A. A franchise granted under this chapter shall be a privilege to be held in personal trust by a grantee. It shall not be assigned, transferred, sold or disposed of, in whole or in part, by voluntary sale, sale and leaseback, merger, consolidation or otherwise or by forced or involuntary sale, without prior consent of the council expressed by resolution and then on only such conditions as may therein be prescribed. Any sale, transfer or assignment not made according to the procedures set forth in this chapter shall render the franchise void. The sale, transfer or assignment in bulk of the major part of the tangible assets of the grantee shall be considered an assignment and shall be subject to the provisions of this section.
B. Any sale, transfer or assignment authorized by the council shall be made by a bill of sale or similar document, an executed copy of which shall be filed with the city within 30 days after any such sale, transfer or assignment. The council shall not withhold its consent unreasonably; provided, however, the proposed assignee agrees to comply with all the provisions of this chapter and the franchise and reasonable amendments thereto and must be able to provide proof of legal, technical, financial and character qualifications as determined by the city. The proposed assignee must further agree that it will assume the obligations, liabilities, and responsibility for all acts and omissions, known and unknown, of the previous grantee unless the City, in its sole discretion, expressly waives this requirement in whole or in part.
C. No such consent shall be required for a transfer in trust, mortgage, or other instrument of hypothecation, in whole or in part, to secure an indebtedness except when such hypothecation shall exceed 75 percent of the fair market value of the property used by the grantee in the operation of its cable system. Prior consent of the council, expressed by resolution, shall be required for such transfer and said consent shall not be withheld unreasonably.
D. Prior approval of the council shall be required where ownership or control of 20 percent or more of the right of control of a grantee is acquired during the term of the franchise in any transaction or series of transactions by a person or group of persons acting in concert, none of whom owned or controlled 20 percent or more of such right to control, singularly or collectively on the effective date of the franchise. By its acceptance of a franchise, a grantee specifically grants and agrees that any such acquisition occurring without prior approval of the council shall render the franchise void.
E. The consent of the council to any sale, transfer, lease, trust, mortgage or other instrument of hypothecation shall not constitute a waiver or release of any of the rights of the city under this chapter and the franchise whether arising before or after the date of the a transfer.
F. The grantee's application for approval submitted pursuant to this section shall be processed in accordance with procedures consistent with applicable federal law.
(Prior code § 113.1-20; Amend Coun. J. 12-9-92, p. 25465; Amend Coun. J. 4-24-12, p. 23998, § 1)