AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NUMBER ONE HUNDRED SEVENTY-FIVE, ENTITLE “STRENGTHENING THE COOPERATIVE MOVEMENT”, RELATING TO THE REGULATORY POWERS OF THE DE…

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“Strengthening the Cooperative Movement” however, repealed all past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 8 of the Presidential Decree No. 175 is
hereby amended to read as follows:

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:

1. To call on any office, agency, instrumentality or
   individuals belonging to the government or private sector for such
   assistance as may be needed.
2. 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;
   2. Local or primary cooperatives which shall be composed
      of natural persons and/or barrio associations;
   3. Federations which shall be composed of cooperatives
      which may or may not perform business activities; and
   4. 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.

3. 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;
4. 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;
5. 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;
6. 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;
7. 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;
8. 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;
9. 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
10. 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.