(A) Any franchise awarded hereunder, at the option of the grantor, shall cease and terminate 120 days after the appointment of a receiver or receivers to trustee or trustees to take over and conduct the business of a 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 120 days, or unless:
(1) Such receivers or trustees shall have, within 120 days after their election or appointment, fully complied with all the terms and provisions of this chapter and a franchise granted pursuant hereto, and the receivers or trustees within said 120 days shall have remedied all defaults under a franchise awarded hereunder; and
(2) Such receivers or trustees shall, within said 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 a franchise herein granted.
(B) In the case of a foreclosure or other judicial sale of the system, plant, property, and equipment of a grantee, or any part thereof, including or excluding a franchise, the grantor may serve notice of termination upon a grantee and the successful bidder at such sale, in which event a franchise herein granted and all rights and privileges of a grantee hereunder shall cease and terminate 30 days after service of such notice, unless:
(1) The grantor shall have approved the transfer of a franchise awarded hereunder, as and in the manner in this chapter provided; and
(2) Such successful bidder shall have covenanted and agreed with the grantor to assume and be bound by all terms and conditions of a franchise awarded hereunder.
(2011 Code, § 14.08.120)