W. Va. Code R. § 150-26-13

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 150-26-13 - Notice of Potential Transfers Due to Encumbrances

13.1. In any encumbrance of a cable system's assets whereby all or substantially all of the cable system's assets are pledged as security for a note or subject to a lien to obtain financing, the loan agreement as well as all other security agreements pertinent to the loan agreement shall contain the following disclosures:

13.1.1. "Notwithstanding anything to the contrary in the loan agreement or any other security agreements pertinent to the loan agreement a default or assignment under the agreements does not constitute automatic transfer of the cable system's franchise rights. The appropriate franchise authority's approval must be sought before the transfer of franchise rights in accordance with W. Va. Code '24D-1-1 et seq. and, these rules.

13.1.2. "In the event of an act of default prompting the secured party or lienholder to seek foreclosure, the parties or petitioners agree to notify the proper franchise authority and the Commission within seven (7) days after the default. This notification is to give the franchise authority and the Commission the opportunity to determine if the default would cause inadequate, unsafe, or unreliable service in violation of W. Va. Code '24D-1-1 et seq.

W. Va. Code R. § 150-26-13