DINF Web Posted on December 16, 1997
§ 537. Sales of cable systems
- (a) 3-year holding period required
Except as provided in this section, no cable operator may sell or otherwise transfer ownership in a cable system within a 36-month period following either the acquisition or initial construction of such system by such operator.
- (b) Treatment of multiple transfers
In the case of a sale of multiple systems, if the terms of the sale require the buyer to subsequently transfer ownership of one or more such systems to one or more third parties, such transfers shall be considered a part of the initial transaction.
- (c) Exceptions
Subsection (a) of this section shall not apply to -
- (1) any transfer of ownership interest in any cable system which is not subject to Federal income tax liability;
- (2) any sale required by operation of any law or any act of any Federal agency, any State or political subdivision thereof, or any franchising authority; or
- (3) any sale, assignment, or transfer, to one or more purchasers, assignees, or transferees controlled by, controlling, or under common control with, the seller, assignor, or transferor.
- (d) Waiver authority
The Commission may, consistent with the public interest, waive the requirement of subsection (a) of this section, except that, if the franchise requires franchise authority approval of a transfer, the Commission shall not waive such requirements unless the franchise authority has approved the transfer. The Commission shall use its authority under this subsection to permit appropriate transfers in the cases of default, foreclosure, or other financial distress.
- (e) Limitation on duration of franchising authority power to disapprove transfers
In the case of any sale or transfer of ownership of any cable system after the 36-month period following acquisition of such system, a franchising authority shall, if the franchise requires franchising authority approval of a sale or transfer, have 120 days to act upon any request for approval of such sale or transfer that contains or is accompanied by such information as is required in accordance with Commission regulations and by the franchising authority. If the franchising authority fails to render a final decision on the request within 120 days, such request shall be deemed granted unless the requesting party and the franchising authority agree to an extension of time.
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