---
kind: "section"
citation: "47 U.S.C. § 547"
title: "47"
title_heading: "Telecommunications"
number: "547"
heading: "Conditions of sale"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/47/547"
units:
  - "Chapter 5 — Wire or Radio Communication"
  - "Subchapter V–A — Cable Communications"
  - "Part III — Franchising and Regulation"
---

# §547. Conditions of sale

- (a) If a renewal of a [franchise](/usc/47/522.md?p=9) held by a [cable operator](/usc/47/522.md?p=5) is denied and the [franchising authority](/usc/47/522.md?p=10) acquires ownership of the [cable system](/usc/47/522.md?p=7) or effects a transfer of ownership of the system to another [person](/usc/47/522.md?p=15), any such acquisition or transfer shall be—
  - (1) at fair market value, determined on the basis of the [cable system](/usc/47/522.md?p=7) valued as a going concern but with no value allocated to the [franchise](/usc/47/522.md?p=9) itself, or
  - (2) in the case of any [franchise](/usc/47/522.md?p=9) existing on the effective date of this subchapter, at a price determined in accordance with the [franchise](/usc/47/522.md?p=9) if such [franchise](/usc/47/522.md?p=9) contains provisions applicable to such an acquisition or transfer.
- (b) If a [franchise](/usc/47/522.md?p=9) held by a [cable operator](/usc/47/522.md?p=5) is revoked for cause and the [franchising authority](/usc/47/522.md?p=10) acquires ownership of the [cable system](/usc/47/522.md?p=7) or effects a transfer of ownership of the system to another [person](/usc/47/522.md?p=15), any such acquisition or transfer shall be—
  - (1) at an equitable price, or
  - (2) in the case of any [franchise](/usc/47/522.md?p=9) existing on the effective date of this subchapter, at a price determined in accordance with the [franchise](/usc/47/522.md?p=9) if such [franchise](/usc/47/522.md?p=9) contains provisions applicable to such an acquisition or transfer.

## Source credit

(June 19, 1934, ch. 652, title VI, § 627, as added Pub. L. 98–549, § 2, Oct. 30, 1984, 98 Stat. 2793.)

## Notes

### 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 Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as an Effective Date note under section 521 of this title.

### Statutory Notes and Related Subsidiaries

### Effective Date

Section effective 60 days after Oct. 30, 1984, except where otherwise expressly provided, see section 9(a) of Pub. L. 98–549, set out as a note under section 521 of this title.