Standards for Apparatus and Appurtenances
- All equipment used must be modern, safe, and of first-class quality.
- Subject to change or alteration at the corporation's expense if deemed necessary by public interest authorities.
Hold Harmless Clause
- The corporation shall indemnify and hold the national and municipal governments harmless from any claims or damages arising from accidents related to construction or operation.
Presidential Authority on Construction
- The President of the Philippines has authority to permit construction on navigable waters.
- The President may impose terms and conditions for such permissions.
Restrictions on Transfer or Assignment
- The franchise cannot be leased, transferred, assigned, sold or merged without Congressional approval.
- Any transferee or assignee is subject to existing franchise conditions and Philippine corporate laws.
Compliance with Philippine Corporate Laws
- The grantee and its successors or assigns must comply with all applicable corporate legislation.
Taxation
- The corporation is liable to pay taxes on real estate, buildings, and personal property, similar to other persons or corporations.
- The franchise itself is exempt from these taxes.
Suppletory Application of Tariff and Customs Code
- Title V, Book II of the Tariff and Customs Code applies supplementarily where not inconsistent with this Act.
Congressional Powers over the Franchise
- Congress reserves the right to amend, alter, or repeal the franchise in the interest of the public.
Effectivity
- The Act takes effect upon approval, officially commencing the franchise and related obligations.