Sec. 2. This franchise shall continue for a period of twenty-five years from the date of the said station shall be put in operation, and is granted upon the express condition that the same shall be void unless the construction of said station be begun within six months from the date of approval of this Act and be completed within two years from said date.cralaw

Sec. 3. This franchise is likewise made upon the express condition that the grantee shall contribute to the public welfare, shall assist in the functions of public information and education, shall conform to the cities of honest enterprise, and shall not use in its station for the dissemination of deliberately false information or willful misrepresentation or to the detriment of public health, or to incite, encourage or assist in subversive or treasonable acts.

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 length to be used under this franchise and issued to the grantee a license for each use.cralaw

Sec. 5. The radio broadcasting station of the grantee shall be so constructed and operated and the wave length 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 the 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.cralaw

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 are the approval of this Act. When so accepted, the grantee shall be empowered to exercise the privileges granted thereby.

Section 10. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise not 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 purposes, 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 franchise shall not be interpreted as an exclusive grant of the privileges herein provided for.

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

Approved: June 12, 1954