Whereas, under and by virtue of Commonwealth Act Numbered Five hundred and sixty-five, entitled œAn Act providing for the organization of cooperative associations, authorizing the creation of an agency or designation of an instrumentality of the Government to promote and supervise the said associations, and providing funds for the promotion and supervision of the same,  it is provided, among other things, that:

œSEC. 5. The President of the Philippines may, by executive order, consolidate in any Government agency now existing all Government activities relating to the promotion, organization, and supervision of cooperative or mutual aid associations or he may create a new agency for such purpose, transferring to the same the personnel, equipment, supplies, records, and unexpended balances of appropriations employed in said activities.

œSEC. 6. The President may issue such rules and regulations as may be necessary to promote and help the organization of cooperative associations under this Act as well as those necessary and convenient to carry into effect the objectives hereof.

œSEC. 7. The President of the Philippines is authorized to set aside a portion of the fund appropriated under Commonwealth Act Numbered Four hundred and ninety-eight for the proper carrying out of the purposes of this Act. The sum thus set aside, together with the Agricultural Cooperative Fund created under Commonwealth Act Numbered One hundred and sixteen and with the available appropriations transferred to the agency in charge of the administration of this Act, shall constitute a special fund to be known as the National Cooperative Fund and shall be disbursed upon direction of the head thereof, subject to the provisions of section seven-I-(4) of Commonwealth Act Numbered Two hundred and forty-six. AH income or receipts derived from the operation of the special fund herein created shall accrue to and form part of the same and shall be available for expenditure and/or investment for the same purposes for which it has been created ; and

Whereas, in order to enable the President of the Philippines to effectively carry out the purposes of the said Act in the promotion, organization; and supervision of cooperative or mutual aid associations, it is deemed expedient and necessary that an agency be organized to enforce the rules and regulations issued by the President in conformity with section six of said Act;

Now, therefore, I, Manuel L. Quezon, President of the Philippines, by virtue of the powers conferred upon me by the above-mentioned Act, hereby order that an agency, to wit, a non-stock corporation be organized under the laws of the Philippines, said corporation to be named National Cooperatives Administration.

The governing body of the .said corporation, shall consist of a board of governors composed of a chairman and such members as the President of the Philippines may, from time to time, appoint. The board of governors shall, with the approval of the President, appoint such personnel as may be necessary for the proper performance of the functions of the corporation and fix their salaries.

The office and principal place of operation of said non-stock corporation shall be in the City of Manila, and branch offices shall be established in such places as may be selected and determined by the board of governors of the National Cooperatives Administration.

The National Cooperatives Administration shall exercise the powers and duties contained in the articles of incorporation and by-laws to be approved by the President of the Philippines and the rules and regulations that may be issued by the President from time to time in conformity with the provisions of section six of Commonwealth Act Numbered Five hundred and sixty-five.

The National Cooperatives Administration shall, in addition to its functions, act as registrar of cooperatives.

Pursuant to the provisions of section seven of Commonwealth Act Numbered Five hundred and sixty-five, an additional sum of one million pesos out of the fund appropriated by Commonwealth Act Numbered Four hundred and ninety-eight, is hereby released to, and made available for expenditure by, the National Cooperatives Administration for the purpose of carrying out its functions and activities. This sum, together with the unexpended balances of the appropriations for the promotion, organization, and supervision of cooperative associations transferred by this Order from the National Trading Corporation, shall hereafter be known as the National Cooperative Fund and shall be available for expenditure by the National Cooperatives Administration for the purposes for which this corporation is created, subject to the provisions of section seven-I-(4) of Commonwealth Act Numbered Two hundred and forty-six.

The Auditor General is hereby authorized and directed to transfer immediately to the National Cooperatives Administration the additional sum of one million pesos authorized by section five of Commonwealth Act Numbered Four hundred and ninety-eight.

All the powers, duties, and functions of the National, Trading Corporation relating to the promotion, organization, and supervision of cooperative or mutual aid associations by virtue of Executive Order Numbered Two hundred and ninety-seven, dated August twelfth, nineteen hundred and forty, and Executive Order Numbered Three hundred and twenty-two, dated February fifth, nineteen hundred and forty-one, together with the corresponding personnel, equipment, supplies, records, and unexpended balances of appropriations, are hereby transferred to the National Cooperatives Administration.

The National Cooperatives Administration is hereby authorized to call upon any Department, Bureau, office, agency, or instrumentality of the Government for such information and assistance as may be necessary.

The National Cooperatives Administration shall render to the President, from time to time, a report of its work and activities, together with such recommendation as it may deem necessary to make.

Whenever the words œNational Trading Corporation  are mentioned in Executive Order Numbered Three hundred and twenty-two, dated February fifth, nineteen hundred and forty-one, the same shall be understood as referring to the National Cooperatives Administration.

Executive Order Numbered Two hundred and ninety-seven dated August twelfth, nineteen hundred and forty, and all other executive or administrative orders, rules, and regulations or parts thereof inconsistent with the provisions of this Order are hereby revoked.

Done at the City of Manila, this fifth day of August, in the year of our Lord, nineteen hundred and forty-one, and of the Commonwealth of the Philippines, the sixth.


By the President:

(Sgd.) JORGE B. VARGAS
Secretary to the President