§  1.2109   License grant, denial, default, and disqualification.

   (a) Unless otherwise specified by public notice, auction winners are
   required to pay the balance of their winning bids in a lump sum within
   ten (10) business days following the release of a public notice
   establishing the payment deadline. If a winning bidder fails to pay the
   balance of its winning bids in a lump sum by the applicable deadline as
   specified by the Commission, it will be allowed to make payment within
   ten (10) business days after the payment deadline, provided that it
   also pays a late fee equal to five percent of the amount due. When a
   winning bidder fails to pay the balance of its winning bid by the late
   payment deadline, it is considered to be in default on its license(s)
   and subject to the applicable default payments. Licenses will be
   awarded upon the full and timely payment of winning bids and any
   applicable late fees.

   (b) If a winning bidder withdraws its bid after the Commission has
   declared competitive bidding closed or fails to remit the required down
   payment within ten (10) business days after the Commission has declared
   competitive bidding closed, the bidder will be deemed to have
   defaulted, its application will be dismissed, and it will be liable for
   the default payment specified in § §  1.2104(g)(2) or 1.2104(g)(3),
   whichever is applicable. In such event, the Commission, at its
   discretion, may either re-auction the license(s) to existing or new
   applicants or offer it to the other highest bidders (in descending
   order) at their final bids. If the license(s) is offered to the other
   highest bidders (in descending order), the down payment obligations set
   forth in §  1.2107(b) will apply. However, in combinatorial bidding
   auctions, the Commission will only re-auction the license(s) to
   existing or new applicants. The Commission will not offer the package
   or licenses to the next highest bidder.

   (c) A winning bidder who is found unqualified to be a licensee, fails
   to remit the balance of its winning bid in a timely manner, or defaults
   or is disqualified for any reason after having made the required down
   payment, will be deemed to have defaulted, its application will be
   dismissed, and it will be liable for the payment set forth in
   § §  1.2104(g)(2) or 1.2104(g)(3), whichever is applicable. In such
   event, the Commission may either re-auction the license(s) to existing
   or new applicants or offer it to the other highest bidders (in
   descending order) at their final bids. However, in combinatorial
   bidding auctions, the Commission will only re-auction the license(s) to
   existing or new applicants. The Commission will not offer the package
   or licenses to the next highest bidder.

   (d) Bidders who are found to have violated the antitrust laws or the
   Commission's rules in connection with their participation in the
   competitive bidding process may be subject, in addition to any other
   applicable sanctions, to forfeiture of their upfront payment, down
   payment or full bid amount, and may be prohibited from participating in
   future auctions.

   [ 59 FR 44293 , Aug. 26, 1994, as amended at  62 FR 13544 , Mar. 21, 1997;
    63 FR 2343 , Jan. 15, 1998;  68 FR 42996 , July 21, 2003]

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