§ A291-18. Approval of transfer.

A. 

The grantee shall not sell or transfer its plant or cable television system to another, other than an affiliate, nor transfer any rights acquired under this ordinance or specified in the franchise agreement to another without the Council's prior written approval, following hearing. No sale or transfer of the grantee's assets used in the performance of this franchise shall be effective until the vendee, assignee or lessee has filed in the office of the Borough Secretary an instrument duly executed reciting the fact of such sale, assignment of lease, accepting the terms of the franchise agreement and agreeing to perform all the terms and conditions thereof. The Council's approval shall not be unreasonably withheld and neither this section nor other sections of this ordinance shall preclude the mortgaging, hypothecating or assigning of rights in the system, or the pledge of stock by the grantee for the purpose of financing.

B. 

If a renewal of the grantee's franchise is denied and the Borough either acquires ownership of the cable television system or by its actions effects a transfer of ownership of the cable television system to another party, any such acquisition or transfer shall be at a fair market value, determined on the basis of the cable television system valued as an ongoing concern. If the grantee's franchise is revoked for cause and the Borough acquires ownership of the cable television system or by its actions effects a transfer of ownership of the cable television system to another person, any such acquisition or transfer shall be at an equitable price. In the event of a revocation, at the grantee's request, which shall be made in its sole discretion, the grantee shall be given a reasonable opportunity to effectuate a transfer of its cable television system to a qualified third party at fair market value, determined on the basis of the cable television system valued as an ongoing concern. Until consummation of such transfer, the grantee shall continue to operate pursuant to the terms of its prior franchise; however, in no event shall such authorization exceed a period of time greater than six months from the effective date of such revocation. If, at the end of that time, the grantee is unsuccessful in procuring a qualified transferee or assignee of its cable television system, which is reasonably acceptable to the Borough, the grantee and the Borough may avail themselves of any rights they may have pursuant to federal or commonwealth law. The grantee's continued operation of its cable television system during the six-month period shall not be deemed to be a waiver, nor an extinguishment of, any rights of either the Borough or the grantee.