(A) No transfer of effective ownership or control of the CATV system may take place, whether by force or voluntary sale, lease, mortgage, assignment, encumbrance or any other form of disposition, without prior notice to and approval by the Board of Alderpersons. The notice shall include full identifying particulars of the proposed transaction and the Board of Alderpersons shall act by resolution.
(B) The franchisee shall not issue any additional capital stock and shall not permit the transfer of more than 10% of its presently outstanding shares without the prior written consent of the Board of Alderpersons. No sale, lease, assignment or transfer shall be effective until the vendee, lessee, assignee or transferee has filed with the Board its acceptance of this grant.
(D) Prior approval of the Board of Alderpersons shall be required where ownership or control of more than 10% of the right of control of or interest in the franchise is acquired by a person or a group of persons acting in concert, none of whom already own or control 10% or more of the right of control or interest, singularly or collectively; provided, that the Board of Alderperson’s approval shall not be unreasonably withheld after proper application is made therefor.
(E) “Transfer of effective ownership or control” shall not include:
(1) Pledge or hypothecation or mortgage or similar instrument transferring conditional ownership or all or part of the system’s assets to a lender or creditor in the ordinary course of business, so long as the lender does not thereby acquire the right to control the system’s operations, but no transfer of conditional title can be made absolute or become effective without prior approval of the Board of Alderpersons; or
(2) The disposition of facilities or equipment no longer required in the conduct of business.
(F) The franchisee may hypothecate its interest under this chapter and the franchise agreement and in the CATV system to be constructed pursuant thereto for the purpose of securing a loan, the entire proceeds of which will be utilized in construction and operation of its CATV system in the franchise area. All terms and conditions contained in the hypothecation agreement shall be subject to the prior approval of the Board of Alderpersons and the successor in interest shall own and operate the CATV system subject to all provisions of this chapter and the franchise agreement.
(Prior Code, § 4.1-10) (Ord. passed 9-19-1979)