Sec. 90.905  Withdrawal, default and disqualification payments.

    (a) During the course of an auction conducted pursuant to 
Sec. 90.902, 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exceeds the withdrawn bid.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 (b) of 
this section plus an additional monetary asssessment 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. If 
the default occurs within five (5) business days after the bidding has 
closed, the Commission retains the discretion to offer the license to 
the second highest

[[Page 607]]

bidder at its final bid level, or if that bidder declines the offer, to 
offer the license to other bidders (in descending order of their bid 
amounts) at the final bid levels.