Section 13Sec./Art. 13

A new section, to be designated as Section 32-A, of Presidential Decree No. 269, as amended, is hereby inserted to read as follows:

"SEC. 32-A. Incentives of Electric Cooperatives. Consistent with the declared policy of this Act, electric cooperatives which comply with the financial and operational standards set by the NEA shall enjoy the following incentives:

"(a) To be entitled to congressional allocations, grants, subsidies and other financial assistance for rural electrification;

"(b) To receive all subsidies, grants and other assistance which shall form part of the donated capital and funds of the electric cooperatives, and as such, it shall not be sold, traded nor divided into share holdings at any time. These donated capital and funds shall be appraised and valued for the sole purpose of determining the equity participation of the members: Provided, That in case of dissolution or conversion of the electric cooperative, said donated capital and funds shall be subject to escheat; and

"(c) To avail of the preferential rights granted to cooperatives under Republic Act No. 7160, otherwise known as the Local Government Code of 1991′, and other related laws.

"As a further incentive, the NEA may prioritize the grant of incentives in favor of electric cooperatives that are managed effectively and efficiently and comply consistently with its mandates and directives."

CHAPTER IV

FINAL PROVISIONS