Presidential Authority During Emergencies
- The President may close the grantee's radio stations or authorize government use without compensation during war, insurrection, public peril, or other national emergencies when public safety requires.
Use of Public Domain Land
- The President has power to permit construction of stations on public domain land under terms and conditions prescribed.
Duration and Conditions of Franchise
- Franchise term is fifty years commencing from the operation of the first station.
- Construction of stations must begin within two years and be completed within four years from approval.
- Failure to comply voids the franchise.
Performance Bond Requirement
- Grantee must file a bond of fifty thousand pesos to guarantee franchise condition compliance.
- Bond is canceled upon fulfillment of conditions after four years.
Licensing and Frequency Allocation
- Franchise takes effect only after the Secretary of Public Works and Communications allocates frequencies, wavelengths, and channels and issues license.
- Secretary shall consider government radio telecommunication expansion programs in allotting frequencies.
- Secretary may modify or cancel frequency allotments on reasonable notice based on considerations such as:
- Prevention of electrical communication impairment or monopoly.
- Public interest requiring frequency use by government or other licensees.
- Other public interest grounds.
Technical Operation Standards
- Stations must be constructed and operated to avoid interference with existing stations.
- Wavelengths must permit expansion of grantee's services.
Indemnification of Government
- Grantee indemnifies national, provincial, and municipal governments against claims from accidents or injuries arising from station construction or operation.
Land Acquisition and Compensation
- Grantee cannot take private property without proper condemnation and just compensation.
- Authority to occupy land applies only to necessary purposes related to the franchise.
Accounting and Reporting Obligations
- Grantee to keep accounts of gross receipts and submit copies annually to Auditor General and Treasurer by January 31.
- Books are subject to official inspection and audit.
- Audit approval constitutes conclusive evidence of gross receipts but is subject to judicial appeal.
Compliance with Corporation Laws
- Grantee and successors must comply with existing and future Philippine corporation laws.
Equal Terms for Competing Franchises
- If a competing franchise grants more favorable terms, such terms automatically apply to this franchise to avoid disadvantage.
Restriction on Transfer and Assignment
- Franchise and privileges cannot be leased, transferred, sold, or assigned without prior Congressional approval.
- Any transferee or assignee is subject to corporation laws and all conditions of the franchise as if originally granted.
Taxation
- Grantee pays applicable taxes on real estate, buildings, and personal property.
- Additionally, pays 1.5% of gross receipts from franchise business annually within 10 days after audit approval.
Non-Exclusivity of Franchise
- The franchise does not grant exclusive rights to the grantee.
Effectivity
- The Act takes effect upon approval and was enacted without Executive approval on June 19, 1960.