Law Summary
Restrictions on Transfer and Assignment of Franchise
- The grantee, Iligan Light and Power, Inc., is prohibited from leasing, transferring, granting usufruct, selling, or assigning the franchise or its rights and privileges to any other entity.
- This restriction applies to any person, firm, company, corporation, or other commercial or legal entity.
- The grantee is also barred from merging with any other entity organized for the same purpose without explicit approval or consent from the Congress of the Philippines.
Effectivity of the Act
- The law takes effect immediately upon its approval.
- Notably, it lapsed into law on September 4, 1995, due to the absence of the President's signature, as allowed under Section 27(1), Article VI of the Philippine Constitution.
- This mechanism allows the law to become effective despite no formal signing by the President within the prescribed period.