Studied by 2 people
Excerpts from the Rules and Regulation Implementing Certain Provisions of the Philippine Cooperative Code Of 2008 (RA No. 9520)
Rule 12 Financial Service Cooperative (FSC)
Sec. 2. Definition of FSC
financial organization owned & operated by its members & authorized to provide services exclusively to its members
Sec. 4. 1 Registration
FSC’s Articles of Cooperation and By-laws shall be registered w/ authority if accompanied by a Certificate of Authority issued by BSP (official seal)
Sec. 6. Minimum Capitalization Requirements
Minimum Paid-up capital: P10M
Sec. 2. 1 Functions of FSC
functions of credit cooperatives and other cooperatives (inc. multipurpose cooperatives) that provide savings and credit to their member
Sec. 2. 2 Functions of FSC
other financial services subject to regulation by the BSP
Sec. 4. 2 Registration
Register its amended Articles of Cooperation and By-laws to the authority upon approval of the authority and favorable certification of the BSP
Register and approved its Article of Cooperative and By-laws to the authority and favorable certification of BSP
When existing cooperative engaged in credit and multi-purpose activities notified the Authority after deciding to exercise enhanced functions and satisfied requirements for conversion to FSC
P10M
This qualifies cooperatives to register FSC w/o prejudice to add. capital req. that maybe prescribed by BSP for particular FS regulated by BSP that will be offered by FSC
Sec. 9. Membership and Affiliation
First Member
Regular members - natural persons
Sec. 9. Membership and Affiliation
Second Member
Associate members - natural persons but not immediately qualify under req. for membership in By-laws of Cooperative. They may open accounts, deposit funds, and withdraw (subject to By-laws and rules of the cooperative and the rules and regulations of the Authority)
1st Associate Qualification
2 yrs as regular members - Failure to convert means automatic withdrawal of associate membership but can re-apply as regular members after 2 yrs
1st Associate Qualification
Minors/dependents of regular members - qualify as associate members, when reach the age of majority and within 2 yrs from acceptance of their associate membership, they’ll have option to turn as regular members
Sec. 15. 1 Deposit and Borrowing Operations
Savings and Time Deposits - open with a min. amount to be determined by the BOD
Sec. 15. 2 Deposit and Borrowing Operations
Savings and Time Deposit - only members & affiliate laboratory cooperative
Sec. 15. Deposit and Borrowing Operations
FSC, through BOD as authorized by the General Assembly, may borrow from any source at the best terms or conditions available and any amount that needed
Sec. 16. Reserve Requirements against Deposit Liabilities
FSC shall maintain a Liquidity Reserve Fund of at least 2% of their savings and time deposit liabilities.
Sec. 17. 1 Loans
BOD shall be responsible for setting loan policies and lending procedures
Sec. 17. 2 Loans
BOD shall comply w/ provisions of RA 3765/ Truth in Lending Act
Sec. 17. 3 Loans
BOD shall make true & effective cost of borrowing as integral part of every loan contract
Sec. 18. Investment Program
The sole responsibility and accountability of BOD is the Sound Investment Program.
Sec. 18. Investment Program - Scope
Scope: Depend largely on FSC size and extent of its surplus funds
Sec. 18. Investment Program - Policies
Investment policies should be in writing and should address the safety, liquidity and yield, diversification, delegation of authority, and valuation/assessment of securities
Sec. 18. Investment Program - Percentage
FSC shan’t invest in any single entity more than 20% of its net worth
Sec. 23. Prohibition
Terms shall be used exclusively by duly registered under the Code. No person, group, or organization used these unless duly registered with Authority. If violated, they’re punishable by Art. 140 of the Code
Sec. 23. Prohibition Terms
Credit Cooperatives
Financial Service Cooperative
Financial Service Cooperative Federation
Note
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