Title
Requirements for Sale and Transfer of CPCs
Law
Ltfrb Memorandum Circular No. 96-015
Decision Date
Jul 29, 1996
The Land Transportation Franchising and Regulatory Board outlines stringent requirements for the sale and transfer of Certificates of Public Convenience, including notarized deeds, valid franchises, and proof of registration, to ensure compliance and accountability in public land transport services.

Law Summary

Required Documents for Application Filing and Approval

  • A duplicate (not xerox) notarized copy of the Deed of Sale or conveyance document for the CPC being sold or transferred.
  • Copy of the CPC or the decision in the seller/vendor's name, with the expiration date clearly legible.
  • Certification from the LTO confirming that all units authorized under the CPC were registered for the year before the transaction.
  • Certification from the Technical Evaluation Division (TED) stating there are no outstanding obligations on the franchise from the CPC holder.

Filing and Hearing Procedure

  • Applications or petitions for approval of sale and transfer of CPCs will not be accepted unless all the required documents are annexed.
  • This procedural requirement ensures adherence to the conditions set by the Department of Transportation and Communications (DOTC).

Legal Effectivity

  • The Memorandum Circular takes effect fifteen (15) days after filing three copies with the U.P. Law Center, as per Presidential Memorandum Circular No. 11, dated October 9, 1992.

Administrative Authorities Involved

  • Department of Transportation and Communications (DOTC)
  • Land Transportation Franchising and Regulatory Board (LTFRB)
  • Land Transportation Office (LTO)
  • Technical Evaluation Division (TED) of the LTFRB

Important Legal Concepts

  • Certificates of Public Convenience (CPC) authorize the operation of public land transport services.
  • Sale and transfer of CPCs require strict documentary compliance.
  • The prohibition of fractional sales protects the integrity and scope of the franchise.
  • Ensuring no outstanding obligations maintains regulatory discipline among CPC holders.

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