Philippine Cooperative Code of 2008

Article 114

This Chapter shall apply to credit cooperatives and other cooperatives, including multipurpose cooperatives, that provide savings and credit to their members only. The rest of the provisions of this Code shall apply to them insofar as the same are not inconsistent with the provisions of this Chapter.

Article 115

A credit cooperative is a financial organization owned and operated by its members with the following objectives: (1) To encourage savings among its members; (2) To create a pool of such savings for which loans for productive or provident purpose may be granted to its members; and (3) To provide related services to enable its members to maximize the benefit from such loans.

Article 116

Credit cooperatives shall be organized and registered in accordance with the general provisions of this Code.

Article 117

Credit cooperatives may organize chapters or subsidiaries, or join leagues and federations for the purpose of providing commonly needed essential services including but not limited to the following: (1) Interlending of surplus fund;(2) Mutual benefits;(3) Deposit guarantee;(4) Bonding;(5) Education and training;(6) Professional and technical assistance;(7) Research and development;(8) Representation; and (9) Other services needed to improve their performance. Existing support organizations such as federations of credit cooperatives, credit cooperatives at the provincial, regional and national levels may continue as such under this Code.

Article 118

Existing credit and multipurpose cooperatives with savings and credit facilities shall formally inform the Authority of its intention to continue performing its present functions. Should the said cooperatives decide to exercise enhanced functions, it shall notify the Authority and satisfy the requirements for conversion to financial service cooperative.