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Section 1. Subject to the provisions of the Constitution, the Allied Broadcasting Center is hereby granted a permit, 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, radio broadcasting stations in the Philippines: Provided, That the permit shall be void unless the construction of at least one radio broadcasting station begun within two years from the date of approval of this Act, and be completed within four years from said date: Provided, further, That the grantee shall provide adequate public service time to enable the Government through the said radio broadcasting stations to reach the population on important public issue, shall assist on the function of public information and education; shall conform to the ethics of honest enterprise and shall not use its stations for the broadcasting of obscene or indecent language or speech, 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 subversion or treasonable acts.chanrobles virtualaw library

Sec. 2. The grantee shall file a bond in the amount of twenty thousand pesos to guarantee for the full compliance and fulfillment of the conditions under which this permit is granted.chanrobles virtualaw library

Sec. 3. In the event of any competing individual, partnership or corporation, receiving from Congress a similar permit 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 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.chanrobles virtualaw library

Sec. 4. The grantee, its successors or assigns, shall hold the national, provincial, city and municipal governments of the Republic of the Philippines harmless from all claims, accounts, demands or actions arising out of accidents or injuries, whether to property or persons, caused by the construction or operation of its radio stations.chanrobles virtualaw library

Sec. 5. (a) The grantee shall be liable to pay the same taxes on its real estate, buildings and personal property exclusive of the permit, as other persons or corporations are now or hereafter maybe required by law to pay.

(b) The grantee shall further be liable to pay all other taxes as provided in the National Internal Revenue Code by reason of this permit.chanrobles virtualaw library

Sec. 6. In the event the Government should desire to maintain and operate for itself any or all of the stations of the grantee, the latter shall turn over said station or stations to the Government with all the serviceable equipment therein, at cost, less reasonable depreciation.chanrobles virtualaw library

Sec. 7. A special right is hereby reserved to the President of the Philippines in time of war, rebellion, public peril, emergency, calamity disaster or disturbance of peace or order to cause the closing of said stations or to authorize the temporary use and operation thereof by any department of the government without compensating the grantee for the use of said stations during the period when they shall be so operated.chanrobles virtualaw library

Sec. 8. The grantee shall not require any previous censorship of any speech, play, act or scene or other matters to be broadcasting from its stations; but it any such speech, play, act or scene or other matters should constitute a violation of the law or infringement of private right, the grantee shall be free from any liability, civil or criminal, for such speech, play, act or scene or other matters: Provided, That the grantee, during any broadcast may cut off from the air the speech, play, act or scene or other matters being broadcast, 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.chanrobles virtualaw library

Sec. 9. The grantee shall not lease, transfer, grant the usufruct of, sell or assign this permit 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 permit is sold transferred, or assigned, shall be subject to all the conditions, terms, restrictions and limitations of this permit as fully and completely and to the same extent as if the permit has been originally granted to the same person, firm, company, corporation and other commercial or legal entity.chanrobles virtualaw library

Sec. 10. The permit granted under this Act shall be subject to amendment, alterations 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.chanrobles virtualaw library

Sec. 11. This Act shall take effect its approval.

Enacted without Executive approval, June 19, 1960.