A. Grantee shall not assign, or transfer control of, the franchise without the prior consent of the council, which consent will not be unreasonably denied. The council shall render its decision within seventy-five (75) days from the date on which consent is requested. Any attempt to assign the franchise without the consent of the council shall be null and void. No such consent shall be required for an assignment: (1) to any affiliate of and entirely owned or controlled by the grantee; (2) any person controlling, controlled by or under common control with the grantee, in each case as of the effective date of the existing franchise; or (3) in trust, mortgage or other hypothecation, in whole or in part, to secure an indebtedness; provided, further, that any such person agrees to be bound by the existing franchise.
B. The requirements of subsection (A) of this section shall apply only to a transfer in the control of grantee. The word "control" as used herein is limited to actual working control in whatever manner exercised. Thus, in the event that grantee is a corporation, prior approval of the council shall be required where ownership or control of more than fifty-one (51) percent of the voting stock is acquired by a person or group of persons acting in concert, none of whom own or control the voting stock of the grantee as of the effective date of the franchise, singularly or collectively.
C. The transferee shall be required to establish that it possesses the legal, financial and technical qualifications to operate and maintain the system and comply with all franchise requirements for the remainder of the term of the franchise. If the transferee demonstrates that it possesses such qualifications, the grantor shall 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 denied or delayed.
D. Any financial institution having a pledge of the franchisee or its assets for the advancement of money for the construction and/or operation of the franchise shall have the right to notify the grantor that it or its designee satisfactory to the grantor shall take control of and operate the cable communications system, in the event of a grantee default in its financial obligations. Further, said financial institution shall also submit a plan for such operation within thirty (30) days of assuming such control that will insure continued service and compliance with all franchise requirements 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 said period of time it shall have the right to petition the grantor to transfer the franchise to another grantee. (Ord. 9527 § 1 (part), 1995: prior code § 3806)