Franchise for Plywood Industries to Operate Radio Stations

Section 1 makes the franchise void unless the grantee begins construction of at least one point-to-point radio station within two years from the date of approval of the Act.
Section 1 requires completion of the at least one point-to-point radio station within four years from the date of approval of the Act.
Section 1 requires the grantee to provide adequate public service time to enable the Government, through the point-to-point radio stations, to reach the population on important public issues.
Section 1 requires the grantee to assist in the functions of public information and education.
Section 1 requires the grantee to conform to the ethics of honest enterprise.

Section 1 prohibits the grantee from broadcasting obscene or indecent language or speech.
Section 1 prohibits the grantee from disseminating deliberately false information or willful misrepresentation.
Section 1 prohibits use of the station to the detriment of the public health.
Section 1 prohibits the grantee from using the station to incite, encourage, or assist in subversive or treasonable acts.

Section 2 applies to the radio broadcasting stations in Section 1 the provisions of Act No. 3846 (for regulation of television and radio stations and radio communications), Act No. 3997 (Radio Broadcasting Law), and Commonwealth Act No. 146 (Public Service Act), including their amendments.
Section 2 applies these provisions as far as practicable to the stations authorized by Section 1.

Section 3 requires the grantee to file a bond of PHP 50,000 to guarantee full compliance and fulfillment of the franchise conditions.

Section 4 provides that if Congress grants a competing individual, partnership, or corporation a similar franchise with any term or terms more favorable than those granted to the grantee, or terms that tend to place the grantee at any disadvantage, then those more favorable terms ipso facto become part of the grantee’s franchise terms.
Section 4 states that the added terms operate equally in favor of the grantee as in the competing franchise.

Section 5 requires the grantee to pay the same taxes on its real estate, buildings, and personal property, exclusive of the franchise, as other persons or corporations are or may be required by law to pay.
Section 5 further requires the grantee to pay all other taxes that may be imposed by the National Internal Revenue Code by reason of the franchise.

Section 6 authorizes the Government, if it desires to maintain and operate for itself any or all of the stations authorized by the franchise.
Section 6 requires the grantee to turn over the station or stations to the Government with all serviceable equipment.
Section 6 sets the transfer price at cost, less reasonable depreciation.

Section 7 prohibits the grantee from leasing, transferring, granting the usufruct of, selling, or assigning the franchise or the rights and privileges acquired thereunder to any person, firm, company, corporation, or other commercial or legal entity.
Section 7 prohibits the grantee from merging with another company or corporation organized for the same purpose.
Section 7 requires previous approval of the Congress of the Philippines before any permitted transfer or similar action.
Section 7 provides that any corporation to which the franchise is sold, transferred, or assigned must be subject to all conditions, terms, restrictions, and limitations of the franchise as fully and completely as if the franchise had been originally granted to it.