5.20.120 Transfers.

(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 city shall be deemed invalid. A transfer is defined in Section 5.20.020 ("Upstream Channel").

(B) Exception for Mortgages. Notwithstanding any other provision of this chapter, pledges in trust, mortgages, or encumbrances against the facilities or any portion thereof of a cable communications system operator given to a bona fide institutional lender in connection with a loan or other financing required to secure the construction, operation, or repair of the facilities ("loan") may be made without application and without the city's prior consent. However, a loan shall require the city's prior consent unless it does each of the following: (1) requires the cable communication system operator or any successor to comply with the franchise or applicable law; or (2) requires the bona fide institutional lender to require the entity operating the cable system on its behalf to comply with each of the terms of the franchise; or (3) prohibits a third party to succeed to the interest of the operator, or to own or control the system, without the prior consent of the city. Any mortgage, pledge or lease shall be subject to and subordinate to the rights of the city under any franchise, this chapter or other applicable law.