Franchise to Operate Broadcast Stations in Mindanao

Section 1 requires the grantee to provide public service time so that the Government, through the stations, can reach the population on important public issues.
Section 1 requires assistance in the functions of public information and education.
Section 1 requires conformity to the ethics of honest enterprises.
Section 1 prohibits using the stations for broadcasting/telecasting obscene or indecent language, act, or scene.
Section 1 prohibits broadcasting/telecasting deliberately false or willful misrepresentations and prohibits use to the detriment of the public health or to incite, encourage, or assist in subversive or treasonable acts.

Section 1 grants the franchise to construct, establish, operate, and maintain radio broadcasting and television stations in Northern Mindanao.
Section 13 provides that the franchise continues for a period of twenty-five years from the Act’s approval.
Section 12 provides that the franchise is not an exclusive grant of the privileges provided in the Act.
Section 10 subjects the franchise to amendment, alteration, or repeal by the Congress of the Philippines when the public interest requires it.

Section 11 defines “grantee” to mean Pedro R. Luspo, Sr., including his representatives, successors or assigns, unless the context indicates otherwise.

Section 1 makes the franchise void unless the grantee begins construction of at least one radio broadcasting station or one television station within four years from the Act’s approval.
Section 1 requires completion of that construction within five years from the Act’s approval.
Section 1 obliges the grantee to operate in a manner that enables the Government to reach the population on important public issues through public service time.
Section 1 obliges compliance with the prohibitions against obscene/indecent content and the dissemination of deliberately false or willful misrepresentations, and prohibits incitement or assistance relating to subversive or treasonable acts.

Section 2 reserves to the President of the Philippines the right, in time of war, rebellion, public peril, emergency, calamity, disaster, or disturbance of peace and order, to cause the closing of the stations.
Section 2 authorizes the President to temporarily use and operate the stations through any department of the Government.
Section 2 requires due compensation to the grantee for the government period during which the stations are operated.

Section 3 prohibits requiring any previous censorship of any speech, play, act or scene, or other matter to be broadcast or telecast from the stations.
Section 3 provides that if broadcast/telecast matter violates the law or infringes a private right, the grantee is free from civil or criminal liability for such speech, play, act, scene, or other matter.
Section 3 requires the grantee, during any broadcast or telecast, to cut off from the air any speech, play, act, or scene, or other matter if:
- its tendency is to propose or incite treason, rebellion or sedition, or
- the language used is indecent or immoral, or the theme is indecent or immoral.
Section 3 declares that willful failure to make the required cut-off is a valid cause for the cancellation of the franchise.

Section 4 requires the grantee to hold the national, provincial and municipal governments of the Philippines harmless from all claims, accounts, demands, or actions.
Section 4 limits the covered harms to accidents or injuries caused by the construction or operation of the stations, whether involving property or persons.

Section 5 forbids the grantee to lease, transfer, grant the usufruct of, sell, or assign the franchise or rights and privileges acquired thereunder to any person (natural or juridical).
Section 5 forbids merger with any other person without previous approval of the Congress of the Philippines.
Section 5 provides that any person (natural or juridical) to whom the franchise is sold, transferred, or assigned must be subject to all conditions, terms, restrictions, and limitations of the franchise as if the franchise had originally been granted to that person.

Section 6 requires the grantee to pay the same taxes (unless exempted by law) on business, real estate, buildings, and personal property, excluding the franchise itself.
Section 14 requires payment of a tax equivalent to five per cent of gross income.

Section 7 requires the grantee to file a bond of PHP 10,000 to warrant fulfillment and compliance with franchise conditions.
Section 7 directs that if, after two years from acceptance, the grantee has fulfilled the conditions (or soon thereafter), the bond shall be cancelled by the Secretary of Public Works and Communications.

Section 8 requires the grantee to give written acceptance within six months after the approval of the Act.
Section 8 provides that upon acceptance, the grantee is empowered to exercise the privileges granted.
Section 9 prohibits putting the radio broadcasting and television stations into actual operation until:
- the Secretary of Public Works and Communications allots the frequency and wave lengths to be used under the franchise, and
- the Secretary issues the grantee the license for such use.

Section 14 establishes the franchise consideration as a tax equivalent of 5% of gross income.

Section 10 authorizes the Congress of the Philippines to amend, alter, or repeal the franchise whenever the public interest requires it.