Policy and implementing directive
- The Circular prescribes conditions for the grant of applications seeking approval for the sale and transfer of CPCs.
- The Circular requires documentary compliance as annexes to every application/petition for Board approval of such sales and transfers.
- Applications/petitions receive no acceptance for filing and hearing unless the required annexes are attached.
- The Circular recognizes that a sale franchise may disqualify the original grantee from future holding of a franchise.
- The Circular is designed to align Board approval practice with the Department of Transportation and Communications (DOTC) Memorandum dated 23 July 1996.
Acceptance and grant conditions
- A notarized Deed of Sale (or document of conveyance) must be part of the evidence supporting the petition for sale and transfer.
- The validity of the franchise being sold and transferred must be still subsisting.
- The sale must cover all the units specified under the franchise being sold and transferred.
- Fractional sale of franchises is not allowed.
- All authorized units under the CPC being transferred must be properly registered with the Land Transportation Office (LTO) for the year preceding the date of transaction.
- There must be no outstanding obligations, including fines and penalties, attached to the franchise for sale.
- The grant framework also carries the effect that a sale of the franchise may disqualify the original grantee from future holding of a franchise.
Required annexes to every application
- Every application/petition for Board approval of the sale and transfer of CPCs must attach a duplicate (not xerox) copy of the Deed of Sale or document of conveyance, and it must be duly notarized.
- Every application/petition must attach a copy of the CPC/decision in the name of the seller/vendor, with the date of expiry clearly legible in the CPC/decision.
- Every application/petition must include an LTO certification stating that all units authorized under the CPC being transferred or sold have been registered for the year preceding the sale/transaction.
- Every application/petition must include a certification from the Technical Evaluation Division (TED) stating that the CPC holder selling/transferring the franchise has no outstanding obligations under the franchise with the Board.
- The Circular requires these annexes to be attached as compliance documents for Board processing.
When applications are accepted
- No application/petition for Board approval of the sale and transfer of Certificates of Public Convenience is accepted for filing and hearing unless the required annexes are attached.
- Acceptance for filing and hearing is therefore conditioned on the documentary attachments listed for: the notarized Deed of Sale (duplicate), the seller/vendor CPC/decision with expiry date, the LTO registration certification, and the TED no-obligation certification.
- Board hearing proceeds only after compliance with the annex requirements for the sale/transfer petition.
Effectivity and transitory implementation
- The Circular takes effect fifteen (15) days after filing of three (3) copies with the U.P. Law Center.
- The Circular is adopted on July 29, 1996.
- The Circular is expressly tied to implementation of Presidential Memorandum Circular No. 11, dated October 9, 1992.