Section 12
SEC. 12. As a guaranty that this franchise has been accepted in good faith and that, within twelve months from the date of the granting by the Public Service Commission of a certificate of public necessity and convenience authorizing the construction and operation by the grantee of a long distance telephone line connecting Albay, Camarines Sur and Camarines Norte, the grantee will be fully equipped and ready to operate according to the terms of this franchise such long distance telephone line connecting Albay, Camarines Sur and Camarines Norte and shall furthermore extend its other long distance telephone lines as rapidly as conditions so warrant in the judgment of the grantee, the grantee shall deposit with the Treasurer of the Philippines, within ten days from the granting of such certificate of public necessity and convenience, the sum of twenty-five thousand pesos, or negotiable bonds of the Government of the Philippines or other securities, approved by the Secretary of Public Works and Communications, of the face value of twenty-five thousand pesos: Provided, That if the deposit is made in money, the same shall be deposited at interest in some interest-paying bank approved by the Secretary of Public Works and Communications, and all interest accruing and due on such deposit shall be collected by the Treasurer of the Philippines and paid to the grantee on demand: Provided, further, That if the deposit made with the Treasurer of the Philippines be in negotiable bonds of the Government of the Philippines or other interest-bearing securities approved by the Secretary of Public Works and Communications, the interest on such bonds or securities shall be collected by the Treasurer of the Philippines and paid over to the grantee on demand. Should the grantee, for any other cause than an act of God, public enemy, usurpation by military power, martial law, riot, civil commotion, or other inevitable cause, fail, refuse, or neglect to begin within twelve months from the date of the granting of said certificate of public necessity and convenience the business of transmitting messages by telephone, or fail, refuse, or neglect to be fully equipped and ready to operate within twelve months from the date of the granting of said certificate of public necessity and convenience a long distance telephone line connecting Albay, Camarines Sur and Camarines Norte according to the terms of this franchise, then the deposit prescribed by this section to be made with the Treasurer of the Philippines, whether in money, bonds, or other securities, shall become the property of the National Government as liquidated damages caused to such Government by such failure, refusal, or neglect, and thereafter no interest on said bonds or other securities deposited shall be paid to the grantee. Should the grantee begin the business of transmitting messages by telephone and be ready to operate according to the terms of this franchise a long distance telephone line connecting Albay, Camarines Sur and Camarines Norte within twelve months from the date of the granting of said certificate of public necessity and convenience, then and in that event the deposit prescribed by this section shall be returned by the National Government to the grantee upon recommendation of the Public Service Commission, as soon as the telephone line connecting Albay, Camarines Sur and Camarines Norte has been installed in accordance with the terms of this franchise: Provided, further, That all the time during which the grantee 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.