Section 8
SEC. 8. Upon the acceptance of this franchise as provided in the next preceding section, the grantee shall deposit in the National Treasury or with any of its agents in the Province of Camarines Sur, ten per centum of the value of the investment in cash, in negotiable bonds of the Government of the Philippines or other securities approved by the Secretary of Public Works and Communications, as an earnest of good faith and a guaranty that he will begin the water supply business and may be completely provided with the necessary equipment therefor and ready to begin operation in accordance with the terms of this franchise: Provided, however, That if such deposit is in cash, it may be made in some official depository of the Government in the name of the grantee and subject to the order of the National Treasurer, who shall retain the evidence of the deposit so made. In this case, as well as in the case of the deposit being made in negotiable bonds or other securities, as provided in this section, the interest of the cash deposit or of the bonds or securities deposited, if any, shall belong to the grantee. In case such grantee shall fail, refuse, or neglect, unless prevented by fortuitous cause or force majeure, the public enemy, usurped or military power, martial law, riot, civil commotion, or other inevitable cause, to commence the work for the water supply service within six months from the date of the acceptance of this franchise, or shall fail to provide the necessary equipment and be ready to operate within eighteen months after the date of such acceptance, in accordance with the terms of this franchise, then the deposit prescribed in this section and in the possession of the National Treasurer, whether in cash, bonds, or other securities, shall be forfeited to the provincial government of Camarines Sur, as damages for the breach of the implied contract involved in the acceptance of this franchise. In case the grantee begins to operate the water supply service, and is ready for operation under this franchise, within the time limits specified, the deposit provided for in this section shall, upon recommendation of the Public Service Commission or its legal successor, be returned by the National Treasury to said grantee: Provided, That the time during which such grantee has been prevented from carrying out the terms above mentioned, shall be added to the time granted by this franchise for the fulfillment of its conditions.