Sec. 1.2111  Assignment or transfer of control: unjust enrichment.

    (a) Reporting requirement. An applicant seeking approval for a 
transfer of control or assignment (otherwise permitted under the 
Commission's Rules) of a license within three years of receiving a new 
license through a competitive bidding procedure must, together with its 
application for transfer of control or assignment, file with the 
Commission's statement indicating that its license was obtained through 
competitive bidding. Such applicant must also file with the Commission 
the associated contracts for sale, option agreements, management 
agreements, or other documents disclosing the local consideration that 
the applicant would receive in return for the transfer or assignment of 
its license. This information should include not only a monetary 
purchase price, but also any future, contingent, in-kind, or other 
consideration (e.g., management or consulting contracts either with or 
without an option to purchase; below market financing).
    (b) Unjust enrichment payment: set-aside. As specified in this 
paragraph an applicant seeking approval for a transfer of control or 
assignment (otherwise permitted under the Commission's Rules) of a 
license acquired by the transferor or assignor pursuant to a set-aside 
for eligible designated entities under Sec. 1.2110(c), or who proposes 
to take any other action relating to ownership or control that will 
result in loss of status as an eligible designated entity, must seek 
Commission approval and may be required to make an unjust enrichment 
payment (Payment) to the Commission by cashier's check or wire transfer 
before consent will be granted. The Payment will be based upon a 
schedule that will take account of the term of the license, any 
applicable construction benchmarks, and the estimated value of the set-
aside benefit, which will be calculated as the difference between the 
amount paid by the designated entity for the license and the value of 
comparable non-set-

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aside license in the free market at the time of the auction. The 
Commission will establish the amount of the Payment and the burden will 
be on the applicants to disprove this amount. No payment will be 
required if:
    (1) The license is transferred or assigned more than five years 
after its initial issuance, unless otherwise specified; or
    (2) The proposed transferee or assignee is an eligible designated 
entity under Sec. 1.2110(c) or the service-specific competitive bidding 
rules of the particular service, and so certifies.
    (c) Unjust enrichment payment: installment financing. An applicant 
seeking approval for a transfer of control or assignment (otherwise 
permitted under the Commission's Rules) of a license acquired by the 
transferor or assignor through a competitive bidding procedure utilizing 
installment financing available to designated entities under 
Sec. 1.2110(d) will be required to pay the full amount of the remaining 
principal balance as a condition of the license transfer. No payment 
will be required if the proposed transferee or assignee assumes the 
installment payment obligations of the transferor or assignor, and if 
the proposed transferee or assignee is itself qualified to obtain 
installment financing under Sec. 1.2110(d) or the service-specific 
competitive bidding rules of the particular service, and so certifies.
    (d) Unjust enrichment payment: bidding credits. An applicant seeking 
approval for a transfer of control or assignment (otherwise permitted 
under the Commission's Rules) of a license acquired by the transferor or 
assignor through a competitive bidding procedure utilizing bidding 
credits available to eligible designated entities under Sec. 1.2110(e) 
or who proposes to take any other action relating to ownership or 
control that will result in loss of status as an eligible designated 
entity, must seek Commission approval and will be required to make an 
unjust enrichment payment (Payment) to the government by wire transfer 
or cashier's check before consent will be granted. The Payment will be 
the sum of the amount of the bidding credit plus interest at the rate 
applicable for installment financing in effect at the time the license 
was awarded. See Sec. 1.2110(e). No payment will be required if the 
proposed transferee or assignee is an eligible designated entity under 
Sec. 1.2110(e) or the service-specific competitive bidding rules of the 
particular service, and so certifies.

Subpart R--Implementation of Section 4(g)(3) of the Communications Act: 
 Procedures Governing Acceptance of Unconditional Gifts, Donations and 
                                Bequests

    Source:  59 FR 38128 , July 27, 1994, unless otherwise noted.