Advertisement and Bidding Procedures
- The Governor-General must advertise the sale and lease publicly twice a week for one month.
- Advertisements must appear in at least three representative journals in the United States and two newspapers in the Philippines (one in English, one in Spanish).
- The advertisement will specify the terms and conditions, and the deadline for submission of sealed bids.
- Bidders must submit a certified check amounting to five percent of the bid as security.
- The Governor-General reserves the right to reject any or all bids.
Payment Terms for Purchase
- At least one-third of the purchase price must be paid in cash within thirty days after acceptance of the bid.
- Before the conveyance, the purchaser must enter into a contract to pay the remaining balance in up to two equal annual installments with six percent interest.
- The purchaser must sign and deliver a mortgage to secure payment of the remaining balance.
- Failure to comply authorizes the Governor-General to readvertise or accept other offers.
Leasing Alternative if No Sale
- If no satisfactory purchase offer is received, the Governor-General may lease the plant and land for up to twenty years.
- Similar advertising procedures apply for the lease.
- The lease requires lessee to maintain the plant in good condition and to provide a performance bond.
- The Governor-General may simultaneously invite bids for both sale and lease and accept the more advantageous offer.
Assumption of Existing Contracts by Buyer or Lessee
- The buyer or lessee must assume existing government contracts related to ice, water, storage, and other services.
- They are subrogated to all rights, liabilities, and obligations under these contracts.
- Renewal of such contracts is at the discretion of the other contracting parties for up to two years.
Government's Reserved Rights for Inspection and Sanitary Control
- Government officials may enter the plant at any time for inspection.
- The plant must be kept clean and sanitary, with proper precautions for ice and water manufacturing and food storage.
- Government may impose reasonable rules concerning sanitary operations, product purity, and delivery vehicle cleanliness.
- Officials may order destruction of deleterious or unwholesome substances or ensure proper disposal at the owner's expense.
Control over Rates, Accounts, and Storage Terms
- Government officials have the right to access books and accounts of the owner or lessee.
- Authority to fix minimum storage space, maximum rates for storage, ice, water, and other products.
- Owners or lessees must charge uniform rates under uniform conditions.
Applicability of Conditions and Ongoing Government Supervision
- The conditions of assumption of contracts and government control attach to the plant and follow all subsequent owners or lessees.
- The plant remains subject to supervision as a quasi-public business affecting public health and competition.
Property Description, Appraisal, and Inventory Prior to Sale or Lease
- Boundaries of the property must be accurately ascertained before sale or lease.
- An appointed three-person committee must appraise the property, buildings, and appurtenances.
- Appraisal and net annual profits guide pricing for sale or lease.
- A detailed inventory and schedule of included property and equipment must be made and attached to the contract.
- Substitute property or equipment during lease must be inventoried; lessees must pay for any lacking value at lease expiration.
Conveyance and Vesting of Title
- Conveyance documents must affirm fulfillment of all conditions.
- Execution and delivery of conveyance vest the Government's rights, title, and interest in the plant to the purchaser.
- Items excluding property, vehicles, and equipment not included in the contract remain Government property.
- Governor-General may arrange completion terms for ongoing repairs and machinery installation.
Disposition of Proceeds
- All money received from sale or lease must be deposited in the Insular Treasury.
- These funds form part of the general government funds and are disbursed only through legislative Acts.
Effectivity
- The Act takes effect immediately upon its passage.