Law Summary

SECTION 1: Grant of Franchise

• Legal Principle: This section grants Nilda E. Martinez the right to establish an electric light, heat, and power system in Masbate for a duration of twenty-five years.
• Key Definitions:
  • Franchise: The authority to construct, maintain, and operate a utility system.
  • Electric light, heat, and power system: Infrastructure for generating and distributing electricity.
• Requirements/Procedures:
  • The franchise is subject to the terms established in Act No. 3636 (as amended by Commonwealth Act No. 132) and the provisions of the Philippine Constitution.
• Timeframes:
  • The franchise is valid for twenty-five years from the date of the Act's approval, which is June 18, 1949.

Key Details: • Nilda E. Martinez is the designated grantee of the franchise.
• The franchise is limited to the municipality of Masbate, Province of Masbate.
• Compliance with existing laws is mandatory.

SECTION 2: Surrender of Franchise

• Legal Principle: This section outlines the conditions under which the grantee must surrender the franchise to the government.
• Requirements/Procedures:
  • If the Government desires to operate the plant, the grantee must relinquish the franchise.
  • The grantee is required to turn over all serviceable equipment to the Government at cost.

Key Details: • The grantee must comply with the government’s request to surrender the franchise.
• All serviceable equipment must be transferred to the Government, indicating a valuation at cost.

SECTION 3: Effectivity of the Act

• Legal Principle: This section states the commencement of the law.
• Timeframes:
  • The Act takes effect immediately upon approval.

Key Details: • The approval date is June 18, 1949, marking the effective date of the franchise.

Key Takeaways

• Republic Act No. 407 grants Nilda E. Martinez a twenty-five-year franchise to operate an electric utility in Masbate, subject to existing laws.
• The government holds the right to take over the franchise and associated equipment if it chooses to operate the service itself.
• The Act is effective immediately upon approval, which occurred on June 18, 1949.