Sec. 2. The President of the Republic of the Philippines shall have the power and authority to permit the location of said private fixed point-to-point and land-based radio stations or any of them on the public domain upon such terms as he may prescribe.

Sec. 3. This temporary permit shall continue to be in force during the time that the Government has not established similar service at the places selected by the grantee, and is granted upon the express condition that the same shall be void unless the grantee shall start operation of said stations within one and one-half years from the date of approval of this Act.cralaw

Sec. 4. The grantee shall not engage in domestic business of telecommunications in the Philippines without further special assent of the Congress of the Philippines, it being understood that the purpose of this temporary permit is to secure to the grantee the right to construct, install, establish and operate private fixed point-to-point and land-based radio stations in places within the Philippines as the interest of the company and its trade and business may justify.cralaw

Sec. 5. A special right is hereby reserved to the President of the Republic of the Philippines in time of war, insurrection, public peril, calamity or disturbance of peace or order, to cause the closing of the station or stations, or to authorize the temporary use or possession thereof by any department of the Government upon payment of just compensation.cralaw

Sec. 6. No fees shall be charged by the grantee as the radio stations that may be established by virtue of this Act shall engage in communications regarding the grantee's business only.cralaw

Sec. 6-A. The grantee shall file a bond in the amount of fifty thousand pesos to guarantee the full compliance and fulfillment of the conditions under which this franchise is granted. If after four years from the date of the approval of this Act the grantee shall have fulfilled said conditions or as soon thereafter as the grantee shall have fulfilled the same, the bond aforesaid shall be cancelled by the Government.cralaw

Sec. 7. The grantee, its successors or assigns, shall so construct and operate its radio stations as not to interfere with the operation of other radio stations maintained and operated in the Philippines.cralaw

Sec. 8. The grantee, its successors or assigns, shall hold the national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of its radio stations.

Sec. 9. The grantee, its successors or assigns, shall be subject to the Corporation Laws of the Philippines now existing or hereafter enacted.cralaw

Section 10. the grantee, its successors or assigns, is authorized to operate its private fixed point-to-point radio stations in the medium frequency, high frequency and very high frequency that may be assigned to it by the licensing authority.cralaw

Section 10.-A. 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 person, 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 11. This temporary permit shall be subject to amendment, alteration or repeal by the Congress of the Philippines when the public interest so requires, and shall not be interpreted as an exclusive grant of the privilege herein provided for.cralaw

Section 12. This Act shall take effect upon its approval.cralaw

Approved: June 20, 1959