Question & AnswerQ&A (LTFRB MEMORANDUM CIRCULAR NO. 96-015)
The Deed of Sale must be duly notarized and form part of the evidences for the petition for sale and transfer of the CPC.
The validity of the franchise, which is the subject of sale and transfer, must still be subsisting.
No, fractional sale of franchises is not allowed; the sale must cover all the units specified under the franchise.
All the authorized units under the CPC sought to be transferred should be properly registered with the Land Transportation Office (LTO) for the year preceding the date of transaction.
No, there should be no outstanding obligations, including fines and penalties, attached to the franchise for sale.
The application must attach: 1) Duplicate notarized Deed of Sale, 2) Copy of CPC/decision in the name of seller with expiry date, 3) Certification from LTO that all units are registered for the year preceding the sale, 4) Certification from Technical Evaluation Division that the seller has no outstanding obligations.
The sale of franchise may disqualify the original grantee from future holding of a franchise.
No, no application or petition for approval by the Board will be accepted for filing and hearing unless the required annexed documents are attached.
It took effect fifteen (15) days after filing of three (3) copies with the U.P. Law Center, pursuant to Presidential Memorandum Circular No. 11, dated October 9, 1992.
The certification from TED confirms that the CPC holder selling or transferring the franchise has no outstanding obligations with the Board under his/her/its franchise.