Prohibition on Transfer of Permit, Lease, License, License Agreement.
Section 41
SEC. 41. Prohibition on Transfer of Permit, Lease, License, License Agreement. — (a) Except as herein below provided, the transfer, exchange, sale or conveyance of any permit, lease, license, license agreement or any transaction under any guise which will allow or permit another person to enjoy the privilege granted therein is hereby prohibited. (b) In the case of a lease or license agreement, after a period of three years from the issuance of the original lease or license agreement, the lessee or licensee may, with the approval of the Department Head as recommended by the Director, be allowed to transfer, or convey his lease or license agreement to another provided the lessee or licensee has complied with all the requirements of the law and the rules and regulations thereunder promulgated: Provided, further, That the proposed transferee possesses the qualifications and none of the disqualifications to hold a lease or license agreement under the law and this Code: And provided, finally, That there is no evidence that such transfer or conveyance is being made for purposes of speculation and that the transferee shall assume all unpaid forestry accounts of the transferor. (c) Where the lessee or license holder of a lease or license agreement is a partnership or corporation, the transfer of the lease or license agreement to another partnership or corporation may be allowed even before the lapse of the three-year period provided the original partners or stockholders of the transferor shall control at least sixty-six and two-thirds percent (66 2/3%) of the paid-up capital of the transferor. (d) In any event any lessee or license agreement holder who transfers or conveys his or its lease or license agreement shall forever be barred from acquiring another lease or license agreement. (e) The National Assembly may, in the national interest, allow forest products licensees, lessees or permittees to enter into service contracts for financial, technical, management, or other forms of assistance with any foreign person or entity for the exploration, development, exploitation or utilization of the natural resources covered by their licenses, leases or permits. Existing valid and binding service contracts for financial, technical, management or other forms of assistance arc hereby recognized as such.