Law Summary
Definitions of Key Terms
- Registration Fee: Fee prescribed by the Cooperative Development Authority (CDA).
- Full Payment: Complete payment equivalent to the prescribed fee, payable in cash, manager's check, or other acceptable forms.
- Non-Negotiability: Condition where a post-dated check is refused payment by the bank.
- Post-Dated Check: Check made payable on a future specified date.
- Payment by Installment: Division of the assessed registration fee into installments payable on different dates as stipulated.
- Registration May be Nullified: Situation where installment payment modes are deemed void ab initio except for amounts already paid which are forfeited to the government.
Modes of Payment
- Two modes recognized:
- Full Payment.
- Payment by Installment.
- For installment payment, cooperatives must submit a Board of Directors Resolution requesting approval, stating:
- Valid reason for inability to pay full amount.
- Assessed amount required.
- Schedule and mode of payment per Section 4.
Payment Amounts and Schedule
- For assessed fees of ₱100,000 and below: full payment is required upon registration.
- For higher amounts, payments are spread over months as follows:
- ₱100,000.01 to ₱200,000: payable within 3 months.
- ₱200,000.01 to ₱300,000: payable within 6 months.
- ₱300,000.01 to ₱499,999: payable within 9 months.
- ₱500,000.01 and above: payable within 12 months.
Approval of Installment Payments
- Installment payments must be supported by post-dated checks divided equally monthly or quarterly.
- Approval authority:
- Executive Director for Central Office jurisdiction.
- Regional Director for Extension Office jurisdiction.
- First payment must be made via cash or check upon or before issuance of the Certificate of Registration or amendments.
- All payments must be made directly to the cashier with a corresponding Order of Payment.
Monitoring and Safekeeping of Post-Dated Checks
- The CDA Cashier is custodian of all post-dated checks.
- Responsible for monitoring negotiability.
- Upon negotiability, coordination with Registration Division/Unit occurs for issuance of Order of Payment.
Consequences of Dishonor of Post-Dated Checks
- Dishonored (non-negotiable) post-dated check results in:
- Waiver of cooperative's rights over amounts already paid.
- Certificate of Registration/amendments considered void ab initio.
- Cooperative will be informed within 5 banking days to arrange payment.
- Failure to pay may lead to nullification of registration and issuance of Order nullifying the Certificate of Registration.
- This is without prejudice to:
- Filing of appropriate cases under Batas Pambansa 22.
- Sanctions under Article 140 of RA 9520 for acts/omissions.
Effectivity
- Guidelines are effective upon:
- Approval by the Board of Administrators.
- Fifteen (15) days after registration with the Office of the National Administrative Register (ONAR).