REVIEWER IN COOPERATIVE

Purposes of Cooperatives

A cooperative may be organized and registered for any or all of the following purposes:
(1) To encourage thrift and savings mobilization among the members;
(2) To generate funds and extend credit to the members for productive and provident purposes;
(3) To encourage among members systematic production and marketing;
(4) To provide goods and services and other requirements to the members;
(5) To develop expertise and skills among its members;
(6) To acquire lands and provide housing benefits for the members;
(7) To insure against losses of the members;
(8) To promote and advance the economic, social and educational status of the members;
(9) To establish, own, lease or operate cooperative banks, cooperative wholesale and retail complexes, insurance and
agricultural/industrial processing enterprises, and public markets;
(10) To coordinate and facilitate the activities of cooperatives;
(11) To advocate for the cause of the cooperative movements;
(12) To ensure the viability of cooperatives through the utilization of new technologies;
(13) To encourage and promote self-help or self-employment as an engine for economic growth and poverty alleviation; and
(14) To undertake any and all other activities for the effective and efficient implementation of the provisions of RA 9520.

Cooperative Powers and Capacities.

A cooperative registered under RA9520 shall have the following powers, rights and capacities:
(1) To the exclusive use of its registered name, to sue and be sued;
(2) Of succession;
(3) To amend its articles of cooperation in accordance with the provisions of RA9520;
(4) To adopt bylaws not contrary to law, morals or public policy, and to amend and repeal the
same in accordance with this RA9520;
(5) To purchase, receive, take or grant, hold, convey, sell, lease, pledge, mortgage, and otherwise
deal with such real and personal property
(6) To enter into division, merger or consolidation, as provided in RA9520;
(7) To form subsidiary cooperatives and join federations or unions, as provided in RA9520;
(8) To avail of loans, be entitled to credit and to accept and receive grants, donations and assistance from foreign and domestic
sources
(9) To avail of preferential rights granted to cooperatives under Republic Act No. 7160, otherwise known as the Local
Government Code, and other laws, particularly those in the grant of franchises to establish, construct, operate and maintain
ferries, wharves, markets or slaughterhouses and to lease public utilities
(10) To organize and operate schools in accordance with Republic Act No. 9155, Governance of Basic Education Act of 2001
and other pertinent laws; and
(11) To exercise such other powers granted by RA9520 or necessary to carry out its purpose or purposes as stated in its Articles
of cooperation.

Kinds of Membership.

A cooperative may have two (2) kinds of members, to wit:

(1) regular members and (2) associate members.

• A regular member is one who has complied with all the membership requirements and entitled to all the rights and
privileges of membership.

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 • An associate member is one who has no right to vote nor be voted upon and shall be entitled only to such rights and
privileges as the bylaws may provide: Provided, That an associate who meets the minimum requirements of regular
membership, continues to patronize the cooperative for two (2) years, and signifies his/her intention to remain a
member shall be considered a regular member.
• A cooperative organized by minors shall be considered a laboratory cooperative and must be affiliated with a
registered cooperative.
• A laboratory cooperative shall be governed by special guidelines to be promulgated by the Authority.

Government Officers and Employees.

(1) Any officer or employee of the Authority shall be disqualified to be elected or appointed to
any position in a cooperative:
(2) All elective officials of the Government shall be ineligible to become officers and directors of
cooperatives:
(3) Any government employee or official may, in the discharge of is duties as a member in the cooperative, be allowed by the
end of office concerned to use official time for attendance at the general assembly, board and committee meetings of
cooperatives as well as cooperative seminars, conferences, work shops, technical meetings, and training courses locally or
abroad:

Application.
• An applicant for membership shall be deemed a member after approval of his membership by the board of directors
and shall exercise the rights of member after having made such payments to the cooperative in respect to
membership or acquired interest in the cooperative as may be prescribed in the bylaws.
• In case membership is refused or denied by the board of directors, an appeal may be made to the general assembly
and the latter’s decision shall be final.
• For this purpose, the general assembly may opt to create an appeal and grievance committee, the members of which
shall serve for a period of one (1) year and shall decide appeals on membership application within thirty (30) days
upon receipt thereof. If the committee fails to decide within the prescribed period, the appeal is deemed approved in
favor of the applicant.
Liability of Members. A member shall be liable for the debts of the cooperative to the extent of
his contribution to the share capital of the cooperative.

Termination of Membership.
(1) A member of a cooperative may, for any valid reason, withdraw his membership from the cooperative by giving a sixty (60)
day notice to the board of directors. Subject to the bylaws of the cooperative, the withdrawing member shall be entitled to a
refund of his share capital contribution and all other interests in the cooperative:
(2) The death or insanity of a member in a primary cooperative, and the insolvency or dissolution of a member in a secondary
or tertiary cooperative may be considered valid grounds for termination of membership:
(3) Membership in the cooperative may be terminated by a vote of the majority of all the members of the board of directors for
any of the following causes:
(a) When a member has not patronized any of the services of the cooperative for an unreasonable period of time as may be
previously determined by the board of directors;
(b) When a member has continuously failed to comply with his obligations;
(c) When a member has acted in violation of the bylaws and the rules of the cooperative; and
(d) For any act or omission injurious or prejudicial to the interest or the welfare of the cooperative.
• A member whose membership the board of directors may wish to terminate shall be informed of such intended action
in writing and shall be given an opportunity to be heard before the said board makes its decision.
• The decision of the board shall be in writing and shall be communicated in person or by registered mail to said
member and shall be appealable within thirty (30) days from receipt thereof to the general assembly whose decision
shall be final.

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 • The general assembly may create an appeal and grievance committee whose members shall serve for a period of one
(1) year and shall decide appeals on membership termination.
• The committee is given thirty (30) days from receipt thereof to decide on the appeal. Failure to decide within the
prescribed period, the appeal is deemed approved in favor of the member. Pending a decision by the general assembly,
the membership remains in force.

Refund of Interests. All sums computed in accordance with the bylaws to be due from a cooperative to a former member shall
be paid to him either by the cooperative or by the approved transferee, as the case may be, in accordance with RA9520.

ART. 32 Composition of the General Assembly. The general assembly shall be composed of such members who are entitled
to vote under the articles of cooperation and bylaws of the cooperative.

ART. 33 Powers of the General Assembly. The general assembly shall be the highest policy-making body of the cooperative
and shall exercise such powers as are stated in this Code, in the articles of cooperation and in the bylaws of the cooperative.
The general assembly shall have the following exclusive powers which cannot be delegate:
(1) To determine and approve amendments to the articles of cooperation and bylaws
(2) ; To elect or appoint the members of the board of directors, and to remove them for cause.
However, in the case of the electric cooperatives registered under this Code, election of the members of the board shall be
held in accordance with its bylaws or election guideline of such electric cooperative; and
(3) To approve developmental plans of the cooperative.
• Subject to such other provisions of this Code and only for purposes of prompt and intelligent decision-making, the
general assembly may be a three-fourths (3/4) 75% vote of all its members with voting rights,
ART. 34 Meetings.
(1) A regular meeting shall be held annually by the general assembly on a date fixed in the bylaws, or if not so fixed, on any
dated within ninety (90) days after the close of each fiscal year: Provided, That notice of regular meetings shall be sent in
writing, by posting or publication, or through other electronic means
(2) a special meeting of the general assembly may be called at any time by a majority vote of the board of directors or as
provided for in the bylaws: Provided, That a notice in writing shall be sent one (1) week prior to the meeting to all members who
are entitled to vote.
• However, a special meeting shall be called by the board of directors after compliance with the required notice within
from at least ten per centum (10%) of the total members who are entitled to vote to transact specific business
covered by the call.
• If the board fails to call a regular or a special meeting within the given period, the Authority, upon petition of ten per
centum (10%) of all the members of the cooperative who are entitled to vote, and for good cause shown, shall issue
an order to the petitioners directing them to call a meeting of the general assembly by giving proper notice as required
in this Code or in the bylaws;
(3) In the case of a newly approved cooperative, a special general assembly shall be called, as
far as practicable, within ninety (90) days from such approval;
(4) The Authority may call a special meeting of the cooperative for the purpose of reporting to
the members the result of any examination or other investigation of the cooperative affairs; and
(5) Notice of any meeting may be waived, expressly or impliedly, by any member.

ART. 35 Quorum.
• A quorum shall consist of at least twenty-five per centum (25%) of all the members entitled to vote.
• In the case of cooperative banks, the quorum shall be as provided in Article 99 of this Code.
• In the case of electric cooperatives registered under this Code, a quorum, unless otherwise provided in the bylaws,
shall consist of five per centum (5%) of all the members entitled to vote.

ART. 36 Voting System.

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 • Each member of a primary cooperative shall have only one (1) vote.
• In the case of members of secondary or tertiary cooperatives, they shall have one (1) basic vote and as many incentive
votes as provided for in the bylaws but not exceed five (5) votes.
• However, the bylaws of a cooperative other than a primary may provide for voting by proxy. Voting by proxy means
allowing a delegate of a cooperative to represent or vote in behalf of another delegate of the same cooperative.

ART. 37 Composition and Term of the Board of Directors.

• the direction and management of the affairs of a cooperative shall be vested in a board of directors which shall be
composed of not less that five (5) nor more than fifteen (15) members elected by the general assembly for a term of
two (2) years and shall hold office until their successors are duly elected an qualified, or until duly removed for
caused.

ART. 38 Powers of the Board of Directors.

• The board of directors shall be responsible for the strategic planning, direction-setting and policy formulation
activities of the cooperatives.

ART. 39 Directors.
(1) Any member of a cooperative who under the bylaws of the cooperative, has the right to vote and who possesses all the
qualifications and none of the disqualifications provided in the laws or bylaws shall be eligible for election as director.
(2) The cooperative may, by resolution of its board of directors, admit as directors, or committee member one appointed by any
financing institution from which the cooperative received financial assistance solely to provide technical knowledge not
available within its membership. Such director or committee member not be a member of the cooperative and shall have no
powers, rights, nor responsibilities except to provided technical assistance as required by the cooperative.
(3) The members of the board of directors shall not hold any other position directly involved in the day to day operation and
management of the cooperative.
(4) Any person engaged in a business similar to that of the cooperative or who in any way has a conflict of interest with it, is
disqualified from election as a director of said cooperative.

ART. 40 Meeting of the Board and Quorum Requirement.

(1) In the case of primary cooperatives, regular meetings of the board of directors shall be held at least once a month.
(2) Special meetings of the board of directors may be held at any time upon the call of the chairperson or a majority of the
members of the board: Provided, That written notices of the meeting shall be given to all members of the board at least one (1)
week before the said meeting
(3) A majority of the members of the Board shall constitute a quorum or the conduct of business, unless the bylaws proved
otherwise.
(4) Directors cannot attend or vote by proxy at board meetings.

ART. 41 Vacancy in the Board of Directors.

• Any vacancy in the board of directors, other than by expiration of term, may be filled by the vote of at least a majority
of the remaining directors, if still constituting a quorum; otherwise, the vacancy must be filled by the general assembly
in a regular or special meeting called for the purpose. A director so elected to fill a vacancy shall serve only the
unexpired term of his predecessor in office.

ART. 42 Officers of the Cooperative.

• The board of directors shall elect from among themselves the chairperson and vice-chairperson, and elect or appoint
other officers of the cooperative from outside of the board in accordance with their bylaws. All officers shall serve
during good behavior and shall not be removed except for cause after due hearing.
• Loss of confidence shall not be a valid ground for removal unless evidenced by acts or omission causing loss of
confidence in the honesty and integrity of such officer.

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ART. 43 Committees of Cooperatives.
(1) The bylaws may create an executive committee to be appointed by the board of directors with such powers and duties as
may be delegated to it in the bylaws or by a majority vote of all the members of the board of directors.
(2) The bylaws shall provide for the creation of an audit, election, mediation and conciliation, ethics, and such other
committees as may be necessary for the conduct of the affairs of the cooperative.
• The members of both the audit and election committee shall be elected by the general assembly and the rest shall
be appointed by the board.
• The audit committee shall be directly accountable and responsible to the general assembly. It shall have the power
and duty to continuously monitor the adequacy and effectiveness of the cooperative’s management control system
and audit the performance of the cooperative and its various responsibility centers.

ART. 44 Functions, Responsibilities and Training Requirements of Directors, Officers and Committee Members. The
functions and responsibilities of directors, officers and committee members, as well as their training requirements, shall be in
accordance with the rules and regulations issued by the Authority.

ART. 45 Liability of Directors, Officers and Committee Members.

• Directors, officers and committee members, who are willfully and knowingly vote for or assent to patently unlawful
acts or who are guilty of gross negligence or bad faith in directing the affairs of the shall be liable jointly and severally
for all damages or profits resulting therefrom to the cooperative, members, and other persons.
• When a director, officer or committee member attempts to acquire or acquires, in violation of his duty, he shall, as a
trustee for the cooperative, be liable for damages and shall be accountable for double the profits which otherwise
would have accrued to the cooperative.

ART. 46 Compensation.
(1) the directors shall not receive any compensation except for reasonable per diems: Any compensation other than per diems
may be granted to directors by a majority vote of the members with voting rights at a regular or special general assembly
meeting specifically called for the purpose: Provided, That no additional compensation other than per diems shall be paid
during the first year of existence of any cooperative.
(2) The compensation of officers of the cooperative as well as the members of the committee as well as the members of the
committees created pursuant to this Code or its bylaws may be fixed in the bylaws.
(3) Unless already fixed in the bylaws, the compensation of all other employee shall be determined by the board of directors.

ART. 47 Dealings of Directors, Officers, or Committee Members.

• A contract entered into by the cooperative with one (1) or more of its directors, officers, and committee members is
voidable, at the option of the cooperative, unless all the following conditions are present.
(1) That the presence of such director in the board meeting wherein contract was approved was not necessary to constitute a
quorum for such meeting;
(2) That the vote of such director was not necessary for the approval of the contract;
(3) That the contract is fair and reasonable under the circumstances; and
(4) That in the case of an officer or committee member, the contract with the officer or committee member has been previously
authorized by the general assembly or by the board of directors.

ART. 48 Disloyalty of a Director.

• A director who, by virtue of his office, acquires for himself an opportunity which should belong to the cooperative
shall be liable for damages and must account for double the profits that otherwise would have accrued to the
cooperative by refunding the same, unless his act has been ratified by a three-fourths (3/4) vote of all the members
with voting rights, present and constituting a quorum. This provision shall be applicable, notwithstanding the fact
that the director used his own funds in the venture.

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ART. 49 Illegal Use of Confidential Information.
(1) A director or officer, or an associate of a director or officer, who, for his benefit or advantage or that of an associate,
makes use of confidential information that, if generally known, might reasonably be expected to adversely affect the operation
and viability of the cooperative, shall be held:
(a) Liable to compensate the cooperative for the direct losses
(b) Accountable to the cooperative for any direct benefit or advantage received or yet to be received by him or his associate
(2) The cooperative shall take the necessary steps to enforce the liabilities described in subsection (a)

ART. 50 Removal.
• All complaints for the removal of any elected officer shall be filed with the board of directors.
• An elective officer may be removed by three fourths (3/4) votes of the regular members present and constituting a
quorum, in a regular or special general assembly meeting called for the purpose.

RESPONSIBILITIES, RIGHTS AND PRIVILEGES OF COOPERATIVE

ART. 51 Address.
Every cooperative shall have an official postal address to which all notices and communications shall be sent. Such address
and every change thereof shall be registered with the Authority.

ART. 52 Books to be Kept Open.

(1) Every cooperative shall have the following documents
(a) A copy of this Code and all other laws pertaining to cooperatives;
(b) A copy of the regulations of the Authority;
(c) A copy of the articles of cooperation and bylaws of the cooperative;
(d) A register of members;
(e) The books of the minutes of the meetings of the general assembly, board of directors and committee;
(f) Share books, where applicable;
(g) Financial statement; and
(h) Such other documents as may be prescribed by laws or the bylaws.
(2) The accountant or the bookkeeper of the cooperative shall be responsible for the maintenance of the cooperative in
accordance with generally accepted accounting practices.
• The audit committee shall be responsible for the continuous and periodic review of the books and records of
account to ensure that these are in accordance with generally accepted accounting practices
(3) Each cooperative shall maintain records of accounts such that the true and correct condition. The
financial statements, audited according to generally accepted auditing standards, principles and
practices, shall be published annually and shall be kept posted in a conspicuous place in the principal office of the
cooperative.
(4) Subject to the pertinent provisions of the National Internal Revenue Code and other laws, a
cooperative may dispose by way of burning or other method of complete destruction any document, record or book pertaining
to its financial and nonfinancial operations which are already more than five (5) years old except those relating to
transactions which are the subject of civil, criminal and administrative proceedings. An inventory of the audited documents,
records and books to be disposed of shall be drawn up and certified to by the board secretary and the chairman of the audit
committee and presented to the board of directors which may thereupon approve the disposition of said records.

ART. 53 Reports.
(1) Every cooperative shall draw up regular reports of its program of activities, including those in pursuance of their
socio-civic undertakings, showing their progress and achievements at the end of every fiscal year.
• The reports shall be made accessible to its members, and copies thereof shall be furnished to all its members or
record.

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 • These reports shall be filed with the Authority within one hundred twenty (120) days from the end of the calendar
year.
• Failure to file the required reports shall subject the accountable officer/s to fines and penalties as may be prescribed
by the Authority, and shall be a ground for the revocation of authority of the cooperative to operate as such.
• The fiscal year of every cooperative shall be the calendar year except as may be otherwise provided in the bylaws.
(2) If a cooperative fails to make, publish and file the reports required herein, or fails to include therein any matter required by
the Code, the Authority shall, within fifteen (15) days from the expiration of the prescribed period, send such cooperative a
written notice, stating its non-compliance and the commensurate fines and penalties that will be imposed

ART. 54 Register of Members as Prima Facie Evidence. Any register or list of members shares kept by any registered
cooperative shall be prima facie evidence of the following particulars entered therein:
(1) The date on which the name of any person was entered in such register or list of member; and
(2) The date on which any such person ceased to be a member.

ART. 55 Probative Value of Certified Copies of Entries.

(1) Cooperative Business Entry Certification
• Entry in books, registers, or lists admissible as evidence.
• Certified according to evidence rules.
• Prima facie evidence of recorded matters and transactions
(2) Cooperative Books in Legal Proceedings
• Cooperatives cannot possess books in legal proceedings.
• Cooperatives must produce proven books and recorded accounts.
• Only by court order.

ART. 56 Bonding of Accountable Officers.

Cooperative Surety Bonds
• Directors, officers, and employees handling cooperative funds must be covered by a surety bond issued by a registered
insurance company.
• The board of directors determines the bond's adequacy.
• The Authority requires bonds from accountable officers upon cooperative registration.
• Bonds are manually renewed, with the Authority informed.

ART. 57 Preference of Claims.

(1). Cooperative Debt and First Lien
• Despite existing laws, debts from members constitute a first lien on raw materials, production, inputs, products, land,
buildings, facilities, equipment, goods, or services.
• This lien is valid until the loan or credit is fully paid.
(2) Cooperative's Lien Policy
• Property or interest subject to lien cannot be sold or conveyed without cooperative's permission.
• Lien continues after sale or conveyance until extinguished.
(3) Notwithstanding the provisions of any law to the contrary, any sale or conveyance made incontravention of paragraph (2)
hereof shall be void.

ART. 58 Instrument for Salary or Wage Deduction.

(1) Cooperative Member's Authorization
• Member can authorize employer to deduct salary, leave credits, and other monetary benefits.
• Employer can remit specified amount to satisfy debt or demand.
(2) Deduction Agreement with Cooperative
• Employer must make deductions in accordance with agreement.
• Deduction amount remitted within 10 days after payroll month end.

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• Deduction continues as long as debt or demand remains unpaid.
The term “employer” as used in this article shall include all private firms and the national and local governments and
government-owned or controlled corporations
• Employers are cooperative members.
• Agreement to carry out terms of instrument mentioned in paragraphs (1) and (2).
(4) The provisions of this article shall apply to all similar agreements referred to in paragraph (1) and were enforced prior to the
approval of this Code.
(5) Employer Responsibilities
• Mandatory despite existing laws.
• Private employers may deduct and remit actual and reasonable costs.

ART. 59 Primary Lien.

Notwithstanding the provision of any law with the contrary, a cooperative shall have primary lien upon the capital, deposits or
interest of a member for any debt due to the cooperative from such a member.

ART. 60 Tax Treatment of Cooperative.

Duly registered cooperatives under this Code which do not transact any business with non-members or the general public
shall not be subject to any taxes and fees imposed under the internal revenue laws and other tax laws. Cooperatives not falling
under this article shall be governed by the succeeding section.

ART. 61 Tax and Other Exemptions.

Cooperative Transactions with Non-Members
• Cooperatives dealing with both members and non-members are exempt from tax.
• Transactions with members are exempt from final taxes on deposits and documentary tax.
• Non-member cooperatives enjoy tax exemptions despite law or regulation provisions.

(1) Cooperative Exemptions

• Cooperatives with accumulated reserves and net savings of P10,000,000.00 are exempt from all taxes.
• Exemptions include customs duties, advance sales, and compensating taxes on importation of machineries, equipment, and
spare parts.
• Tax-free importations cannot be sold or transferred to anyone after five years.
• Transferees or assignees must pay twice the imposed tax and/or duties.
(2) Cooperatives with accumulated reserves and divided net savings of more than Ten million pesos (P10,000,000.00) shall pay
the following taxes at the full rate:
(a) Income Tax - On the amount allocated for interest on capitals
(b) Value-Added Tax Exemption for Cooperatives
• Cooperatives registered with the Authority are exempt from value-added tax on transactions with non-members.
• Exempt transactions include sales made by cooperatives organized and operated by members.
• Cooperatives can produce and process raw materials or goods into finished products for sale.
• Any processed product or derivative arising from raw materials sold in the cooperative's name.
• At least 25% of the cooperative's net income is returned to members as interest or patronage refunds.
(c) All other taxes unless otherwise provided herein; and
(d) Donations to charitable, research and educational institutions and reinvestment to socioeconomic projects within the area
of operation of the cooperative may be tax deductible.
(3) Cooperative Exemptions and Taxation
• All cooperatives, regardless of reserves and savings, are exempt from local and bank taxes.
• Non-member sales or services are subject to applicable taxes.
• Internal revenue officers can examine cooperative's accounts for internal revenue tax purposes after authorization by the
Authority.

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(4) In areas where there are no available notaries public, the judge shall render service, free of charge, to any person or group of
persons requiring the administration of oath or the acknowledgment of articles of cooperation and instruments of loan from
cooperatives not exceeding Five Hundred Thousand Pesos(P500,000.00).
(5) Any register of deeds shall accept for registration, free of charge, any instrument relative to a loan made under this Code
which does not R.A. 9520 39 exceed Two Hundred Fifty Thousand Pesos (P250,000.00) or the deeds of title of any property
acquired by the cooperative
(6) Cooperatives shall be exempt from the payment of all court and sheriff’s fees payable to the Philippine
(7) All cooperatives shall be exempt from putting up a bond for bringing an appeal against the decision of an inferior court or for
seeking to set aside any third party claim.
(8) Any security issued by cooperatives shall be exempt from the provisions of the Securities Act provided such security shall
not be speculative.

ART. 62 Privileges of Cooperatives.

Cooperatives registered under this Code, notwithstanding the provisions of any law to the contrary, be also accorded the
following privileges:
(1) Cooperatives shall enjoy the privilege of depositing their sealed cash boxes or containers, documents or any valuable
papers in the safes of the municipal or city treasurers and other government offices free of charge
(2) Cooperatives organized among government employees, shall enjoy the free use of any available space in their agency,
(3) Cooperatives rendering special types of services and facilities shall secure a franchise therefore, and such cooperatives
shall open their membership to all persons qualified in their areas of operation;
(4) In areas where appropriate cooperatives exist, the preferential right to supply government institutions and agencies rice,
corn and other grains, fish and other marine products, meat, eggs,milk, vegetables, tobacco and other agricultural
commodities
(5) Preferential treatment in the allocation of fertilizers, including seeds and other agricultural inputs and implements, and in
rice distribution shall be granted to cooperatives by the appropriate government agencies;
(6) Preferential and equitable treatment in the allocation or control of bottomries of commercial shipping vessels in connection
with the shipment of goods and products of cooperatives;
(7) Cooperatives and their federations, such as farm and fishery producers and suppliers, market vendors and such other
cooperatives, shall have preferential rights in the management of public markets and/or lease of public market facilities, stalls
or spaces
(8) Cooperatives engaged in credit services 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 Land Bank of the Philippines and other
financial institutions except the Bangko Sentral ng Pilipinas (BSP);
(9) A public transport service cooperative may be entitled to financing support for the acquisition and/or maintenance of land
and sea transport equipment, facilities and parts through the program of the government financial institutions
(10) Cooperatives transacting business with the Government of the Philippines or any of its political subdivisions or any of its
agencies or instrumentalities shall be exempt from prequalification bidding requirement notwithstanding the provisions of
Republic Act No.9184, otherwise known as, the Government Procurement Act;
(11) Cooperative shall enjoy the privilege of being represented by the provincial or city fiscal or the Office of the Solicitor
General, free of charge, except when the adverse party is the Republic of the Philippines;
(12) Cooperatives organized by faculty members and employees of educational institutions shall have the preferential right in
the management of the canteen and other services related to the operation of the educational institution where they are
employed
(13) The appropriate housing agencies and government financial institutions shall create a special window for financing
housing projects undertaken by cooperatives, with interest rates and terms equal to, or better than those given for socialized
housing projects.

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