Sec.  25.165   Posting of bonds.

   

   (a) For all satellite licenses issued after September 20, 2004, other
   than DBS licenses, DARS licenses, and replacement satellite licenses
   as defined in paragraph (e), the licensee is required to post a bond
   within 30 days of the grant of its license. Failure to post a bond
   will render the license null and void automatically.

   (1) NGSO licensees are required to post a bond in the amount of $5
   million.

   (2) GSO licensees are required to post a bond in the amount of $3
   million.

   (3) Licensees of satellite systems including both NGSO satellites and
   GSO satellites that operate in the same frequency bands as the NGSO
   satellites are required to post a bond in the amount of $5 million.

   (b) The licensee must use a surety company deemed acceptable within
   the meaning of 31 U.S.C. 9304 et seq. (See, e.g., Department of
   Treasury Fiscal Service, Companies Holding Certificates of Authority
   as Acceptable Sureties on Federal Bonds and As Acceptable Reinsurance
   Companies,  57 FR 29356 , July 1, 1992.) The bond must name the U.S.
   Treasury as beneficiary in the event of the licensee's default. The
   licensee must provide the Commission with a copy of the performance
   bond, including all details and conditions.

   (c) A licensee will be considered to be in default if it fails to meet
   any milestone deadline set forth in Sec. 25.164, and, at the time of
   milestone deadline, the licensee has not provided a sufficient basis
   for extending the milestone.

   (d) A GSO licensee will be permitted to reduce the amount of the bond
   by $750,000 upon successfully meeting a milestone deadline set forth
   in section 25.164(a) of this chapter. An NGSO licensee will be
   permitted to reduce the amount of the bond by $1 million upon
   successfully meeting a milestone deadline set forth in section
   25.164(b) of this chapter.

   (e) A replacement satellite is one that is:

   (1) Authorized to be operated at the same orbit location, in the same
   frequency bands, and with the same coverage area as one of the
   licensee's existing satellites, and

   (2) Scheduled to be launched so that it will be brought into use at
   approximately the same time as, but no later than, the existing
   satellite is retired.

   [ 68 FR 51507 , Aug. 27, 2003, as amended at  69 FR 51587 , Aug. 20, 2004]

Subpart C--Technical Standards

   

   Source:    30 FR 7176 , May 28, 1965;  36 FR 2562 , Feb. 6, 1971, unless
   otherwise noted.