to land in new Governor Thorold Masefield's lap by the end of the week.

The Governor must give the controversial Prohibited Restaurants Act the Royal Assent before it is signed into law.

Doubts have been raised over whether the Act -- banning franchises like McDonald's from May 10 last year -- is constitutional because of its retroactive nature.

But it is understood the Governor is likely to opt for signing it and letting the courts examine the constitutional aspect -- if anyone chooses to challenge it.

Acting Premier Jerome Dill said yesterday: "The Governor is going to receive it very shortly.'' Mr. Dill declined to comment on the question marks hanging over the Act's legality.

But he said: "From our point of view, the thing has passed the House on two separate occasions -- on that basis we are in a position to send it on to the Governor.

"How the Governor deals with it is a matter for him, based on the advice he receives.

"If any objection is to be taken to it -- and, quite frankly, I don't know if there will be -- I think the appropriate place for it will be the courts.'' A spokesman for the Governor yesterday confirmed Government House had yet to receive the Act.

The Act -- pushed through the House by rebel United Bermuda Party MP Ann Cartwright DeCouto and four allies with Opposition Progressive Labour Party support -- was voted down 7-4 by Senate last week.

But Senate -- who blocked the Act last June on a 6-4 split -- only had the power to delay it for a year, which means it will automatically go to the Governor via the House.

It is understood the Act had to be signed by the Speaker of the House and run past the Attorney General's Chambers before being sent to the Governor.

The Act was designed to block approval given to Grape Bay Ltd. -- which includes ex-Premier and former MP Sir John Swan and UBP backbencher Maxwell Burgess among its principals -- to operate a McDonald's restaurant on the Island.

The Act sought to ban new restaurants "operated in any manner, whether through distinctive name, design, uniforms, packaging, decorating or otherwise, which reasonably suggests a relationship....with any restaurant outside Bermuda.'' After the bill passed 22-13 in the House two weeks ago, a furious Mr. Burgess slammed the result as "unconstitutional'' and vowed to fight it through the courts -- up to and including Bermuda's final court of appeal, the Privy Council in London, if necessary.

And he later said the Governor should not "make a nonsense'' of the Constitution by signing the Act.

Yesterday, however, he said: "Grape Bay Ltd. is not going to speculate on whether the Governor will or will not sign the bill -- but Grape Bay Ltd. is anxiously awaiting the outcome.'' GOVERNOR GOV