Conditions of Acceptance
- The grantee must acknowledge awareness of and agree not to support any propaganda against U.S. government policy or Filipino aspirations as expressed in 1913 communications.
- This agreement extends binding obligations on grantee's agents, administrators, successors, and assigns.
Physical Infrastructure and Service Obligations
- Poles must maintain a clearance of at least 20 feet above ground and be aesthetically acceptable without compromising public safety.
- Placement and design must be approved by municipal authorities.
- Grantee must supply electricity within 15 days to applicants, prioritized by application date and plant capacity.
- Capacity must be expanded with municipal council authorization if demand exceeds current plant capability.
- Service points must be within 30 meters of existing lines.
Equipment Standards and Underground Wires
- All apparatus must be modern, first-class, and wires insulated to prevent grounding.
- Wires must not obstruct public thoroughfares and must be installed to avoid public inconvenience.
- Upon legislative directive, wires must be placed underground at the grantee's expense without cost to the municipality.
Restoration and Relocation of Infrastructure
- Any disturbance to public pavement or sidewalks during pole erection must be repaired properly and promptly.
- Pole relocation due to municipal street extensions must be undertaken by the grantee at their expense without delay.
Adjustments for Municipal Uses
- Upon 48 hours' written notice, grantee must raise or remove poles or wires impeding municipal works or building removals.
- Cost of such alterations is shared: one-half borne by the requesting party.
- Municipal president and council may order compliance if grantee fails to act, with appeal rights to the provincial board.
Liability
- Grantee is liable for any injuries or damages caused by construction or neglect in maintaining safe poles and wires.
Acceptance, Deposit, Construction, and Operation Timeline
- Written acceptance of franchise conditions must be filed within 120 days after receiving the required certificate.
- Construction must commence within 6 months and completed with operation within 18 months barring force majeure.
- Grantee must provide a first-class electric service.
- Municipality entitled to 10% rebate on consumed current and free use of connections for public lighting except globes.
- Quarterly payments to municipal treasury: 0.5% of gross earnings first 20 years; 1.5% for remaining 30 years.
Good Faith Deposit
- Upon acceptance, grantee must deposit 1,000 pesos or approved securities as good faith guarantee.
- Deposit is forfeited if grantee fails to commence work or be ready for operation within prescribed periods unless prevented by force majeure.
- Interest from deposit belongs to grantee during deposit term.
- Deposit refunded upon commencement of operations within timeline.
Municipal Use of Poles
- Municipality may use grantee's poles without compensation for telephone or alarm systems.
- Such usage must not interfere with or damage the grantee's electric wires.
Amendment and Reversion Clauses
- Franchise subject to amendment, alteration, or repeal by U.S. Congress or Philippine Legislature.
- Upon termination, lands and rights revert to government entities originally owning them.
- Franchise-related property becomes Insular Government property after franchise expiry.
Restrictions on Stock and Bond Issuance
- Grantee prohibited from issuing stock or bonds except for actual cash or fair-valued property exchanges.
- Prior Public Utility Commission approval required.
- No stock or bond dividends may be declared.
Financial Transparency and Taxation
- Grantee's books must be open to the provincial treasurer or deputy.
- Quarterly reports on gross and net receipts and business condition must be submitted.
- Grantee subject to taxes on real estate, plant, machinery, and personal property as per law.
Transfer and Assignment of Franchise
- Grantee may sell, lease, or assign franchise and properties with Public Utility Commission approval.
- Transferee must file a written agreement to comply with franchise terms.
Forfeiture of Franchise
- Municipal council, with Secretary of Commerce and Communications' approval, may forfeit franchise for non-compliance.
- Non-compliance must not be caused by force majeure or uncontrollable events.
- Grantee can seek judicial relief within 60 days, or rights to contest are waived.
Government Purchase Option
- After 20 years, Philippine Government or political subdivisions may purchase grantee's properties at valuation decided by the Supreme Court acting as arbitrators.
- The valuation is based on net earnings.
Definition of Grantee
- The term "grantee" applies to B. A. Green and his representatives, successors, or assigns.
Effectivity
- Act becomes effective upon approval.