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

    (a) Unless otherwise specified in these rules, auction winners are 
required to pay the balance of their winning bids in a lump sum within 
ten (10) business days following award of the license. Grant of the 
license will be conditioned on full and timely payment of the winning 
bid.
    (b) If a winning bidder withdraws its bid after the Commission has 
declared competitive bidding closed or fails to

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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 Sec. 1.2104(g)(2). In 
such event, the Commission may either re-auction the license to existing 
or new applicants or offer it to the other highest bidders (in 
descending order) at their final bids. The down payment obligations set 
forth in Sec. 1.2107(b) will apply.
    (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 and will be 
liable for the penalty set forth in Sec. 1.2104(g)(2). In such event, 
the Commission will conduct another auction for the license, affording 
new parties an opportunity to file applications for the license.
    (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]