(1) When any event, act or omission (on the part of the franchised MCS provider) occurs which represents a violation of an integral provision of this chapter, or compromises the corporate character, or legal, financial or technical integrity and/or stability of the multi-channel system or the franchised MCS provider to such a degree that the interests of the subscribers and users are negatively affected, then such event, act or omission may be considered a major breach of this Chapter. Under such circumstances, the Council/franchising authority shall notify the affected MCS provider in writing, of the specific breach, and direct such franchised MCS provider to comply with all such provisions of its proposal, franchise agreement, or this Chapter.

(2) For illustrative purposes only, the events, acts and omissions include, but are not limited to: bankruptcy, insolvency, failure to pay taxes or franchise fees (including the alternative user charge if applicable), failure to receive written Council/franchising authority approval for an assignment or transfer, or failure to abide by the integral terms and conditions of the franchise agreement, or integral provisions of this Chapter.

(3) Where a franchised MCS provider satisfactorily corrects any of the enumerated conditions, within thirty (30) days, then in no event shall the enumerated condition be weighed against such franchised MCS provider in any subsequent review of franchise performance.

(4) A copy of such notice of material breach shall be mailed to the surety on the performance bond.

(5) Within seventy-five (75) days, after such written notice is mailed to a franchised MCS provider, the Council/franchising authority shall conduct a public hearing on the matter.

(6) The Council/franchising authority shall provide written notice to a franchised MCS provider, and the surety, of the time and place of said public hearing in a manner consistent with either State law, or approved by the Council/franchising authority.

(7) At the time of the hearing, the affected franchised MCS provider or may present information on the current status of the alleged breach of the franchise agreement. If the situation has been resolved, or steps are being taken to resolve the situation, then the franchised MCS provider should present the information at the hearing.

(8) If the affected franchised MCS provider fails to attend the hearing, and has not requested a continuance of the hearing, then such franchisee or operator shall be deemed to have waived its right to a further continuation of the matter, and may be declared in default of the franchise agreement.

(9) The Council/franchising authority may, after the public hearing, direct the affected franchised MCS provider to take corrective action within a specified period of time, or may declare such franchised MCS provider in default of the franchise agreement, and thereafter, suspend, revoke, terminate, or cancel the franchise.

(10) If the franchising authority directs corrective action to take place within a specified time or declares such franchised MCS provider in default of the franchise agreement, then that declaration shall be reduced to writing, and the notice of corrective action or default shall be mailed to such franchised MCS provider, and surety, within ten (10) working days of the Council/franchising authority’s action.

(11) If within thirty (30) service days, the affected franchised MCS provider, or surety does not take significant action to rectify the breach, or submit a plan detailing how the affected MCS provider will eliminate the breach, then the Council/franchising authority may revoke such MCS provider’s franchise, and shall notify the affected franchised MCS provider, and surety forthwith.