Section 7Sec./Art. 7

Acceptance of this franchise and of all the terms and conditions hereof shall be given in writing to the Secretary of Transportation and Communications, copy furnished the chairman of the Commission, within sixty (60) days after the effectivity of this Act, otherwise, this franchise shall be deemed cancelled. As a guaranty that it has accepted this franchise in good faith, the grantee shall, within thirty (30) days from the granting of its first CPC, deposit with the National Treasurer the sum of One hundred thousand pesos (P100,000), in cash or negotiable instruments of the Philippine Government and file a bond in the amount of One million pesos (P1, 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 to CPC and for any reason other than an act of God, act of the public enemy, usurped or 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 or released within six (6) months of commencement of service.