§  1.2106   Submission of upfront payments.

   (a) The Commission may require applicants for licenses subject to
   competitive bidding to submit an upfront payment. In that event, the
   amount of the upfront payment and the procedures for submitting it will
   be set forth in a Public Notice. Any auction applicant that has
   previously been in default on any Commission license or has previously
   been delinquent on any non-tax debt owed to any Federal agency must
   submit an upfront payment equal to 50 percent more than that set for
   each particular license. No interest will be paid on upfront payments.

   (b) Upfront payments must be made by wire transfer in U.S. dollars from
   a financial institution whose deposits are insured by the Federal
   Deposit Insurance Corporation and must be made payable to the Federal
   Communications Commission.

   (c) If an upfront payment is not in compliance with the Commission's
   Rules, or if insufficient funds are tendered to constitute a valid
   upfront payment, the applicant shall have a limited opportunity to
   correct its submission to bring it up to the minimum valid upfront
   payment prior to the auction. If the applicant does not submit at least
   the minimum upfront payment, it will be ineligible to bid, its
   application will be dismissed and any upfront payment it has made will
   be returned.

   (d) The upfront payment(s) of a bidder will be credited toward any down
   payment required for licenses on which the bidder is the high bidder.
   Where the upfront payment amount exceeds the required deposit of a
   winning bidder, the Commission may refund the excess amount after
   determining that no bid withdrawal penalties are owed by that bidder.

   (e) In accordance with the provisions of paragraph (d), in the event a
   penalty is assessed pursuant to §  1.2104 for bid withdrawal or default,
   upfront payments or down payments on deposit with the Commission will
   be used to satisfy the bid withdrawal or default penalty before being
   applied toward any additional payment obligations that the high bidder
   may have.

   [ 59 FR 44293 , Aug. 26, 1994, as amended at  62 FR 13543 , Mar. 21, 1997;
    65 FR 52345 , Aug. 29, 2000]

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