE NO. 2008
PRESIDENTIAL DECREE NO. 2008 -
FURTHER STRENGTHENING THE COOPERATIVE MOVEMENT BY AMENDING CERTAIN
PROVISIONS OF PRESIDENTIAL DECREE NUMBERED ONE HUNDRED SEVENTY-FIVE, AS
AMENDED BY PRESIDENTIAL DECREE NUMBERED NINETEEN HUNDRED AND FIFTY-FIVE
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WHEREAS,
cooperatives constitute institutional vehicles to enhance productivity
and increase the income of the people through built-in-mechanisms of
economics of scale, costs-sharing and risk-sharing;chanroblesvirtualawlibrary
WHEREAS, it is vital and necessary for the government to encourage
people to organize cooperatives that will provide for their need at the
lowest possible cost and at the same time increase their incomes and
productivity;chanroblesvirtualawlibrary
WHEREAS, to strengthen the cooperatives, there is need to restore to
them certain privileges which were suspend by PD 1955; chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
decree:cralaw:red
Section 1. Section 4 of Presidential Decree Numbered
One Hundred Seventy-Five, as amended by Presidential Decree Numbered
Nineteen Hundred and Fifty-Five, is hereby amended to read as follows:cralaw:red
"Sec. 4. Powers of Cooperatives. — Cooperatives shall
have the following powers:cralaw:red
"(a) To exercise the same rights and privileges given
to persons, partnerships and corporations provided under existing laws;"
"(b) To establish and operate business enterprises of
all kinds as their needs dictate and their capabilities allow subject
to the provisions of existing laws;"
"(c) To establish rural banks under the Rural Bank
Act and/or to purchase government-held preferred shares of rural banks
which may be converted to voting common stocks, under the rules and
regulations to be promulgated by the Monetary Board of the Central Bank
and the Agrarian Reform Fund Commission: Provided, however, That
registration with the Bureau of Cooperatives Development of
Cooperatives Rural Banks and other cooperative banks organized under
this Decree shall be sufficient for said banks to acquire legal
personality to apply and qualify for licensing by the Central Bank of
the Philippines, without need for registration as corporations with the
Securities and Exchange Commission, notwithstanding the provisions of
R.A. 337, as amended and/or R.A. 720 as amended: Provided, further,
That said banks shall be subject to the supervision of the Bureau of
Cooperatives Development so far as the provisions of this Decree are
concerned and to the Central Bank of the Philippines on banking
transactions;" chanroblesvirtualawlibrary
"(d) To enjoy all the privileges and incentives
granted by the NACIDA Act and those granted by all government agencies
to business organizations under existing laws, provided that all
requirements are met;"
"(e) To petition the government to expropriate idle,
urban or rural lands for agricultural production, cottage industry,
business or housing purposes; and"
"(f) To own and dispose of property, to enter into
contract, to sue or be sued, and to do and perform such other acts as
may be necessary in the pursuit of its objectives."
Section 2. Section 5 of the same Decree is amended
to read as follows:cralaw:red
"Sec. 5. Privileges of Cooperatives. — Cooperatives
which are in good standing as certified by the BCOD/MAF shall enjoy the
following privileges; chanroblesvirtualawlibrary
"(a) Exemption from income and sales taxes until
December 31, 1991: Provided, That a substantial portion of the net
income of the Cooperative is returned to members in the form of
interests and/or patronage refunds: Provided, further, That those
cooperatives whose tax exemption privileges under this Decree have
already expired shall continue to enjoy such privileges but in no case
shall extension go beyond December 31, 1991: Provided, finally, That
the cooperative's taxable income shall mean that portion of the
Cooperative's income after deducting the interest and patronage funds
to its members;"
"(b) In areas where appropriate cooperatives exist,
the preferential right to supply rice, corn and other grains, fish and
other marine products, meat, eggs, milk, vegetables, tobacco and other
agricultural commodities produced by members of the cooperatives
concerned to State Agencies administering price stabilization programs;"
"(c) In appropriate cases, exemption from the
application of the Minimum Wage Law upon the recommendation of the
Bureau of Cooperatives Development subject to the approval of the
Minister of Labor and Employment;"
"(d) Exemption of its securities from all provisions
of the Securities Act provided such securities are not speculative;"
"(e) Of being represented in the Court by the
Provincial or City Fiscal where the cooperative is located or the
Solicitor General in any case in which the Cooperative is either a
Plaintiff or Defendant, except where the Philippine Government is the
plaintiff or defendant;"
"(f) Cooperatives and/or their Federations shall have
preferential rights in the management of public markets and/or lease of
public market facilities, stalls, or spaces;"
"(g) Credit cooperatives and/or federations shall be
entitled to loans, credit lines, rediscounting of their loan notes and
other eligible papers with the Development Bank of the Philippines, the
Philippine National Bank, the Land Bank of the Philippines, and other
financial institutions except the Central Bank of the Philippines;"
"(h) Whenever a Cooperative Rural Bank of the
Cooperative Bank organized under this Decree distressed or may need
assistance in the rehabilitation of its financial condition or to avoid
bankruptcy, the Land Bank of the Philippines shall take such steps to
strengthen and/or rehabilitate such banks, including interim take over
or management of said banks pursuant to the provisions of Section 29
Republic Act No. 215, as amended."
Section 3. Section 9 of the same Decree is amended
to read as follows:cralaw:red
"Sec. 9. Penal Provisions. — (a) No person or group
of persons other than cooperatives registered pursuant to the
provisions of this act or other existing laws shall use in its name the
word "cooperatives" or its equivalent in the vernacular: Provided,
however, That any person or group of persons or their
successors-in-interest who have been using the word cooperative on its
equivalent in the vernacular in the name or its under which they have
carried on their business before the promulgation of this Act may
continue to use the word Cooperative or its equivalent in the
vernacular. Violators shall suffer a fine of ten thousand pesos and/or
imprisonment of not more than two years, at the discretion, of the
Court."
"(b) Any official of the cooperative elected or
appointed who commits an offense punishable under the Revised Penal
Code or other laws where the offended party is a Cooperative shall in
addition to the penalty therein, be penalized in the same way as if
such official was a civil servant with perpetual disqualification to
hold any elective or appointive office."
"(c) Any official of the State elected to appointed
and not belonging to the Ministry of Agriculture and Food, who
willfully and unduly interferes with the business activities and
internal affairs of any cooperative of which may not be a member shall
be penalized by a fine of not more than five thousand pesos (P5,000.00)
and/or imprisonment of not more than six (6) months."
"(d) Individuals who are found to have original
cooperatives for the evident purpose of taking advantage of the
privileges granted to cooperatives under this act or who operated such
organizations in clear violation of cooperative principles herein set
forth or who use cooperatives as fronts to evade taxes or to take
advantage of cooperative privileges as adjudged by a competent court
shall be subject to attachment of all their assets in such
organizations and such organizations shall summarily be stopped from
operation; And such individuals shall upon conviction, suffer a fine of
Ten Thousand Pesos or imprisonment of three years at the discretion of
the Court without prejudice to other penalties as provided for under
existing laws. The tax exemption privileges of such cooperatives shall
be considered automatically withdrawn."
"(e) Any officer, Director or Committee member of a
cooperative who commits any of the following acts, shall upon
conviction be punished with a fine of not less than Two Thousand Pesos
(P2,000.00) without prejudice to other legal remedies and/or penalties
under existing laws, to wit:cralaw:red
"1) Fails, without reasonable excuse, to give notice,
send any return or document, do or allow to be done anything which the
cooperative, officer, director or committee member or members is by
this Decree required to give, send, do or allow to be done; or
"2) Neglects or refuses to do any act to furnish
information required for the purposes of this Act by the Bureau of
Cooperatives Development or other officer duly authorized by said
office in writing in its behalf; or
"3) Recommends or sanctions for his own benefit or
personal use a loan in the name of any other person inspite of the
concurrence of such other person; or
"4) In case of credit cooperative and credit union
grant loans to non-members except on the security of their depositors
or to members on the pledge of their shares or for the return of shares
of certain members or all the members without resolution of the Board
or the General Assembly, as the case may be, with a view of depriving
the creditors of the cooperative."
Section 4. Repealing Clause. — All laws, decrees,
proclamation, letters of instructions, rules and regulations or any
part thereof which are inconsistent with the provisions of this Decree
are hereby repealed or modified accordingly. If for any reason, any
section or provision of this Decree is declared unconstitutional or
invalid, the other sections or provisions hereof which are not affected
thereby, shall continue in full force and effect.
Section 5. This Decree shall take effect immediately.
DONE in the City of Manila,
this 8th day of January, in the Year of Our Lord, Nineteen Hundred and
Eighty-Six.
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