Section 15February 17, 2009, Sec./Art. 15

Articles 115, 116, 117 and 118 of Chapter XV on Special Provisions relating to Cooperative Insurance Societies of the same Code are hereby transferred to another chapter. Chapter XV as amended shall now read, as follows:

CHAPTER XV

CREDIT COOPERATIVES

"ART. 114. Coverage. This Chapter shall apply to credit cooperatives and other cooperatives, including multipurpose cooperatives, that provide savings and credit to their members only. The rest of the provisions of this Code shall apply to them insofar as the same are not inconsistent with the provisions of this Chapter.

"ART. 115. Definition and Objectives. A credit cooperative is a financial organization owned and operated by its members with the following objectives:

"(1) To encourage savings among its members;

"(2) To create a pool of such savings for which loans for productive or provident purpose may be granted to its members; and

"(3) To provide related services to enable its members to maximize the benefit from such loans.

"ART. 116. Organization and Registration.- Credit cooperatives shall be organized and registered in accordance with the general provisions of this Code.

"ART. 117. Organizational Linkage. Credit cooperatives may organize chapters or subsidiaries, or join leagues and federations for the purpose of providing commonly needed essential services including but not limited to the following:

"(1) Interlending of surplus fund;"(2) Mutual benefits;"(3) Deposit guarantee;"(4) Bonding;"(5) Education and training;"(6) Professional and technical assistance;"(7) Research and development;"(8) Representation; and "(9) Other services needed to improve their performance.

"Existing support organizations such as federations of credit cooperatives, credit cooperatives at the provincial, regional and national levels may continue as such under this Code."