# § 547. Conditions of sale
**(a)** If a renewal of a franchise held by a cable operator is denied and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—
**(1)** at fair market value, determined on the basis of the cable system valued as a going concern but with no value allocated to the franchise itself, or
**(2)** in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.
**(b)** If a franchise held by a cable operator is revoked for cause and the franchising authority acquires ownership of the cable system or effects a transfer of ownership of the system to another person, any such acquisition or transfer shall be—
**(1)** at an equitable price, or
**(2)** in the case of any franchise existing on the effective date of this subchapter, at a price determined in accordance with the franchise if such franchise contains provisions applicable to such an acquisition or transfer.
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**Source Credit**: (June 19, 1934, ch. 652, title VI, § 627, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2793.)
## Editorial Notes
### References in Text
For “the effective date of this subchapter”, referred to in subsecs. (a)(2) and (b)(2), as 60 days after , except where otherwise expressly provided, see , set out as an Effective Date note under .
## Statutory Notes and Related Subsidiaries
### Effective Date
Section effective 60 days after , except where otherwise expressly provided, see , set out as a note under .