(A) Transfer of franchises. Any franchise granted pursuant to this chapter shall be a privilege to be held for the benefit of the public. Such franchise shall not in any event be sold, transferred, leased, assigned or disposed of, including, but not limited to, by forced or voluntary sale, merger, consolidation, receivership or other means, without the prior consent of the grantor, and then only under such conditions as the grantor may establish. Such consent as required by the grantor, however, shall not be unreasonably withheld.
(B) Ownership or control. The grantee shall promptly notify the grantor of any actual or proposed change in, transfer of or acquisition by any other party of the control of the grantee. The word CONTROL, as used in this division, shall not be limited to major stockholders but shall include actual working control in whatever manner exercised. A rebuttable presumption that a transfer of control has occurred shall arise upon the acquisition or accumulation by any person or group of persons of 10% of the voting shares of the grantee. Every change, transfer or acquisition of control of the grantee shall make the franchise subject to cancellation unless and until the grantor shall have consented thereto which consent shall not be unreasonably withheld. For the purpose of determining whether the grantor shall consent to such change, transfer or acquisition of control, the grantor may inquire into the qualifications of the prospective controlling party, and the grantee shall assist the grantor in any such inquiry.
(C) Foreclosures. The grantor agrees that any financial institution having a pledge of the franchise or its assets for the advancement of money for the construction and/or operation of the franchise, prior to enforcing any right to foreclose, shall have the right to notify the grantor that the financial institution or its designee satisfactory to the grantor will take control and operate the cable television system. Further, such financial institution shall also submit a plan for such operation which will insure continued service and compliance with all franchise obligations during the term the financial institution exercises control over the system. The financial institution shall not exercise control over the system for a period exceeding one year, unless extended by the grantor in its discretion, and during such period of time the financial institution shall have the right to petition the grantor to transfer the franchise to another grantee. If the grantor finds that such transfer, after considering the legal, financial, character, technical and other public interest qualities of the applicant, is satisfactory, the grantor will transfer and assign the rights and obligations of such franchise as in the public interest. The consent of the grantor to such transfer shall not be unreasonably withheld.
(D) Preferences for local organizations. The grantor reserves the right, all other things being equal, in the event of a request for the approval of the transfer of the ownership of the franchise by the grantee, other than pursuant to division (C) of this section, to grant preference to any local not-for-profit organization demonstrating a willingness and capability to meet the terms and amount of the bona fide offer made to the grantee for the purchase of the franchise and network. In no event, however, shall the grantor delay a ruling on any request for the approval of the transfer of the ownership of the franchise by the grantee for more than 30 days after the receipt of such request by the grantor.
(E) Non-waivers of rights. The consent or approval of the grantor to any transfer of the grantee shall not constitute a waiver or release of the rights of the grantor in and to the streets, and any transfer, by its terms, shall be expressly subordinate to the terms and conditions of the franchise.
(F) Substantial completion required. In the absence of extraordinary circumstances, the grantor shall not approve any transfer or assignment of the franchise prior to the substantial completion of the construction of the proposed system.
(G) Obligations of successors in interest. In no event shall a transfer of ownership or control be approved without the successor in interest becoming a signatory to the franchise agreement.
('65 Code, § 7-8.406) (Ord. 244-C.S., passed - - ) Penalty, see § 112.999