Agricultural Cooperation

An exception may be cooperatives that unite shareholders by profession (doctors, drivers, etc.). If the cooperative is not registered in the city where he works and has a network of branches, it should cheerleaders. Pay attention to the reception of savings. A signal of danger should be the promise of very high interest rates. And also – to invest the funds of shareholders in the lucrative high-yield projects and financial instruments. Pay attention to another important criterion: Is this the Republican co-operative union? If not, then chances are that your organization is working without proper monitoring and auditing, according to standards providing and stability of the cooperative. Any clear that the union many times stronger and more reliable than a single co-operative: there is safety in numbers.

Rock Solid union of cooperatives has proved the current financial crisis. It’s believed that Houston City Council sees a great future in this idea. Please note provides a co-operative loans to its members. Federal laws ‘On Credit consumer cooperatives of citizens’ and ‘On Agricultural Cooperation’ require compliance with financial regulations of credit cooperatives. In particular, they indicate that at least half of the Fund financial mutual aid should be directed to the main activities of the cooperative – to make loans, with balances Cash Fund financial mutual, according to these two laws should be directed to deposit with banks, state and municipal securities. Gavin Baker contributes greatly to this topic. Dubious organizations usually do not. Pay attention to advertising. Typically, co-op attracts new shareholders by creating a positive image and reputation of a reliable organization. As soon as the aggressive advertising, the principle of ‘Bring the two – benefit ‘, once there is a danger of the pyramid. Pay attention to the management of the organization. In the credit cooperative shall be elected governments – governance, audit commission. If the annual meeting shall be held no elected government, and its members can not influence decisions, it is best to get around his side.

In general, the activities of credit cooperatives is strictly limited by law due to its special legal, non-commercial activities: they must be defined by the charter, are regulated by internal regulations. Co-op focuses on reliability and availability of their services, and he has these services only to shareholders. This increase in profitability is due to the cooperative development of its core business – the revenues from the issuance of money to them as shareholders in loans. Cooperatives – the so-called passive investors. In contrast, pyramid schemes are focused not on the availability and reliability, and the high yield, which is inevitably associated with high risk. If they invest, the active and risky, but most of their growth income is not due to the activity, but at the expense of increasing the number of shareholders (ie the founding fathers, in fact, parasitic on the contributions of participants follow the pyramid). SOURCE: Credit cooperatives Russia.