REVISED RULES AND REGULATIONS IMPLEMENTING …

1 1 REVISED RULES AND REGULATIONS IMPLEMENTING certain AND special provisions OF THE PHILIPPINE COOPERATIVE CODE OF 2008 Pursuant to the provisions of Article 139 of Republic Act No. 9520, otherwise known as the Philippine Cooperative Code of 2008, the Cooperative Development Authority hereby issues the following RULES and REGULATIONS IMPLEMENTING the provisions of the said Code. Article RULES and REGULATIONS . The Authority shall issue RULES and REGULATIONS to implement those provisions of this Code which expressly call for the issuance thereof. This paragraph shall not apply to those cases wherein a specific provision of this Code expressly designates particular government agencies which shall issue the REGULATIONS called for by any provision of this Code.

2 TITLE AND DEFINITIONS Section 1. Title. These RULES shall be known as the REVISED RULES and REGULATIONS IMPLEMENTING certain and special provisions of the Philippine Cooperative Code of 2008. Section 2. Definition of Terms. For the purpose of these RULES and REGULATIONS , the following terms are defined, as follows: 1. Agrarian Reform Cooperative(ARCo) - refers to one organized by marginal farmers majority of which are Agrarian Reform Beneficiaries, duly registered with the Authority, for the purpose of developing an appropriate system of land tenure, land development, land consolidation or land management in areas covered by agrarian reform.

3 It shall also refer to Agrarian Reform Beneficiaries Cooperative (ARB Coop) as defined in DAR Administrative Order No. 05, Series of 2009. For purposes of this definition, the following terms shall mean: a. Agrarian Reform Area - refers to the area subject for coverage under the Comprehensive Agrarian Reform Program (CARP)/Comprehensive Agrarian Reform Program Extension with Reforms (CARPER). b. Agrarian Reform Beneficiaries (ARBs) - refers to qualified beneficiaries under the Comprehensive Agrarian Reform Program (CARP), as defined under Section 22, Chapter VII of 6657.

4 C. Agrarian Reform Community (ARC) - refers to a community composed and managed by ARBs who are willing to be organized and to undertake the integrated development of an area and/or their organizations or cooperatives as defined under RA 9700, otherwise known as the Comprehensive Agrarian Reform Program Extension with Reforms (CARPER) Act. 2 d. CLOA - refers to the Certificate of Land Ownership Award. e. DAR - refers to the Department of Agrarian Reform. f. Marginal Farmers - refers to farmers who are tilling an area of not more than three (3) hectares.

5 G. Next of Kin for purposes of ARB cooperative succession, refers to a natural person who is an heir of an agrarian reform beneficiary and who is qualified to be a member of the cooperative under its By-laws and as determined by DAR. 2. Alternative Dispute Resolution (ADR) - refers to a process or procedure used to resolve a dispute or controversy, other than by adjudication of a presiding Judge of Court or an officer of a government agency, in which a neutral third party participates to assist in the resolution of issues, which includes arbitration, mediation, conciliation, early neutral evaluation, mini trial, or a combination thereof.

6 For purposes of this definition, the following terms shall mean: a. Arbitrator - refers to the person appointed to render an Award, in a dispute that is the subject of an arbitration agreement. b. Award - refers to any partial or final decision by an Arbitrator in resolving the issues in a controversy. c. Conciliation - refers to the process whereby a neutral third party takes an active role in assisting disputants to formulate between and among themselves an acceptable solution to reach an amicable settlement. d. Dispute - refers to intra/inter cooperative controversy or grievance arising from any violation or disagreement over any provision of law, including violations of the rights and conditions of membership provided in the By-laws of the cooperative and/or in the Cooperative Code, which may be the subject of a formal or informal request for conciliation/mediation or arbitration assistance sought by either parties.

7 E. Mediation refers to the process wherein a mediator, selected by the disputing parties, facilitates communication and negotiation, and assists the parties in reaching a voluntary agreement relative to the dispute. f. Settlement - refers to any compromise or agreements reached between the disputants to settle the matters in dispute and thus dispose of controversy. g. Submission Agreement - refers to the written agreement signed by the disputing parties to submit the dispute to voluntary arbitration. h. Voluntary Arbitration- refers to a dispute resolution process wherein any intra/inter cooperative dispute is settled by a voluntary arbitrator/s chosen by the disputing parties or appointed by the Authority from a list of accredited arbitrators, who shall render an Award.

8 I. Voluntary Arbitrator/Arbitrators - refers to any accredited and authorized employee of the Authority or an accredited private 3 individual chosen by the parties or appointed by the Authority to hear, decide, and render an award in a dispute. 3. Area of Operation - refers to the area where the cooperative operates and where its members come from as provided for in their Articles of Cooperation and By-laws. 4. Articles of Cooperation - refers to the Articles of Cooperation of a registered cooperative, including registered amendments thereto, if any.

9 5. Associate Member - refers to a member of a cooperative who has no right to vote nor be voted upon and is entitled only to limited rights, privileges and membership duration as provided in the By-laws of the cooperative, the Philippine Cooperative Code of 2008, and its IMPLEMENTING RULES and Regulation. 6. Authority - refers to the Cooperative Development Authority (CDA). 7. Bond of Membership - refers to the conditions where members group themselves to attain their common goals and objectives which may either be residential, occupational, associational, or institutional.

10 8. By-Laws - refers to the By-laws of a registered cooperative which includes its registered amendments, if any. 9. Capital - refers to the totality of the members share capital, loans and borrowings including deposits, deferred payment of interest on share capital and patronage refund, subsidies, donations, legacies, grants, aids, lands, structures, plants, equipment, facilities, machines and other assets of the cooperative. For purposes of this definition, the following terms shall mean: a. Authorized Share Capital - refers to the capitalization of the cooperative as provided in the Articles of Cooperation and as approved by the Authority.