Loan Management System

5615 Words Mar 4th, 2011 23 Pages
Chapter I
Project Initiative : Loan Management System
Cooperatives are obligated to adhere to the Republic Act No. 9520 or the Philippine Cooperative Code of 2008. The law was signed into law last February 17, 2009. The new law amending RA 6938 was passed to meet the challenges of the global economic situation and the advent of the age of information technology. Moreover, the new cooperative code is expected to strengthen the thousands of cooperatives in the country and enable the system to contribute better to the country’s economic growth. It is the declared policy of the State to foster the creation and growth of cooperatives as a practical vehicle for promoting self-reliance and harnessing people power towards
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Cooperatives at other levels are organized in the same democratic manner. "(3) Member Economic Participation - Members contribute equitably to, and democratically control, the capital of their cooperatives. At least part of that capital is the common property of the cooperative. They shall receive limited compensation or limited interest, if any, on capital subscribed and paid as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing the cooperative by setting up reserves, part of which should at least be indivisible; benefitting members in proportion to their patronage of the cooperative's business; and, supporting other activities approved by the membership. "(4) Autonomy and Independence - Cooperatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including government, or raise capital from external sources, they shall do so on terms that ensure democratic control of their members and maintain their cooperative autonomy. "(5) Education, Training and Information - Cooperatives shall provide education and training for their members, elected and appointed representatives, managers, and employees, so that they can contribute effectively and efficiently to the development of their cooperatives. "(6) Cooperation Among Cooperatives - Cooperatives serve their members most effectively and strengthen the