When we make a loan in a bank, it is clear where the money comes from coming from, on what its profit is based, why the interest rate is needed and so on.
But few people know about the PDA, for which they are created, who has the right to use cash, and what is needed for entry into the cooperative. We will tell about this today in our article.
Credit Consumer Cooperative is an association, the purpose of which is mutual assistance with finance. Those who are in the cooperative are called shareholders. It can be both legal entities and physical. Each of them is obliged to contribute to the fund they organize.
Participants in the credit consumer cooperative have the right not only to make money in the «Common Boiler», but also take loans. Unlike the Bank, the PDA can apply for financial assistance only those who are its participants.
The PDA allows shareholders to keep money on the type of deposit, with a percentage accrual, which is even more profitable than in banks. But also to give the borrowed funds, too, with a percentage, which is usually higher than the lender.
Credit Consumer Cooperative issues loans as personal shareholders and development and business promotion.
A guidance on the activities of the credit consumer cooperative assumes the Board of the CCP, which is chosen by the shareholders for a period of no more than 5 years. And all the questions about the work of the CCP are solved at the General Meeting. If the meetings do not require a larger number, then such a meeting is held once a year. All important aspects of the work, including the validity of the selected rule, are written in the Charter of the Organization.
In the event of the liquidation of the CCP, the deposits of shareholders will not be insured by the state, as if they were open in banks, since the PDAs do not fall under the mechanism for the protection of cash by the state. Deposit Insurance Agency in this case does not bear any responsibility, and it is not obliged to return to the funds to shareholders.
Certainly credit consumer cooperatives cannot exist on themselves without control over. So the Central Bank of the Russian Federation leads the register of cooperatives.
In addition, the Central Bank has the right to liquidate the PDA or suspend its work due to violations of the law, namely the Federal Law N 190 of July 18, 2009, which consolidates all provisions relating to the creation, features of activity, association and elimination of the CCP.
Also, the central bank obliges the PDA to create a reserve fund, which should always be cash. The size of the Foundation depends on the number of shareholders and constitutes a certain percentage of the total amount of funds raised. For example, if in the credit consumer cooperative less than 200 participants, then the amount of the reserve fund should be 2%.
In summing up we want to add that the shareholders are not only depositors and borrowers in the PDA, they are also its owners, so if at the end of the year, the credit consumer cooperative goes into minus, to enter the positive balance of shareholders should be on their own.