Sec. 3. This franchise is likewise made upon the express condition that the grantee shall provide adequate public service time to enable the Government thru its station, to reach the population on important issues, shall assist in the functions of public information and education, shall conform to the ethics of honest enterprise, and shall not use its station for the dissemination of deliberately false information or willful misrepresentation, or to the detriment of the public health, or to incite, encourage or assist in subversive or treasonable acts.cralaw

Sec. 4. The grantee's radio broadcasting station shall not be put in actual operation until the Secretary of Public Works and Communications shall have allotted to the grantee the frequency and wave lengths to be used under this franchise and issued to the grantee license for such use.cralaw

Sec. 5. The radio broadcasting station of the grantee shall be so constructed and operated, and the wave lengths so selected, as to avoid interference with existing radio stations and to permit of the expansion of the grantee's services.cralaw

Sec. 6. A special right is reserved to the President of the Philippines in time of war, rebellion, public peril, calamity, disaster or disturbance of peace or order, to cause the closing of said station or to authorize the temporary use and operation thereof by any department of the Government without compensating the grantee for the use of said station during the period when they shall be so operated.cralaw

Sec. 7. The grantee shall be liable to pay the same taxes, unless exempted therefrom, on its real estate buildings, and personal property, exclusive of the franchise, as other persons or corporations are now or hereafter may be required by law to pay. It shall be liable further to pay all other taxes as provided in the National Internal Revenue Code by reason of this franchise.

Sec. 8. The franchise hereby granted shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires.cralaw

Sec. 9. Acceptance of this franchise shall be given in writing by the grantee within six months after the approval of this Act. When so accepted, the grantee shall be empowered to exercise the privileges granted thereby.cralaw

Section 10. The grantee shall file a bond in the amount of one thousand pesos to guarantee the full compliance with the fulfillment of the conditions under which this franchise is granted. If after two years from the date of acceptance of this franchise, the grantee shall have fulfilled said conditions or soon thereafter as the grantee shall have fulfilled the same, the bond aforesaid shall be cancelled by the Secretary of Public Works and Communications.cralaw

Section 11. The grantee shall not require any previous censorship of any speech, play or other matter to be broadcast from its station, but if any such speech, play or other matter should constitute a violation of the law or infringement of a private right, the grantee shall be free from any liability, civil or criminal, for such speech, play or other matter: Provided, That the grantee, during any broadcast may cut off from ther the speech, play or other matter being broadcast if the tendency is to propose and/or incite treason, rebellion or sedition, or the language used therein other theme thereof is indecent or immoral.

Section 12. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise nor the rights and privileges acquired thereunder to any person, firm, company, corporation or other commercial or legal entity, nor merge with any other company or corporation organized for the same purpose, without the approval of the Congress of the Philippines first had. Any corporation to which this franchise may be sold, transferred or assigned shall be subject to the corporation laws of the Philippines now existing or hereafter enacted, and any person, firm, company, corporation or other commercial or legal entity to which this franchise is sold, transferred or assigned shall be subject to all conditions, terms, restrictions and limitations of this franchise as fully and completely and to the same extent as if the franchise had been originally granted to the said person, firm, company, corporation or other commercial or legal entity.cralaw

Section 13. This franchise shall not be interpreted as an exclusive grant of the privileges herein provided for.cralaw

Section 14. This Act shall take effect upon its approval.cralaw

Approved: June 18, 1959.