A franchise granted by the city shall, at the option of the city, cease and terminate 90 days after the appointment of a receiver or receivers or trustee or trustees to take over and conduct the business of the franchisee, whether in a receivership reorganization, bankruptcy, or other action or proceeding, unless such receivership or trustee shall have been vacated prior to the expiration of the 90 days or unless the following occur:
(A) The receivers or trustees shall have, within 90 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 90 days shall have remedied all defaults under the franchise;
(B) The receivers or trustees shall, within the 90 days, execute an agreement duly approved by the court having jurisdiction whereby the receivers or trustees assume and agree to be bound by each and every term, provision, and limitation of the franchise agreement. In the case of a foreclosure or other judicial sale of the plant, property, and equipment of the system, or any part thereof, the city may serve notice of termination upon the franchisee and the successful bidder at such sale, in which event the franchise and all rights and privileges thereunder shall cease and terminate 30 days after service of the notice, unless the following occur:
(1) The city shall have approved the transfer of the franchise pursuant to the provisions of this chapter; and
(2) The successful bidder shall have entered into an agreement with the city to assume and be bound by all the terms and conditions of the franchise agreement.
(Ord. 96-9, passed 2-26-1996)