Issuing authority, franchise grant
- Section 1 grants Lucas Martinez the right, privilege, and authority to construct, maintain, and operate an electric light, heat and power plant.
- The franchise purpose is to generate and distribute electric light, heat and/or power for sale.
- The franchise coverage is within the Municipality of Bugasong, Province of Antique.
- Section 1 makes the grant subject to the terms and conditions established in Act No. 3636, as amended by Commonwealth Act No. 132, and subject to the provisions of the Constitution.
Term of franchise
- Section 1 grants the franchise for a period of twenty-five years from the approval of the Act.
Start of operation requirement and cancellation
- Section 1 requires the franchise holder to start operation within one and one-half years from approval if the holder is a new operator.
- Section 1 requires the franchise holder to start operation within six months from approval if the holder is an at present holder of a municipal franchise.
- Section 1 states that failure to comply with these start-operation requirements ipso facto cancels and voids the franchise.
Government takeover and surrender terms
- Section 2 provides that if the Government desires to maintain and operate for itself the plant and enterprise authorized, the franchise holder must surrender the franchise.
- Section 2 requires the grantee to turn over to the Government all serviceable equipment in the plant.
- Section 2 sets the turnover price as at cost, less reasonable depreciation.