Sec. 22.963  Withdrawal, default and disqualification payments.

    (a) During the course of an auction conducted pursuant to 
Sec. 22.961, the Commission will impose payments on bidders who withdraw 
high bids during the course of an auction, who default on payments due 
after an auction closes, or who are disqualified.
    (b) Bid withdrawal prior to close of auction. A bidder who withdraws 
a high bid during the course of an auction will be subject to a payment 
equal to the difference between the amount bid and the amount of the 
winning bid the next time the license is offered by the Commission. No 
withdrawal payment would be assessed if the subsequent winning bid 
exceeds the withdrawn bid. This payment amount will be deducted from any 
upfront payments or down payments that the withdrawing bidder has 
deposited with the Commission.
    (c) Default or disqualification after close of auction. If a high 
bidder defaults or is disqualified after the close of such an auction, 
the defaulting bidder will be subject to the payment in paragraph (a) of 
this section plus an additional penalty equal to three (3) percent of 
the subsequent winning bid. If the subsequent winning bid exceeds the 
defaulting bidder's bid amount, the 3 percent payment will be calculated 
based on the defaulting bidder's bid amount. These amounts will be 
deducted from any upfront payments or down payments that the defaulting 
or disqualified bidder has deposited with the Commission.
[ 61 FR 58339 , Nov. 14, 1996]