Republic Act No. 2989

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1

Subject to the provisions of the Constitution, the NBC Broadcasting Company is hereby granted a franchise, which shall continue to be 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 and television stations in the Philippines: Provided, That this franchise shall be void unless the construction of at least one radio broadcasting or television station be 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 and television stations, to reach the population on important public issues; shall assist in the functions 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 subversive or treasonable acts.

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;" Act Numbered Thirty-nine hundred and ninety-seven, known as the Radio Broadcasting Law; Commonwealth Act Numbered One hundred and forty-six, known as the Public Service Act, and their amendments, as are applicable to radio broadcasting and television stations shall be applied, as far as practicable, to the radio broadcasting and television stations referred to in Section one.

Section 3

In the event of any competing 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 hereof and shall operate equally in favor of the grantee as in the case of said competing individual, partnership, or corporation.

Section 4

(a. The grantee shall be liable to pay the same taxes on its real estate, buildings and personal property, as other persons or corporations 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 5

The grantee shall file a bond of fifty thousand pesos to guarantee the faithful compliance of the conditions of this franchise.

Section 6

The grantee shall not sell, convey or otherwise transfer to any person, corporation, association or partnership this franchise without the previous approval of Congress.

Section 7

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 8

This Act shall take effect upon its approval.

Approved: June 19, 1960.