§ 73.7005   Holding period.

   (a) Assignments/Transfers. NCE stations awarded by use of the point system
   in § 73.7003 shall be subject to a holding period. From the grant of the
   construction permit and continuing until the facility has achieved four
   years of on-air operations, an applicant proposing to assign or transfer the
   construction permit/license to another party will be required to demonstrate
   the following two factors: that the proposed buyer would qualify for the
   same number of or greater points as the assignor or transferor originally
   received; and that consideration received and/or promised does not exceed
   the assignor's or transferor's legitimate and prudent expenses. For purposes
   of  this  section,  legitimate and prudent expenses are those expenses
   reasonably  incurred  by  the  assignor or transferor in obtaining and
   constructing the station (e.g. expenses in preparing an application, in
   obtaining and installing broadcast equipment to be assigned or transferred,
   etc.). Costs incurred in operating the station are not recoverable (e.g.,
   rent, salaries, utilities, music licensing fees, etc.). Any successive
   applicants proposing to assign or transfer the construction permit/license
   prior to the end of the aforementioned holding period will be required to
   make the same demonstrations.

   (b)  Technical.  In accordance with the provisions of § 73.7002, an NCE
   applicant receiving a decisive preference for fair distribution of service
   is required to construct and operate technical facilities substantially as
   proposed, and can not downgrade service to the area on which the preference
   is based for a period of four years of on-air operations.

   (c)  The holding period in this section does not apply to construction
   permits that are awarded on a non-comparative basis, such as those awarded
   to non-mutually exclusive applicants or through settlement.

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Subpart L—Incorporated Standards

   Source:  76 FR 62642 , Oct. 11, 2011, unless otherwise noted.

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