Section 12Sec./Art. 12

As a condition of the granting of this franchise, the grantee shall execute a bond in favor of the government of the Philippines in the sum of Fifty thousand pesos (P50,000) in form and with sureties satisfactory to the Secretary of Transportation and Communications conditioned upon the faithful performance of the grantee's obligations hereunder during the first four (4) years of the life of this franchise. If, after four (4) years from the date of the approval of this franchise, the grantee shall have fulfilled the said conditions, the bond shall be cancelled by the Secretary of Transportation and Communications, otherwise it shall be forfeited in favor of the government.