AN ACT AUTHORIZING THE TRANSFER AND ASSIGNMENT TO THE FRANCISCO N. CERVANTES

Case Overview and Summary

Summary of Republic Act No. 7110

Transfer and Assignment of Franchise
- The sale, transfer, and assignment of the franchise to establish and operate radio stations for domestic and international communications granted to Francisco N. Cervantes under Republic Act No. 5954 to Francisco N. Cervantes, Inc. is authorized and approved. (Section 1)

Public Offering Requirement
- The grantee (Francisco N. Cervantes, Inc.) shall make a public offering through stock exchanges of at least 30% of its common stocks within 3 years from the approval of this Act. (Section 2)
- No single person or entity shall be allowed to own more than 5% of the stock offerings. (Section 2)

Compliance with Republic Act No. 5954
- Francisco N. Cervantes, Inc. shall be subject to the provisions of Republic Act No. 5954. (Section 3)

Extension of Franchise Term
- The term of the franchise granted under Republic Act No. 5954 is extended by another 25 years from March 4, 1999, which is the date of expiration under the said Act. (Section 4)

Annual Report Submission
- The grantee shall submit an annual report to the Congress of the Philippines on its compliance with the terms and conditions of the franchise. (Section 5)

Use of Facilities in Emergencies
- The facilities subject to the franchise may be used for free in times of calamity or emergency by the police or fire protection service, duly licensed hospitals, duly licensed educational institutions, and any sea, land, or air transport in distress. (Section 6)

Effectivity
- This Act shall take effect 15 days from the date of its publication in at least two newspapers of general circulation. (Section 7)