Law Summary
Bond Requirement for Compliance
- The grantee must file a bond of ₱50,000 to guarantee compliance with franchise conditions.
- The bond will be cancelled by the government if all conditions are fulfilled within four years or as soon as these are met thereafter.
Equal Terms Clause
- Should another franchise or permit be granted with more favorable terms to a competing individual or entity, those favorable terms will automatically apply to the Chronicle Broadcasting Network's franchise as well, preventing disadvantage.
Tax Obligations
- The grantee is liable to pay taxes on real estate, buildings, and personal property, excluding the franchise itself, in the same manner as other persons or corporations.
- Additional taxes imposed by the National Internal Revenue Code by reason of this franchise must also be paid by the grantee.
Government Control During National Crises
- In times of war, rebellion, insurrection, or similar national crises, the government may take control and operate any station covered by this franchise.
- The grantee is required to turn over stations to the government upon payment of just and reasonable compensation.
Restrictions on Transfer and Assignment
- The grantee cannot lease, transfer, sell, assign, or grant usufruct of this franchise or its rights to any third party without prior approval of Congress.
- Any corporation acquiring the franchise through these means shall be subject to all the original terms, conditions, restrictions, and limitations of the franchise.
Title Amendment and Effectivity
- The official title of the Act is amended to reflect the granting of the franchise to the Chronicle Broadcasting Network.
- The Act takes effect immediately upon approval.
This law sets out the legal framework for the granting and regulation of the Chronicle Broadcasting Network's broadcasting franchise, ensuring public service, compliance with ethical standards, government oversight during emergencies, financial obligations, and protections against unfair competitive disadvantages.