(a)
Prior Approval Required. Every franchise shall be deemed to be held in trust, and
to be personal to the franchisee. Any transfer that is made without the prior approval
of the county shall be deemed to impair that trust. A transfer is any transaction
pursuant to which:
(1)
A cable communications system is sold or assigned (except the term does not include
sale of portions of the cable system that are removed);
(2)
There is any change, acquisition or transfer of control of the franchisee or its direct
or indirect parents, whether by merger, consolidation, sale of assets or ownership
interests, or by any other means. A transfer will be deemed to have occurred whenever
there is a change, acquisition or transfer of control of more than a ten percent ownership
in the franchisee or its direct or indirect parents by any entity or a group of entities
acting in concert. However, a transfer also occurs whenever there is a change in actual
working control, in whatever manner exercised, over the affairs of a franchisee or
its direct or indirect parents. Without limiting the above, any change in the general
partners of a franchisee will be presumed a change in control;
(3)
The rights and/or obligations held by the franchisee under the franchise are transferred,
sold, assigned or leased, in whole or in part, directly or indirectly, to another
party.
(b)
Exception for Mortgages. Notwithstanding any other provision of this chapter, pledges
in trust or mortgages of the assets of a cable communications system to secure the
construction, operation or repair of the system may be made without application and
without the county's prior consent. However, no such arrangement may be made if it
would in any respect under any condition: (1) prevent the cable communications system
operator or any successor from complying with the franchise or applicable law; or
(2) permit a third party to succeed to the interest of the operator, or to own or
control the system, without the prior consent of the county. Any mortgage, pledge
or lease shall be subject to and subordinate to the rights of the county under any
franchise, this chapter, or other applicable law.
