(A) Insolvency proceedings. The franchise granted pursuant to this chapter shall, at the option of Council, cease and terminate 120 days after the appointment of a receiver or trustee, however denominated, designated to take over and conduct the business of the grantee, whether in a receivership, reorganization, bankruptcy or other action or proceeding, unless the receivership or trusteeship has been vacated prior to the expiration of the 120 day period, or unless both of the following conditions are satisfied:
(1) The receivers or trustees have, within 60 days after their election or appointment, fully complied with this chapter, and the franchise granted pursuant hereto, and the receivers or trustees, within the 120 days, have remedied all defaults under the franchise; and
(2) The receivers or trustees shall, within 60 days, execute an agreement duly approved by the court having jurisdiction in the premises, whereby the receivers or trustees assume and agree to be bound by each and every term, provision and limitation of the franchise granted.
(B) Foreclosure or judicial sale. In the case of a foreclosure or other judicial sale of the plant, property and equipment of the grantee, or any part thereof, including or excluding the franchise granted to the grantee, Council may serve notice of termination upon the grantee and the successful bidder at the sale. In this event, the franchise shall cease and terminate within 30 days after service of the notice, unless:
(1) Council has approved the transfer of the franchise as and in the manner provided in this chapter; and
(2) The successful bidder has covenanted and agreed with the city to assume and be bound by all the terms and conditions of the franchise.
(2000 Code, § 5.12.350)