A. Receivership. Any franchise herein granted shall, at the option of the city, cease and terminate one hundred twenty (120) days after the appointment of a receiver or receivers or trustee or trustees to take over and conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy, or other action or proceeding, unless such receivership or trusteeship shall have been vacated prior to the expiration of said one hundred twenty (120) days or unless:
1. Such receivers or trustees shall have, within one hundred twenty (120) days after their election or appointment, fully complied with all the terms and provisions of this chapter and the franchise granted pursuant hereto, and the receivers or trustees within the one hundred twenty (120) days shall have remedied all material defaults under the franchise; and
2. Such receivers or trustees shall, within the one hundred twenty (120) days, execute an agreement duly approved by the court having jurisdiction in the premises whereby such receivers or trustees assume and agree to be bound by each and every term, provision, and limitation of the franchise.
B. Foreclosure. Subject to the provisions of this chapter permitting a lender to operate the service upon the default of the grantee in its obligations to such lender, in the case of a foreclosure or other judicial sale of the equipment of the grantee, or any part thereof, the city may serve notice of termination upon the grantee and the successful bidder at such sale, in which event the franchise and all rights and privileges of the grantee hereunder shall cease and terminate thirty (30) days after service of such notice, unless:
1. The city council shall have approved the transfer of the franchise in the manner provided by this chapter; and
2. Such successful bidder shall have covenanted and agreed with the city to assume and be bound by all the terms and conditions of the franchise.
(Ord. 2107 §1)