Republic Act No. 6550

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Subject to the provisions of the Constitution Act Numbered Three thousand eight hundred forty-six, Act Numbered Three thousand nine hundred ninety-seven, known as the Public Service Act, as amended, and other applicable laws not inconsistent with this Act, Makati Broadcasting Corporation is hereby granted a franchise to construct, operate and maintain radio broadcasting stations within the Greater Manila Area and Rizal Province.

Section 2

This franchise shall continue for a period of twenty-five years from the approval of this Act.

Section 3

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

Section 4

The grantee's radio broadcasting stations 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 such use.

Section 5

The radio broadcasting stations of the grantee shall be so constructed and operated and the wave length so selected so as to avoid interference with existing radio stations and permit the expansion of the grantee's service.

Section 6

A special right is reserved to the President the Philippines in time of war, rebellion, public peril, calamity, disaster or disturbance of peace and 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 said stations during the period when it shall be so operated.

Section 7

The grantee shall be liable to pay the same taxes, unless exempted therefrom, on its real estate, buildings and personal property, exclusive of this franchise, as other persons or corporations are now or hereafter may be required by law to pay.

Section 8

In consideration of the franchise and rights hereby granted, the grantee shall pay a franchise tax equal to five per centum of the gross earnings under this franchise, three per centum shall accrue to the National Government and two per centum, to the municipalities where the franchise is being operated.

Section 9

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

Section 10

Acceptance of this franchise shall be given in writing by the grantee within six months, after the approval of this Act. When so accepted, the grantee shall be empowered to exercise the privilege granted thereby.

Section 11

The grantee shall not lease, transfer, grant the usufruct of, sell or assign this franchise or 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 previous approval of the Congress of the Philippines. Any corporation, company, firm or person 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 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 the said person, firm, company, corporation or other commercial or legal entity.

Section 12

This Act shall take effect upon its approval.

Enacted without Executive approval, August 26, 1972.