Section 7
SEC. 7. The grantee shall not commence any construction nor exercise the rights and privileges herein granted without first communicating its acceptance and conformity to the terms and conditions of this franchise to, and making a deposit in an amount of fifty thousand pesos in cash or in negotiable bonds approved by the Central Bank of the Philippines with, the Treasurer of the Philippines. The said deposit shall stand as earnest of good faith on the part of the grantee and as a guarantee that it shall commence the construction of at least one radio broadcasting, or one radio television station in arty city, municipality or municipal district in the Philippines in a substantial manner within a period of three years from the date of the approval of this Act and be completed within five years and the Treasurer of the Philippines shall invest the same in interest-earning securities: Provided, That if within a period of five years after the approval of this Act the grantee shall not have commenced operation in any city, municipality of municipal district, then any person, association or corporation with a franchise to conduct a business similar to that of the grantee may operate and furnish to said city, municipality or municipal district the service offered by the grantee. Six months after the grantee shall have commenced operation in any one municipal district, municipality or city, the said deposit shall be returned to the grantee, together with whatever interests it had earned. Should the grantee fail to communicate its acceptance with the Secretary of Public Works and Communication of the terms and conditions of this franchise as provided in this section, within a period of three hundred sixty days from the approval of this Act, then this franchise shall be deemed ipso facto abandoned and forfeited