Upon written application by a franchisee, the lender, and any and all signatures or guarantors upon the proposed loan, the board of directors of the cable television commission may, in its sole discretion, from time to time, consent by duly adopted resolution to the sale, transfer, assignment, mortgage, pledge, lease, sublease or other encumbrance upon real or personal property mandatorily included by Section 5.28.560 of this chapter within a purchase which the commission or its assignee is authorized to make or upon a franchise issued pursuant to the provisions of this chapter, for the purpose of securing a loan of capital or constituting a purchase money security interest. Such information concerning the identity and background of the lender, terms of the transaction, intended expenditure of the capital, and other matters relating to the transaction shall be provided as is required by the board or its authorized representative. If, in its sole discretion, the board of directors elects to approve such encumbrance or encumbrances, such approval may be granted upon such terms and conditions as the board determines to be appropriate including, but not limited to, the following:
A. The purpose for which the capital to which the encumbrance relates will be utilized, including guarantees relating to expenditure or disposition of such capital;
B. The terms and conditions of encumbrance instruments relating to such matters as default, and the rights of the lender and successors in interest in relation thereto;
C. The amount of the encumbrance and types of properties encumbered;
D. Subordination of the encumbrance to the rights of the county, cities and commission under the franchise, consistent with the terms and conditions of the encumbrancy approved by the board; and
E. An agreement by any party in whose name the loan secured by the encumbrance is made or any signator or guarantor thereon to be bound by the terms, conditions, provisions and requirements of the franchise documents, in addition to the party or parties whose names the franchise is issued by the resolution offering the franchise and certificate of acceptance.
The board of directors of the commission shall by resolution be authorized to delegate to its executive director power to consent in writing to such encumbrances for financing purposes of individual items of property described by Section 5.28.560(C) of this chapter subject to limitations prescribed. (Prior code § 20.09.752)