Second Authority for Television and Radio Law, 5750-1990
חוק הרשות השניה לטלויזיה ורדיו, התש"ן–1990
Published: 1990-02-13Last amended 2026-07-28✓ Amendment status checked against the Knesset legislation record on 2026-09-09
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Section F: Restrictions during the Deferral of Obligations Period
Restrictions during the Deferral of Obligations Period§
71c.
A franchise holder in respect of whom the date of payment of a debt that he was required to pay pursuant to this Law before the day of commencement of Amendment No. 32, or the date of the expenditure that he was required to incur pursuant to this Law before that date, were deferred in accordance with the provisions of Amendment No. 32, shall not make a distribution as defined in the Companies Law, 5759-1999, and shall not repay a loan granted to him by an interested party, for so long as he has not paid the full debt or incurred the full expenditure.
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Contact Us →Section G: Transitional Provisions from Television Broadcasting Franchises to Television Broadcasting Licences
Television broadcasting licence for holders of television broadcasting franchises on Channel 2§
71d.
(a)In this section –
"franchise holder" – a holder of a television broadcasting franchise on Channel 2;
"income difference" – the difference between the amount of the projected income of a franchise holder, in a particular year, as determined in accordance with rules set by the Council under sections 24(a), 59 or 60, and the amount of the franchise holder's actual income in that year;
"valuation" – a valuation of the Channel 2 news company as carried out by the Authority in accordance with the provisions of subsection (n);
"content obligations" – the provisions under this Law, the Council's rules or the conditions of the franchise, that concern the scope of broadcasting hours of programmes that the franchise holder was required to broadcast, or the expenditure that it was required to incur for the purpose of financing the production and acquisition of programmes or for the purpose of producing Israeli films, excluding expenditure on the current operation of the news company or expenditure on the acquisition of news broadcasts approved under section 63a1;
"eligible to apply for a licence" – any of the following:
(1)a holder of a television broadcasting licence;
(2)a person who has submitted to the Council an application to receive a television broadcasting licence and who, in the Council's opinion, meets the conditions set out in section 33a(a)(1) and (3) and the rules set by the Council under section 33a(c), to the extent that rules have been so set, and who does not meet the conditions referred to in section 33a(b) or the restrictions set by the Council in those rules;
(3)a person to whom the Council's notice referred to in subsection (h) has been given.
(b)A franchise holder may submit to the Council, by the date it has set, which shall be no later than one year before the transition date, an application to receive a television broadcasting licence; the commencement of the validity of a licence granted pursuant to such an application shall be on the transition date.
The Second Authority for Television and Radio Rules (Date for Submitting an Application to Receive a Television Broadcasting Licence), 5771-2011, have been published.
(c)If a franchise holder has not submitted an application for a television broadcasting licence by the date referred to in subsection (b), it may submit such an application to the Council if the consent of the other television broadcasting franchise holder has been given – from the transition date, provided that such an application is submitted no later than one year before the expiry of its franchise period.
(d)Subject to the provisions of subsection (e) or (f), the Council may grant a television broadcasting licence to a person who has submitted an application under subsections (b) or (c), if that person meets the conditions referred to in section 33a(a) and the rules set by the Council under section 33a(c), to the extent that rules have been so set, and does not meet the conditions referred to in section 33a(b) or the restrictions set by the Council in those rules; however, for the purposes of section 41(b2), the applicant shall not be regarded as another franchise holder as defined in paragraph (9) of that section, and for the purposes of section 56(a)(1), the applicant shall not be regarded as a holder of a television broadcasting franchise, solely by reason of being a franchise holder.
(e)Notwithstanding the provisions of section 33a(b)(1), if the Council finds that a person who has submitted an application under subsection (b) did not fulfil the content obligations during the franchise period, it may grant that person a television broadcasting licence, provided that all of the following have been met:
(1)with regard to the content obligations not fulfilled during the franchise period and up to the day of commencement of Amendment No. 33 – the franchise holder has submitted to the Council for its approval a detailed plan including stages of action for the completion, by the 18th of Heshvan 5776 (31 October 2015), of the obligations referred to, which it shall be required to fulfil, as a licence holder, in addition to all the obligations and conditions that will apply to it under this Law, the Council's rules and the conditions of the licence;
(2)with regard to the content obligations not fulfilled during the franchise period and arising from the income difference – the franchise holder has submitted to the Council for its approval a detailed plan including stages of action for the completion, within 36 months of the date of commencement of the validity of the licence, of the obligations referred to, which it shall be required to fulfil, as a licence holder, in addition to all the obligations and conditions that will apply to it under this Law, the Council's rules and the conditions of the licence;
(3)the Council has approved the plans under paragraphs (1) and (2);
(4)the franchise holder has furnished the Authority with an autonomous bank guarantee in the amounts required for the implementation of the plans under paragraphs (1) and (2), to secure their implementation, in addition to the guarantees furnished to the Authority under section 33a(a)(2); the Director shall instruct the franchise holder regarding the form of the autonomous bank guarantee.
(f)Notwithstanding the provisions of section 33a(b)(1), if the Council finds that a franchise holder who has submitted an application under subsection (c) did not fulfil content obligations during the franchise period or did not pay its debts in respect of franchise fees, distribution fees or royalties, as detailed in paragraphs (1) to (3), it may grant that person a television broadcasting licence if the conditions in those paragraphs are met, as the case may be:
(1)with regard to the content obligations that the franchise holder did not fulfil during the franchise period and which it is entitled to defer under section 62c(a)(3) – the franchise holder has given the Council notice as referred to in the concluding part of section 62c(a)(3), and has also submitted to the Council for its approval, at the time of submitting the application for a television broadcasting licence, a detailed plan including stages of action for the completion, within six years of the date of commencement of the validity of the licence, of the obligations referred to in section 62c(a)(3), which it shall be required to fulfil, as a licence holder, in addition to all the obligations and conditions that will apply to it under this Law, the Council's rules and the conditions of the licence;
(1a)with regard to the content obligations that the franchise holder did not fulfil during the period from the day of commencement of Amendment No. 37 to the day of commencement of Amendment No. 39 – the Council was satisfied, for reasons that shall be recorded, that the severity of the breach and the circumstances thereof do not justify the refusal to grant the licence; if the breach has not been remedied by the time of submission of the application under subsection (c), the Council shall instruct the franchise holder to remedy the breach within a reasonable period of time; if the Council has instructed the remedying of the breach as aforesaid, the franchise holder shall furnish an autonomous bank guarantee in the amount of the breach, to secure its remedying, in accordance with the conditions that the Director shall specify;
(2)with regard to the content obligations that the franchise holder did not fulfil during the franchise period and which arise from the income difference – the conditions enumerated in subsection (e)(2) to (4) are met with respect to the franchise holder, with the necessary modifications;
(3)with regard to debts in respect of franchise fees, distribution fees or royalties that the franchise holder was liable to pay under Section A of Chapter VIII before the day of commencement of Amendment No. 39 – the Council was satisfied that the franchise holder paid its debts as aforesaid by the day of commencement of that Amendment.
(g)
(1)If the Council finds that a franchise holder who has submitted an application under subsection (b) or (c) has committed a negligible breach of a provision under this Law, the Council's rules or the conditions of the franchise, as referred to in the concluding part of section 33a(b)(1), and the breach is remediable, it shall instruct the franchise holder to remedy the breach during a period that it shall set and that shall not exceed one year from the date on which the instruction was given (in this subsection – the breach remediation period).
(2)If the Council has instructed the remedying of a breach as referred to in paragraph (1), the franchise holder shall furnish an autonomous bank guarantee in the amount of the breach, to secure its remedying, in accordance with the conditions that the Director shall specify.
(3)If the breach has not been remedied during the breach remediation period and a television broadcasting licence has not yet been granted to the franchise holder, no such licence shall be granted to it.
(h)If a franchise holder has submitted an application under subsection (b) or (c), the Council shall notify it within three months of the date of submission of the application whether it meets the provisions of the sections listed in subsection (d), except for the provisions of section 33a(a)(2); if the Council has notified the franchise holder that it meets those provisions, it shall be regarded as eligible to apply for a channel for the purposes of the provisions of section 37d, and the following provisions shall apply:
(1)the publication of the public notice under section 37d(b) shall be, in respect of a person who submitted an application under subsection (b) – nine months before the transition date, and in respect of a person who submitted an application under subsection (c) – nine months before the expiry of the franchise period;
(2)the Council's decision or determination under section 37d(b)(3) shall be given, in respect of a person who submitted an application under subsection (b) – no later than six months before the transition date, and in respect of a person who submitted an application under subsection (c) – no later than six months before the expiry of the franchise period.
(i)If the Council's notice referred to in subsection (h) has been given to a franchise holder who submitted an application under subsection (b), its franchise shall expire on the transition date.
(i1)If the Council's notice referred to in subsection (h) has been given to a franchise holder who submitted an application under subsection (c), its franchise shall expire on the date of entry into force of the licence.
(j)
(1)If the franchise of one of the franchise holders has expired or been revoked, on or after the transition date (in this subsection – the former franchise holder), the remaining franchise holder may also broadcast in the broadcasting unit in which the former franchise holder broadcast, provided that it has undertaken to fulfil one of the following, in addition to its obligations as a holder of a television broadcasting franchise under the provisions of this Law, the Council's rules and the conditions of the franchise (in this subsection – its existing obligations) –
(a)all the obligations of the former franchise holder under the provisions of this Law, the Council's rules and the conditions of the franchise, with the adaptations that the Council shall direct;
(b)obligations the total amount of which is equal to the product of the existing obligations multiplied by the ratio between the broadcasting unit allocated to the former franchise holder and the broadcasting unit allocated to the remaining franchise holder up to the transition date.
(2)If the remaining franchise holder has elected as referred to in paragraph (1) not to broadcast in the broadcasting unit in which the former franchise holder broadcast, the Authority shall publish, notwithstanding the provisions of sections 33(a) and 38, an open tender for the grant of a television broadcasting franchise for the broadcasting unit in which the former franchise holder broadcast, and the period of validity of such a franchise shall be as prescribed in section 34(b2); the provisions of Section B of Chapter III shall apply to such a tender.
(k)If the franchise holders have not notified the Council of their intention to hold the Channel 2 news company jointly in accordance with the provisions of subsection (m), and no franchise holders remain on or after the transition date, the Authority shall carry out a valuation and shall publish a public notice of its intention to allow a holder of a television broadcasting licence to acquire the said news company, as well as of the amount of the valuation, and the following provisions shall apply:
(1)if one only of those who were franchise holders up to the date on which no franchise holders remained as aforesaid (in this subsection – a former franchise holder), who is eligible to apply for a licence, requests to acquire the Channel 2 news company, by the date directed by the Authority, that person shall pay the Authority for such acquisition the amount of the valuation, and shall also pay the other former franchise holder, for the acquisition of its proprietary shares in the Channel 2 news company, the amount of the value of those proprietary shares as calculated by the Authority in accordance with the provisions of subsection (n);
(2)if two former franchise holders who are eligible to apply for a licence request to acquire the Channel 2 news company, by the date directed by the Authority, the Authority shall publish a tender between them in respect of the acquisition of the news company, the minimum bid that may be submitted in which shall be in the amount of the valuation; the provisions of section 40 shall apply to such a tender, with the necessary modifications, and the Council may set rules in respect of the tender proceedings under this paragraph, including in respect of the manner of submission of bids and their handling; the winner of the tender shall pay the Authority for such acquisition the amount of its bid, and shall pay the former franchise holder that did not win the tender, for the acquisition of its proprietary shares in the Channel 2 news company – the amount of the value of those proprietary shares as calculated by the Authority in accordance with the provisions of subsection (n);
(3)if no request to acquire the Channel 2 news company has been submitted under paragraphs (1) or (2), the Authority shall publish a public notice of its intention to permit a holder of a television broadcasting licence who is not a former franchise holder to acquire the Channel 2 news company, and the provisions of those paragraphs shall apply with the following modifications:
(a)in paragraph (1), instead of "a former franchise holder who is eligible to apply for a licence" read "a person eligible to apply for a licence who is not a former franchise holder", and instead of "to the other former franchise holder" read "to the former franchise holders";
(b)in paragraph (2), instead of "two former franchise holders who are eligible to apply for a licence" read "two or more persons eligible to apply for a licence who are not former franchise holders", and instead of "and to the former franchise holder that did not win the tender for the acquisition of its proprietary shares" read "to the former franchise holders, for the acquisition of their proprietary shares".
(l)Notwithstanding the provisions of subsection (k), if the Authority has seen, inter alia following the submission of an application under subsection (b) or (c), that on or after the transition date no television broadcasting franchise holders on Channel 2 will remain, and the franchise holders have not notified the Council of their intention to hold the Channel 2 news company jointly in accordance with the provisions of subsection (m), the Authority shall publish a public notice under the provisions of subsection (k) and shall commence proceedings under that subsection immediately, such that the Council's decision regarding the selection of the winner of the tender under subsection (k)(2) or (3)(b), to the extent that such a tender is conducted, shall be given no later than three months before that date.
(m)Notwithstanding the provisions of subsections (k) and (l), if both franchise holders have submitted applications to receive a television broadcasting licence in accordance with the provisions of subsection (b), or both have submitted such applications under subsection (c), and the Council has notified both of them that they meet the provisions referred to in subsection (h), the franchise holders may notify the Council in writing within seven days of the Council's notice, of their intention to jointly acquire the Channel 2 news company and to hold it jointly (in this section – the jointly held news company), for a period not exceeding three years from the day of commencement of the validity of the television broadcasting licences, and the following provisions shall apply:
(1)the Authority shall carry out a valuation of the Channel 2 news company, and each of the franchise holders that has notified the Council of joint acquisition and holding as aforesaid (in this section – the joint holders) shall pay the Authority for such acquisition, before the commencement of the validity of the licences, one half of the valuation amount;
(2)
(a)the jointly held news company shall broadcast at the scope of hours and in the format of news broadcasts as they were on the eve of the commencement of Amendment No. 33; the amount of expenditure on news broadcasts as aforesaid shall not be less than the amount of expenditure on news broadcasts of the Channel 2 news company incurred by the franchise holders on the eve of the commencement of Amendment No. 33;
(b)the Council, with the approval of the Economics Committee of the Knesset, may, at the request of a licence holder, modify the scope of hours of news broadcasts of the jointly held news company;
(3)the joint holders shall notify the Authority, no later than six months before the expiry of the joint holding period, whether they have reached an agreement as to which of them shall acquire the other's share in the jointly held news company and regarding the amount of the consideration to be paid for such acquisition, including for the acquisition of the other's proprietary shares in the jointly held news company;
(4)if the joint holders' notice referred to in paragraph (3) has not been given to the Authority by the expiry of the period referred to therein, or if a notice has been given to the Authority by the joint holders stating that they no longer wish to hold the jointly held news company jointly, the Authority shall publish, within 30 days, a tender in respect of the acquisition of the jointly held news company in which persons eligible to apply for a licence may participate; the Authority shall notify its decision regarding the winner of the tender within three months of the date of its publication; the provisions of section 40 shall apply to such a tender, with the necessary modifications, and the Council may set rules in respect of the tender proceedings under this paragraph, including in respect of the manner of submission of bids and their handling; the winner of the tender shall transfer to the Authority the amount of the consideration it offered in the tender for such acquisition, including for the acquisition of the proprietary shares of the joint holders in the jointly held news company, and the Authority shall transfer one half of the consideration to each of the joint holders;
(5)with regard to news broadcasts by means of the jointly held news company, the provisions of Section D shall apply and also, subject to the provisions of paragraph (2), the provisions of the Second Schedule relating to news broadcasts of a holder of a television broadcasting licence, with the necessary modifications and with the following modifications:
(a)in section 63(a), instead of "only" read "and to the provisions of section 71d(m)";
(b)in section 63a(c), instead of "which shall be established and operate in accordance with the provisions of this Section" read "which shall operate in accordance with the provisions of this Section and the provisions of section 71d(m)";
(c)in section 66, after subsection (b) read: "(b1) The proportionate share of each joint holder in the voting shares and in the proprietary shares allocated under subsection (a)(2) shall be fifty per cent.";
(d)in the Second Schedule, in sections 3 and 4, everywhere, instead of "and also a holder of a television broadcasting licence" read "and also the joint holders as their meaning in section 71d(m), in equal shares between them".
(n)The Authority shall carry out a valuation of the Channel 2 news company, according to a calculation method that it shall decide upon, based, inter alia, on the value of the assets, rights, debts, engagements and benefits of any kind of the Channel 2 news company, less the value of the proprietary shares in the Channel 2 news company and the value of the registered or unregistered trade marks that were used by the Channel 2 news company, as referred to in section 63a(d).
Licence for a Holder of a Television Broadcasting Franchise on Channel Three§
71e.
(a)In this section –
"the franchise holder" – a holder of a television broadcasting franchise on Channel Three;
"the content-area obligations" and "the revenue shortfall" – as defined in section 71d;
"eligible to apply for a licence" – any of the following:
(1)a holder of a television broadcasting licence;
(2)a person who has submitted to the Council an application for a television broadcasting licence and in the Council's opinion satisfies the requirements set out in section 33a(a)(1) and (3) and in the rules laid down by the Council under section 33a(c), to the extent that such rules have been laid down, and does not satisfy the conditions set out in section 33a(b) or the restrictions laid down by the Council in those rules;
(3)a person to whom the Council's notice referred to in subsection (f) has been delivered.
(b)The franchise holder may submit to the Council, by a date determined by the Council that shall be no later than one year before the transition date, an application for a television broadcasting licence; the commencement of the validity of a licence granted pursuant to such an application shall be on the transition date.
The Second Authority for Television and Radio (Deadline for Submitting an Application for a Television Broadcasting Licence) Rules, 5771-2011 have been published.
(b1)Where the franchise holder's franchise has been extended pursuant to the provisions of section 37c(b1), the franchise holder may submit to the Council an application for a television broadcasting licence during a period to be determined, and no later than the end of the franchise period; the commencement of the validity of a licence granted pursuant to such an application shall be upon the expiry of the franchise period under section 37c(b1).
The Second Authority for Television and Radio (Final Deadline for Submitting an Application for a Television Broadcasting Licence by a Holder of a Franchise on Channel Three) Rules, 5775-2015 have been published.
(c)Subject to the provisions of subsection (d) or (d1), the Council may grant a television broadcasting licence to a person who has submitted an application under subsection (b) or (b1) if that person satisfies the conditions set out in section 33a(a) and in the rules laid down by the Council under section 33a(c), to the extent that such rules have been laid down, and does not satisfy the conditions set out in section 33a(b) or the restrictions laid down by the Council in those rules; however, for the purposes of section 41(b2), the applicant shall not be regarded as another franchise holder as defined in paragraph (9) of that section, and for the purposes of section 56(a)(1), the applicant shall not be regarded as a holder of a television broadcasting franchise, solely by reason of being the franchise holder.
(d)Notwithstanding the provisions of section 33a(b)(1), where the Council has found that a person who submitted an application under subsection (b) did not fulfil the content-area obligations during the franchise period, the Council may grant that person a television broadcasting licence, provided that all of the following conditions have been met:
(1)with regard to the content-area obligations that were not fulfilled during the franchise period up to the day of commencement of Amendment No. 33 – the franchise holder has submitted to the Council for its approval a detailed plan including stages of action for the completion, by the 26th of Shevat 5774 (27 January 2014), of the said obligations which the franchise holder will be required to fulfil, as a licence holder, in addition to all the obligations and conditions that will apply to the franchise holder under this Law, the Council's rules and the terms of the licence;
(2)with regard to the content-area obligations that were not fulfilled during the franchise period and that arise from the revenue shortfall – the franchise holder has submitted to the Council for its approval a detailed plan including stages of action for the completion, within 36 months from the date of commencement of the validity of the licence, of the said obligations which the franchise holder will be required to fulfil, as a licence holder, in addition to all the obligations and conditions that will apply to the franchise holder under this Law, the Council's rules and the terms of the licence;
(3)the Council has approved the plans referred to in paragraphs (1) and (2);
(4)the franchise holder has furnished the Authority with an autonomous bank guarantee in the amounts required for the execution of the plans referred to in paragraphs (1) and (2), to secure their execution, in addition to the guarantees furnished to the Authority under section 33a(a)(2); the Director shall instruct the franchise holder as to the text of the autonomous bank guarantee.
(d1)Notwithstanding the provisions of section 33a(b)(1), where the Council has found that a franchise holder who submitted an application under subsection (b1) did not fulfil content-area obligations during the franchise period, did not pay debts in respect of franchise fees, distribution fees or royalties, or violated the provision of section 3a, as set out in paragraphs (1) to (4), the Council may grant that franchise holder a television broadcasting licence where the matters set out in those paragraphs, as the case may be, have been fulfilled:
(1)with regard to the content-area obligations that were not fulfilled during the franchise period up to the day of commencement of Amendment No. 39 – the Council was satisfied, for reasons that shall be recorded, that the severity of the violation and its circumstances do not justify the refusal to grant the licence; where the violation has not been remedied by the date of submission of the application under subsection (b1), the Council shall instruct the franchise holder to remedy the violation within a reasonable period of time; where the Council has so instructed that the violation be remedied, the franchise holder shall furnish an autonomous bank guarantee in the amount of the violation, to secure its remedy, in accordance with the conditions on which the Director shall instruct;
(2)with regard to content-area obligations that the franchise holder did not fulfil during the franchise period and that arise from the revenue shortfall – the conditions listed in subsection (d)(2) to (4) are met with respect to the franchise holder, with the necessary modifications;
(3)with regard to debts in respect of franchise fees, distribution fees or royalties that the franchise holder was required to pay under Section A of Chapter VIII prior to the day of commencement of Amendment No. 39 – the Council was satisfied that the franchise holder paid those debts by the day of commencement of that amendment;
(4)with regard to a violation of the provision of section 3a – the Council was satisfied that the franchise holder transferred the registered office of the Channel Three news company to Jerusalem no later than the 26th of Elul 5773 (1 September 2013), in accordance with the franchise holder's undertaking under section 37c(b1)(3).
(e)
(1)Where the Council has found that the franchise holder who submitted an application under subsection (b) or (b1) committed a negligible violation of a provision under this Law, the Council's rules or the terms of the franchise, as referred to in the proviso to section 33a(b)(1), and the violation is capable of being remedied, the Council shall instruct the franchise holder to remedy the violation during a period to be determined by the Council, which shall not exceed one year from the date of giving the said instruction (in this subsection – the violation remedy period).
(2)Where the Council has instructed that a violation be remedied as referred to in paragraph (1), the franchise holder shall furnish an autonomous bank guarantee in the amount of the violation, to secure its remedy, in accordance with the conditions on which the Director shall instruct.
(3)Where the violation has not been remedied during the violation remedy period and before a television broadcasting licence has been granted to the franchise holder, such a licence shall not be granted to the franchise holder.
(f)Where the franchise holder has submitted an application under subsection (b) or (b1), the Council shall notify, during a period to be determined by the Council and no later than the expiry of the franchise period, whether the franchise holder satisfies the provisions of the sections listed in subsection (c), other than the provisions of section 33a(a)(2); where the Council has so notified the franchise holder that the franchise holder satisfies those provisions, the franchise holder shall be regarded as eligible to apply for a channel for the purposes of the provisions of section 37d, and the following provisions shall apply:
(1)the publication of the public notice under section 37d(b) shall be, with regard to a person who has submitted an application under subsection (b) – nine months before the transition date, and with regard to a person who has submitted an application under subsection (b1) – two months before the end of the franchise period;
(2)the Council's decision or determination under section 37d(b)(3) shall be given, with regard to a person who has submitted an application under subsection (b) – no later than six months before the transition date, and with regard to a person who has submitted an application under subsection (b1) – no later than one month before the end of the franchise period.
(g)Where the Council's notice referred to in subsection (f) has been delivered to a franchise holder who submitted an application under subsection (b), the franchise holder's franchise shall expire on the transition date.
(h)The Minister may, notwithstanding the provisions of section 63a(d) and the provisions of section 6u1(f) of the Communications Law, permit a person who was the holder of a television broadcasting franchise on Channel Three (in this section – the previous franchise holder), and whom the Council has found to be eligible to apply for a licence, to continue to use, as a licence holder, the channel on which the previous franchise holder broadcast during the franchise period, the intangible assets of the Authority and the registered or unregistered trade marks that served the Channel Three news company, until the date on which there are no longer any holders of television broadcasting franchises on Channel 2; a previous franchise holder whom the Minister has permitted to make such use shall pay for the use, before the commencement of the validity of the television broadcasting licence, a one-time sum to be determined by the Council with the approval of the Minister and the Minister of Finance.
(i)The Authority shall carry out a valuation of the Channel Three news company, in accordance with the provisions of subsection (j) (in this section – the valuation), and shall publish, no later than one month before the end of the television broadcasting franchise period on Channel Three, a public notice of its intention to enable a holder of a television broadcasting licence to acquire the Channel Three news company, and of the amount of the valuation, and the following provisions shall apply:
(1)where the previous franchise holder who is eligible to apply for a licence has requested to acquire the Channel Three news company, by the date instructed by the Authority, the previous franchise holder shall pay the Authority for such acquisition the amount of the valuation;
(2)where no application to acquire the Channel Three news company has been submitted under paragraph (1), the Authority shall publish a public notice of its intention to permit a holder of a television broadcasting licence who is not the previous franchise holder to acquire the Channel Three news company, and the following provisions shall apply:
(a)where only one person eligible to apply for a licence who is not the previous franchise holder has requested to acquire the Channel Three news company, by the date instructed by the Authority, that person shall pay the Authority for such acquisition the amount of the valuation, and shall also pay the previous franchise holder, for the acquisition of the previous franchise holder's property shares in the Channel Three news company, the amount of the value of those property shares as calculated by the Authority in accordance with the provisions of subsection (j);
(b)where two or more persons eligible to apply for a licence who are not the previous franchise holder have requested to acquire the Channel Three news company, by the date instructed by the Authority, the Authority shall publish a tender among them for the acquisition of the news company, in which the minimum offer that may be submitted shall be in the amount of the valuation; the provisions of section 40 shall apply to such a tender, with the necessary modifications, and the Council may lay down rules concerning the tender proceedings under this paragraph, including concerning the manner of submission of offers and their handling; the Council's decision regarding the selection of the tender winner shall be given no later than three months before the transition date; the tender winner shall pay the previous franchise holder, for the acquisition of the previous franchise holder's property shares in the Channel Three news company, the amount of the value of those property shares as calculated by the Authority in accordance with the provisions of subsection (j).
(j)The Authority shall carry out a valuation of the Channel Three news company, according to a calculation method to be decided upon by the Authority, based, inter alia, on the value of the assets, rights, debts, engagements and benefits of any kind of the Channel Three news company, less the value of the property shares in the Channel Three news company and the value of the registered or unregistered trade marks that served the Channel Three news company as referred to in section 63a(d).
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