Section 12Sec./Art. 12

As a guaranty that this franchise has been accepted in good faith, the grantee, its successors or assigns, shall file, after the granting of the certificate of public necessity and convenience by the National Telecommunications Commission, with the National Treasurer, a surety bond in such amount as may be fixed by the proper government authority to guarantee full compliance and fulfillment of the conditions under which this franchise is granted.

Should the said grantee, its successors or assigns for any cause other than the act of God, the public enemy, usurped or military power, martial law, riot, civil commotion, or inevitable cause, fail, refuse, or neglect to begin, within two (2) years from the date of the granting of said certificate of public necessity and convenience, the business of providing telecommunication service or fail, refuse, or neglect to be fully equipped and ready to operate, within two (2) years from the date of granting of said certificate of public necessity and convenience, telecommunications systems as have been agreed with competent authority, according to the terms of this franchise, then the bond prescribed by this section to be filed with the National Treasurer shall become the property of the National Government as liquidated damages caused to the Government by such failure, refusal or neglect, and thereafter no interest on said bonds shall be paid to the grantee, its successors or assigns.

Should the grantee, its successors or assigns, begin the business of providing a telephone service and be ready to operate according to the terms of this franchise, telecommunications systems within two (2) years from the date of the granting of said certificate of public necessity and convenience, then and in that event the bond prescribed by this section shall be returned by the Government of the grantee, its successors or assigns, as soon as the telephone service has begun in accordance with the terms of this franchise: Provided, further, That all the time during which the grantee, its successors or assign, may be prevented from carrying out the terms and conditions of this franchise by any of said causes shall be added to the time allowed by this franchise for compliance with its provisions.