General Policies

General Policies


The purpose of this policy is to emphasize PFCCO and REGIONAL LEAGUE legal identity as a tertiary and secondary financial intermediary. The policy sets the basic framework for the organization’s culture that serves as basis of carrying out business operation and professional attitude of its leaders and staff.


1.1. The PFCCO shall carry out its operation based on the following governing rules and regulations:

  • By Laws
  • Chapter Governing Rules
  • Operational Policies and procedures as contained in this manual
  • Policies and regulation of PFCCO national related to cooperatives development in the country.
  • The Cooperative Code of the Philippines laws promulgated.

1.2. Nothing included in this policy manual is to be in conflict within Cooperative Code of the Philippines, Implementing Rules, By – Laws and regulation as identified above.

1.3. PFCCO shall exercise all powers as provided in Cooperative Code of the Philippines, Laws, By-laws and policies for purpose of carrying out its objectives. 2. CAPACITIES AND POWERS

2.1. PFCCO has the capacity to carry its business and exercise its powers within the common bond.

2.2. Subject to the Cooperative Code R.A. 6938 R.A. 6939 and its regulations, PFCCO may engage in and carry on any business that pertains to the business of credit union and without limiting the generality of the foregoing may;

  • Receive various types of deposits from cooperative members
  • Grant loans to its cooperative members only
  • Not carry out any business that is contrary or restricted by the Cooperative Code of the Philippines, its regulations.

3. CREDIT UNIONS RECORDS 3.1. PFCCO shall maintain in its registered office the following records:

3.1.1. By-Laws and its amendments and Policies

3.1.2. Minutes of Meetings and Resolutions of General Assembly, Board of Directors, regular Committees and other committees

3.1.3. Resume/Curriculum Vitae of the Board of Directors and Management Staff

3.1.4. Original Copy of the Certificate of Registration with the Cooperative Development Authority and its affiliation with PFCCO National

3.1.5. A copy of the Cooperative Code of the Philippines and every order issued by the Cooperative Development Authority or of a court relating to

3.1.6. A copy of every notice sent to members pursuant to the Cooperative Code.

3.1.7. In addition to the record described above, the following records should be maintained by the League:

  1. Adequate accounting records regarding deposits, shares, loan accounts, investments in securities and bonds, promissory notes, fixed assets, earnings, expenses and other records related to the financial operation of the credit union.
  2. Stock and Transfer Book (Share Capital Ledger)
  3. Documentation in connection with individual membership such as Approved Application for Membership, Copy of Certificate Share Capital, Loan application and Approval and all other important information related to their membership.
  4. Members Register Book indicating the date of membership, and address known to the cooperative members;


4.1. Any member may examine the records relating to his/her own membership and financial affairs during the usual business hours of the credit union and take extracts from those records with minimum charge.

4.2. A member is entitled to get one copy of the by laws at the time of membership.

4.3. Every member is entitled to obtain a statement/passbook/deposit certificate immediately after his/her transaction with the credit union.

4.4. PFCCO should give access to records to:

  • The Internal and External auditor.
  • The CDA or any person appointed by the CDA.
  • Any Officer or employee so appointed by the National federation.

4.5. Subject to the Cooperative Code or By Laws, the Board may refuse to release register of cooperative members for any reason that it considers inappropriate.

4.6. Records of cooperative members’ financial transactions with the League shall be kept confidential and shall not be divulge to outsiders without prior approval of the Manager or Board. 5. COOPERATIVE IMAGE

5.1. Non-discrimination: The League will not discriminate any individual in its membership, or the general public, on the basis of age, gender, marital status, race, ancestry, place of origin, cast, religion, political persuasion, physical capabilities as a reason for denying or restricting its services.

5.2. Special Interest Group: The League may not provide organization’s support to any special interest group.

5.3. Third Parties: The League will not take rides in any issue between its members and third parties except a direct relationship to its operating concerns.

5.4. Display Advertising: The League may display posters, leaflets, notices and advertisements for local charitable, sports or recreational activities on its premises where it considers such notices to be in the overall public interest. 6. ETHICAL PROFESSIONAL CONDUCTS

6.1. The officials (elected or appointed directors and committee members) and its management staff shall fulfill its responsibilities and render services in a manner to promote the favorable image the organization and not for own benefit. The officials and staff of the PFCCO shall avoid potential conflicts of interest and personal gains.

6.2. PFCCO will promote and protect the integrity and reputation of those responsible with the administration and operation of all the affairs of the organization.

6.3. Elected/appointed officers and staff of the League should at all times accept responsibility and accountability for decisions, for the foreseeable consequences of actions and inaction, and for setting an example to members. PFCCO will ensure that appropriate mechanisms are adopted within the organization to establish delineation of responsibility and accountability.

6.4. Elected/appointed officers and staff of the League should be worthy of trust, keep promises, fulfill commitments, and abide by the spirit as well as the letter of agreement.

6.5. Nepotism: No relative of Board/Committees or an employee is hired as favoritism or partiality in decision-making.

6.6. Preferential Financial Practices:

6.6.1. No official or employee or relatives of officials or employees shall be granted preferential services of the credit union at more favorable consideration in respect to security, maturity and interest requirements.

6.6.2. No official or employee shall direct the allocation of credit union funds, purchase, invest, contracts or whatever, to second parties with the direct or indirect objective of obtaining preferred personal, financial or other considerations in return for such direction of business.

6.6.3. No official or employee shall enter into a contract on behalf of the organization; unless the transaction is approved by the board of directors, appropriate invoices and the transaction is legally binding and is not in conflict with the standards of professional conducts.

6.6.4. Conflict of Interest: Conflicts of interest, breach of loyalty and good faith wherein an official or employee gains or may gain personally either at the expense of the credit union or by virtue of misuse of the credit union’s position.

6.6.5. Confidentiality: All directors, Audit Committee members, other Sub-Committee members and staff shall sign a confidentiality agreement as out lined in Appendix_____. Failure to comply with this policy may result in the immediate dismissal of said official or employee or such other remedy as approved by the board. The disclosure statements shall be submitted as follows:

(Confidentiality agreement to be followed)

  1. Staff should submit their disclosure to the manager
  2. The manager and elected officials should submit their disclosures to the League Chairperson.
  3. The Chairperson should submit his/her disclosure to the Board meeting.

6.6.6. Questionable Practices and Procedures: The following activities are identified as an illegal or not in keeping with sound business and financial practices, questionable as to ethical procedures and are prohibited. Directors, Sub-committee members or employee will be suspended and later discharged if the individual is proven guilty of any of the following or responsible for some.

  1. Falsifying information to obtain position, compensation or for other purpose.
  2. Dishonesty, fraud or embezzlement
  3. Thefts of credit union property, equipment or the personal property of fellow employees.
  4. Consuming an intoxicating drug/alcohol or being intoxicated by drugs/alcohol while conducting credit union business.
  5. Willful disobedience of instructions or directives issued by Board or Audit Committee.
  6. Using profane or abusive language.
  7. Willful neglect of duties.
  8. Acts of lasciviousness
  9. Willful damaging credit union property or equipment.
  10. Conducting personal financial transactions with a member (the borrower or lending of money not at arms length) as a result of information gained from the directors, sub-committee members or staff position with the League.
  11. Directors, committee members and other officers will be suspended from their duties if their loans are delinquent for more than 90 days.


7.1. No directors, sub-committee members or staff members shall be liable for any loss or misfortune which may occur in the execution of the duties of his/her respective office, unless such loss shall occur through his/her failure to exercise the power, and to discharge the duties of his/her office honesty, in good faith and in best interest of the credit union in accordance with the degree of care, diligence and skill expected.

7.2. PFCCO will only reimburse such an individual for all such specific losses as incurred under the circumstances as described in (i) above.

7.3. PFCCO will reimburse such an individual for all legal expenses incurred in such action as described above. 8. INFORMATION AND IMPLEMENTATION The Board and staff shall be oriented on this policy once a year. The Board shall determine the date. Violation of any provisions in this policy is a ground for suspension or termination.


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