7.04.360 Transfer or Ownership of Control

A franchisee shall not transfer control of its Franchise Agreement or related equipment without prior express approval of the Commission, which shall not be unreasonably withheld. Any transfer of ownership or control of franchisee shall be subject to Chapters 8 and 9 of this chapter.

(a) The grantee shall promptly notify the Commission of any actual or proposed transfer.

(b) Every transfer shall make the Franchise Agreement subject to cancellation unless the Commission shall have consented thereto. For the purpose of determining whether it shall consent to such transfer, the Commission may inquire into the legal, technical, and financial qualifications of the proposed controlling party, consistent with FCC rules, and the grantee shall assist the town in any such inquiry.

(c) Any financial institution having a pledge of the Franchise Agreement or its assets for the advancement of money for the construction and/or operation of the Franchise Agreement shall have the right to notify the Commission that it or its designees satisfactory to the Commission will take control and operate the cable television system. Further, said financial institution shall also submit a plan for such operation that will ensure 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 Commission at its discretion, and during said period of time, it shall have the right to petition for transfer of the Franchise Agreement to another grantee. If the Commission finds that such transfer, after considering the legal, financial, character, technical, and other public interest qualifications of the applicant, is satisfactory, the Commission will transfer and assign the rights and obligations of such Franchise Agreement as in the public interest.

(d) The Commission's consent or approval to any transfer of the grantee shall not constitute a waiver or release of the Commission's rights, and any transfer shall, by its terms, be expressly subject to the terms and conditions of this chapter and the Franchise Agreement.

(e) The Commission shall have one hundred twenty (120) days to act upon any request for approval of such sale or transfer that complies with Federal law and regulation. If the Commission fails to render a final decision on the request within one hundred twenty (120) days, such request shall be deemed granted unless the requesting party and the Commission agree to an extension of time. In the event that the Commission refuses to grant the aforementioned request, it shall set forth specific reasons for its decision in writing.