Section 13Sec./Art. 13

Acceptance of Franchise. Within sixty (60) days after the effectivity of this Act, the grantee shall file with the Secretary of Transportation and Communications its written acceptance of this franchise and of all the terms and conditions hereof. In default of such acceptance within the said time, this franchise shall become null and void. As a guaranty that it has accepted this franchise in good faith, the grantee shall, within thirty (30) days, deposit with the National Treasury the sum of One hundred thousand pesos (₱100,000) in cash or negotiable instruments of the Philippine Government and file a bond in the amount of One million pesos (₱1,000,000).

Should the grantee fail, refuse or neglect to begin the business of providing a telephone service within two (2) years of the grant of the certificate of public convenience and for any reason other than an act of God, act of the public enemy, military power, martial law, riot, civil commotion, or unavoidable cause, then the deposit prescribed under this section shall be forfeited in favor of the National Government as liquidated damages. Should the grantee perform on time the undertaking for which the deposit is required, then the deposit shall be returned to the grantee and its bond cancelled within six (6) months of commencement of service.