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Section 1. Subject to the provisions of the Constitution, the Sta. Clara Lumber Co., Inc., is hereby granted a franchise to operate all points radio stations, and particularly, point-to-point radio stations, from Manila to Davao City; Naga or Sulitan, Kabasalan, Zamboanga del Sur; Isabela, Basilan City; and Port Labak, Cotabato; and at such places wherein it operates its business, and between each of these points to one another as well as from car to car, sea to shore or shore to sea, as well as coastal, aeronautical, land based and land mobile radio stations for the reception and transmission of wireless messages on radiotelegraphy or radiotelephony, each station to be provided with radio transmitting apparatus and radio receiving apparatus; and to maintain land mobile service within the points specified herein, which shall continue in force during the time that the Government has not established similar service at the places selected by the grantee; to construct, maintain and operate, for commercial purposes and in the public interest, and aforementioned coastal, aeronautical, land based and land mobile, and point-to-point radio stations in the Philippines: Provided, That this franchise shall be void unless the construction of at least one point-to-point radio station be begun within two years from the date of approval of this Act, and be completed within four years from said date.

Section 2. Such provisions of Act Numbered Thirty-eight hundred and forty-six, entitled “An Act providing for the regulation of radio stations and radio communications in the Philippine Islands, and for other purposes;” Commonwealth Act Numbered One hundred and forty-six, known as the Public Service Act, and their amendments, as are applicable to radio stations shall be applied, as far as practicable, to the radio stations referred to in Section one.

Section 3. The grantee shall file a bond in the amount of fifty thousand pesos to guarantee full compliance and fulfillment of the conditions under which this franchise is granted.

Section 4. In the event of any completing individual, partnership or corporation receiving from the Congress a similar franchise in which there shall be any term or terms more favorable than those herein granted or tending to place the herein grantee at any disadvantage, then such term or terms shall ipso facto become a part of the terms thereof and shall operate equally in favor of the grantee as in the case of said competing individual, partnership, or corporation.

Section 5. The grantee 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.

Section 6. The grantee shall hold the national, provincial, city and municipal governments of the Philippines harmless from all claims, accounts, demands or action arising out of accidents or injuries, whether to property or to persons, caused by the construction or operation of its radio stations.

Section 7. (a) The grantee shall be liable to pay the same taxes on its real estate, buildings and personal property, exclusive of the franchise, as other persons or corporation are now or hereafter may be required by law to pay.
(b) The grantee shall further be liable to pay all other taxes that may be imposed by the National Internal Revenue Code by reason of this franchise.

Section 8. In the event the Government should desire to maintain and operate for itself any or all of the stations herein authorized, the grantee shall turn over such station or stations to the Government with all the serviceable equipment therein, at cost, less reasonable depreciation.

Section 9. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or 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 previous approval of the Congress of the Philippines. Any corporation to which this franchise is sold, transferred or assigned, shall be subject to all the conditions, terms, restrictions and limitations of this franchise as fully and completely and to the same extent as if the franchise has been originally granted to the said person, firm, company, corporation or other commercial or legal entity.

Section 10. This Act shall take effect upon its approval.

Approved, June 22, 1963.

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