§ 54.515   Distributing support.

   (a) A telecommunications carrier providing services eligible for
   support under this subpart to eligible schools and libraries may, at
   the election of the carrier, treat the amount eligible for support
   under this subpart as an offset against the carrier's universal service
   contribution obligation for the year in which the costs for providing
   eligible services were incurred or receive a direct reimbursement from
   the Administrator for that amount. Carriers shall elect in January of
   each year the method by which they will be reimbursed and shall remain
   subject to that method for the duration of the calendar year. Any
   support amount that is owed a carrier that fails to remit its monthly
   universal service contribution obligation, however, shall first be
   applied as an offset to that carrier's contribution obligation. Such a
   carrier shall remain subject to the offsetting method for the remainder
   of the calendar year in which it failed to remit their monthly
   universal service obligation. A carrier that continues to be in arrears
   on its universal service contribution obligations at the end of a
   calendar year shall remain subject to the offsetting method for the
   next calendar year.

   (b) If a telecommunications carrier elects to treat the amount eligible
   for support under this subpart as an offset against the carrier's
   universal service contribution obligation and the total amount of
   support owed to the carrier exceeds its universal service obligation,
   calculated on an annual basis, the carrier shall receive a direct
   reimbursement in the amount of the difference. Any such reimbursement
   due a carrier shall be submitted to that carrier no later than the end
   of the first quarter of the calendar year following the year in which
   the costs were incurred and the offset against the carrier's universal
   service obligation was applied.

   [ 63 FR 67009 , Dec. 4, 1998]

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