REPUBLIC ACT NO. 5741 - AN
ACT TO AMEND REPUBLIC ACT NUMBERED FORTY-FIVE HUNDRED NINETY-EIGHT (RE:
FRANCHISE GRANTED TO V-M-C RURAL ELECTRICAL SERVICE COOPERATIVE, INC.)
Section 1. The title of Republic Act Numbered Forty-five
hundred ninety-eight is hereby amended to read as follows:
"An Act granting the V-M-C Rural Electric Service Cooperative, Inc., a
franchise for an electric light, heat and power system in the
Municipalities of Magalona, Manapla, Victorias, and Cadiz, all in the
Province of Negros Occidental."
Sec. 2. Section one to the same Act is hereby
amended to read as follows:
"Section 1. Subject to the terms and conditions
established in Act Numbered Thirty-six hundred thirty-six, as amended
by Commonwealth Act Numbered One hundred thirty-two, and to the
provisions of the Constitution, there is granted to V-M-C Rural
Electric Service Cooperative, Inc., for a period of twenty-five years
from the approval of this amendatory Act the right, privilege and
authority, to install, maintain and operate an electric light, heat and
power system, for the purpose of generating and distributing electric
light, heat and/or power for sale to its members and customers in all
the barrios and rural areas in the Municipality of Victorias excluding
the poblacion or town proper; in the Municipalities of Manapla and
Magalona and in all the barrios and rural areas in the Municipality of
Cadiz excluding the poblacion or town proper, all in the Province of
Negros Occidental."
Sec. 3. Section three of the same Act is hereby
amended to read as follows:
"Sec. 3. The grantee shall operate according, and at
all times adhere, to the area-coverage principle; shall be non-profit,
and shall during the first twenty-five years from the approval of this
amendatory Act, or for as long as its obligations are not fully paid be
exempted from all taxes, duties and fees of whatever kind and nature,
except income tax as applicable to non-agricultural cooperatives the
provisions of any existing law to the contrary notwithstanding.
"Area-coverage, as used in this Act, means that if a person lives in
the territory of an electric service cooperative system, he shall be
entitled to receive electric service regardless of the place of his
residence upon his becoming a member of such cooperative and regardless
of the cost of the service to him, whether profitable or not, the
feasibility of financial possibility of providing him service being
based on the principle that the cooperative's system is designed to
serve the interest of all its members collectively, and not
individually: Provided, That membership in the cooperative shall not
permit any preference or discrimination.
"Non-profit means that the cooperative shall be operates, without any
profit or dividend to its members, but the rates, fees rents or other
charges for electric energy and any other facilities, supplies,
equipment, or services furnished by the cooperative shall be sufficient
at all times: (a) to pay all operating and maintenance expenses
necessary or desirable for the prudent conduct of its business and the
principal of and interest on obligation issued or assumed by the
cooperative in the performance of the purpose for which it was
organized; and (b) for the creation of reserves. The revenues of the
cooperative shall be devoted first to the payment of the operating and
maintenance expenses and the principal of and interest on outstanding
obligations, and thereafter to such reserves for improvement, new
construction, depreciation and contingencies as the board may from time
to time prescribe."
Sec. 4. The same Act is hereby amended by
inserting the following new section between Section three and four
thereof:
"Sec. 3-A. The grantee is hereby authorized to
mortgage this franchise and its assets in favor of the Electrification
Administration, the Philippine National Bank, the Development Bank of
the Philippines or any other lending institution subject to the
approval of the Public Service Commission. The Development Bank of the
Philippines is hereby authorized to obtain foreign loans for relending
to the grantee pursuant to the provisions of Section three of Republic
Act Numbered Forty-eight hundred sixty."
Sec. 5. This Act shall take effect upon its
approval.
Enacted without Executive
approval, June 21, 1969.
|