Section 23March 10, 1990, Sec./Art. 23

Types and Categories of Cooperatives. - (1) "Types of Cooperatives": Cooperatives may fall under any of the following types:

(a) "Credit Cooperative" is one which promotes thrift among its members and creates funds in order to grant loan for productive and provident purposes;

(b) "Consumers Cooperative" is one the primary purpose of which is to procure and distribute commodities to members and non-members;

(c) "Producers Cooperative" is one that undertakes joint product whether agricultural or industrial;

(d) "Marketing Cooperative" is one which engages in the supply of production inputs to members and markets their products;

(e) "Service Cooperative" is one which engages in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication and other services; and

(f) "Multipurpose Cooperative" is one which combines (2) or more of the business activities of these different types of cooperatives.

(2) "Categories of Cooperatives": Cooperatives shall be categorized according to membership and territorial considerations as follows:

(a) In terms of membership, cooperative shall be categorized into:

(i) Primary: The members of which are natural persons;

(ii) Secondary: The members of which are primaries; and

(iii) Tertiary: The members of which are secondaries upward to one (1) or more apex organizations.

Those cooperative the members of which are cooperatives shall be known as federations or unions, as the case may be; and

(b) In terms of territory, cooperatives shall be categorized according to areas of operations which may or may not coincide with the political subdivisions of the country.