Section 100March 10, 1990, Sec./Art. 100

Definition, Classification and Functions. - A cooperative bank is one organized by the majority shares of which is owned and controlled by cooperatives primarily to provide financial and credit services to cooperatives. The term "cooperative bank" shall include cooperative rural banks.

A cooperative bank may perform the following functions:

(1) To carry on banking and credit services for the cooperatives;

(2) To receive financial aid or loans from the Government and the Central Bank of the Philippines for and in behalf of the cooperative banks and primary cooperatives and their federations engaged in business and to supervise the lending and collection of loans;

(3) To mobilize savings of its members for the benefit of the cooperative movement;

(4) To act as a balancing medium for the surplus funds of cooperatives and their federations;

(5) To discount bills and promissory notes issued and drawn by cooperatives;

(6) To issue negotiable instruments to facilitate the activities of cooperatives;

(7) To issue debentures subject to the approval of and under conditions and guarantees to be prescribed by the Government;

(8) To borrow money from banks and other financial institutions within the limit to be prescribed by the Central Bank; and

(9) To carry out all other functions as may be prescribed by the Authority: Provided, That the performance of any banking function shall be subject to prior approval by the Central Bank of the Philippines.