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Section 1.    Subject to the provisions of the Constitution, as well as of Act Numbered Thirty-eight hundred forty-six, entitle "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 forty-six, known as the Public Service Act, and their amendments, and other applicable laws not inconsistent with this Act, the Vanguard Radio Network Company is hereby granted a franchise to construct, operate and maintain for commercial purposes and in the interest of the public, radio broadcasting and television stations in the Philippines for a period of twenty-five years: Provided, That this franchise shall be void unless the construction of at least one radio broadcasting or one television station be begun within two years from the date of the approval of this Act and be completed within four years from said date: Provided, further, That the grantee shall provide public service time to enable the government, through the said radio broadcasting and television stations to reach the population on important public issues; shall assist in the function of public information and education; shall conform to the ethics of honest enterprise; and shall not use its stations for the broadcasting and/or telecasting of obscene or indecent language, act or scene, or 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.

Sec. 2.    In the event of any competing person, natural or juridical, receiving from Congress a similar franchise in which there shall be any term or terms more favorable than those herein granted or tending to place herein grantee at any disadvantage, then such term or terms shall ipso facto become part of the terms hereof and shall operate equally in favor of the grantee as in the case of said competing person.

Sec. 3.    A special right is reserved to the President of the Philippines in time of war, insurrection, public peril or other national emergency and when public safety requires, to cause the closing of the grantee's radio broadcasting and television station or stations or to authorize the temporary use or possession thereof by any department of the Government without compensation to the grantee for the use of said stations during the continuance of the national emergency. 

Sec. 4.    As a condition to the granting of this franchise, the grantee shall execute a bond in favor of the government of the Philippines in the sum of fifty thousand pesos, in form and with sureties satisfactory to the Secretary of Public Works and Communications, conditioned upon the faithful performance of the grantee's obligations hereunder during the first three years of the life of this franchise. If after four years from the date of acceptance of this franchise, the grantee shall have fulfilled said obligations, or as soon thereafter as the grantee shall have fulfilled the same, the aforesaid bond shall be cancelled by the Secretary of Public Works and Communications.

Sec. 5.    Acceptance of this franchise shall be given in writing within one year after the approval of this Act. When so accepted by the grantee and upon approval of the bond aforesaid by the Secretary of Public Works and Communications the grantee shall be empowered to exercise the privileges granted thereby. 

Sec. 6.    The grantee's radio broadcasting and television stations shall not be put in actual operation until the Secretary of Public Works and Communications shall have allotted to the grantee the frequencies and wave lengths to be used under this franchise and issued to the grantee a license for such use.

Sec. 7.    The grantee shall not require any previous censorship of any speech, play, act or scene or other matter to be broadcast and/or telecast from its stations; but if any such speech, play, act or scene or any 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, act or scene or other matter: Provided, That the grantee, during any broadcast and/or telecast, shall cut off from the air the speech, play, act or scene or other matter being broadcast and/or telecast, if the tendency thereof is to propose and/or incite treason, rebellion or sedition, or the language used therein or the theme thereof is indecent or immoral, and willful failure to do so shall constitute a valid cause for the cancellation of this franchise. 

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

Sec. 9.    The grantee shall not lease, transfer, grant the usufruct of, sell nor assign this franchise or the rights and privileges acquired thereunder to any person, natural or juridical, nor merge with any other person without the previous approval of the Congress of the Philippines. Any person, natural or juridical, 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 had been originally granted to such person.

Sec. 10.    The franchise hereby granted shall be subject to amendment, alteration, or repeal by the Congress of the Philippines when the public interests so requires. 

Sec. 11.    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, natural or juridical, are now hereafter may be required by law to pay. 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.

Sec. 12.    This franchise shall not be interpreted as an exclusive grant of the privileges herein provided for.

Sec. 13.    Whenever in this franchise the term "grantee" is used, it shall be held and understood to mean and represent the Vanguard Radio Network Company, its representatives, successors or assigns.

Sec. 14.    This Act shall take effect upon its approval.

Approved: June 17, 1961. 

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