§ 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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