In order to have a standing policy regarding application for extension of validity of expired franchises, and in the interest of the public service, this Board shall now adopt the following terms and conditions in the filing of application for extension of validity of expired Certificate of Public Convenience (CPC) of all types of services/denominations.

Accordingly, this Board shall adopt the following terms and guidelines:

1. As a rule, applications for extension of validity should be filed six (6) months prior to the date of expiration of the CPC;

2. As an exemption thereto, only CPCs which expired within one (1) year after the date of the expiration shall be accepted for filing, subject to the following terms and conditions:

2.1 The regular penalty for late filing in the amount of FIVE HUNDRED PESOS (P500.00) per unit and per month shall be charged;

In addition to the above-mentioned regular penalty, the following penalty shall also be imposed:

* Jitneys and Sedans                           - PhP500.00/unit
* AUVs, Vans, Coasters and Mini Buses - PhP750.00/unit
* Buses and Trucks                             - PhP1,000.00/unit

2.2 Those applications which were approved under this category shall not be allowed to file application for sale and transfer and/or dropping and substitution of units within a period of two (2) years from date of issuance of decision, except in the following cases:

* When the purpose of the dropping and substitution is for dropping of phased out unit/s, or in conformity with the modernization standards of the DOTC and this Board;

* When the unit authorized was carnapped/stolen, provided Police Report or Certificate of non Recovery shall be presented;

* When the unit authorized suffered an accident resulting to destructive loss (total wreck), and rendering the said unit unserviceable.

3. This Memorandum Circular shall be effective only up to December 31, 2009. Thereafter, all CPC holders are enjoined to file their Application/s for Extension of Validity within six (6) months prior to the expiry date of the franchise;

4. Failure to file applications for extension of validity within the periods as mentioned in the preceding numbers shall not allow holders of expired CPCs to file Application for Extension of Validity;

5. No Motion to Allow Late Filing of Application for Extension of Validity shall be accepted and entertained by this Board.

However, in case the last day of filing falls on Saturdays, Sundays, holidays or non working days, wherein transaction to the government is not available, the applicant may file on the next working day without any imposable penalty.

For purpose of this Memorandum Circular, the date of filing of the application/petition shall be on the date when the applicant/petitioner has paid the fees assessed by this Board and the receipt of this Board of the application/petition filed.

All issuances inconsistent herewith are hereby superseded and amended accordingly.

This Memorandum Circular shall take effect fifteen (15) days following its publication in newspaper of general circulation or in Official Gazette.

Adopted: 20 Feb. 2009

(SGD.) THOMPSON C. LANTION Chairman
(SGD.) GERARDO A. PINILI Board Member	(SGD.) MA. ELLEN DIRIGE-CABATU Board Member