Franchise grant for Golden Broadcast in Mindanao

Section 3 reserves to the President of the Philippines the special right, in times of war, rebellion, public peril, calamity, emergency, disaster, or disturbance of peace and order, to take over and operate the station or authorize temporary use and operation by any department of the government.
Section 3 requires due compensation to the grantee for the use of the station during the period of such presidential or government operation.
Section 4 empowers the President to permit construction of the station on such terms and conditions as the President may prescribe.

Section 7(a) provides that the franchise shall not take effect and no power under it may be exercised until the National Telecommunications Commission (“NTC”) has:
- allotted the frequencies, wavelengths, and channels to be used;
- determined the stations to and from which frequency and wavelength may be used; and
- issued to the grantee a license for such use.
Section 7(b) authorizes the NTC, on reasonable notice to the grantee, to change or modify the allotments of frequencies or wavelengths in whole or in part.
Section 7(b) permits NTC action whenever, in its judgment, any/all of the following exist:
- the frequencies and wavelengths have been used, or there is danger they will be used by the grantee to impair or stifle competition, obtain a monopoly in electrical communication, or secure unreasonable rates;
- the frequencies and wavelengths are to be used in violation of otherwise the laws of public policy of the Republic of the Philippines; or
- the public interests require that such frequencies and wavelengths be used for purposes other than those of the grantee, either by the government or by other individuals or other corporations licensed by it.
Section 7(b) adds a further basis: for any reason, the public interest so requires.

Section 2 requires the grantee to file a bond of Fifty thousand pesos (P50,000) to guarantee full compliance with the conditions of the franchise.
Section 2 provides that if, after four (4) years from the date of approval of this Act, the grantee has fulfilled the conditions (or soon thereafter), the bond shall be cancelled by the Philippine Government.
Section 2 provides that if the conditions are not fulfilled, the bond shall be forfeited in favor of the State.

Section 6 prohibits the grantee from requiring prior censorship in any speech, play, or other matter to be broadcast.
Section 6 authorizes the grantee, during any broadcast, to cut off from the air any speech, play, or other matter if its tendency is to propose and/or incite treason, rebellion or sedition, or if the language used or the theme is indecent or immoral and the grantee willfully fails to cut off.
Section 6 provides that willful failure to cut off under the authorized grounds constitutes a valid cause for cancellation of this franchise.

Section 5 provides that if any individual, partnership, or corporation receives from Congress a similar franchise with any term more favorable than this franchise or tending to place the grantee at any disadvantage, then the more favorable term(s) shall ipso facto form part of this franchise’s terms.
Section 5 requires that the added favorable term(s) operate equally in favor of the grantee.

Section 8 requires the grantee to hold the national, provincial, city and municipal governments free from all claims, accounts, demands, or actions arising out of accidents or injuries.
Section 8 covers injuries to property or persons caused by the construction or operation of the grantee’s station.

Section 9 prohibits the grantee from taking private property for any purpose without proper condemnation proceedings and payment and tender of just compensation.
Section 9 provides that any authority to take and occupy land under the franchise does not apply to the taking, use, or actual and necessary purpose for which the franchise is granted.

Section 10 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other legal entity without previous approval of Congress.
Section 10 also prohibits the grantee from merging with any other company or corporation organized for the same purpose without previous congressional approval.
Section 10 subjects any corporation to which the franchise is sold, transferred, or assigned to the corporation laws of the Philippines now existing or hereafter enacted.
Section 10 requires that the assignee person, firm, company, corporation, or other commercial or legal entity be bound by all conditions, terms, restrictions, and limitations of the Act as fully and completely as if originally granted to it.

Section 11 provides that the Act takes effect upon its approval.
The Act lapsed into law on May 25, 1995 without the President’s signature, pursuant to Sec. 27(1), Article VI of the Constitution.