Sec. 101.1108  Installment payments for licenses won by small businesses 
          and entities with average gross revenues of not more than $75 
          million.

    (a) A winning bidder that qualifies as a small business pursuant to 
Sec. 101.1112 must submit to the Commission a down payment of 20 percent 
of the net auction price for the license pursuant to Sec. 101.1105(c) 
and may pay the remaining 80 percent of the net auction price for the 
license in installment payments over the term of the license. Interest 
shall be imposed based on the rate for ten-year U.S. Treasury 
obligations applicable on the date the license is granted, plus 2.5 
percent. Payments shall include interest only for the first two years 
and payments of interest and principal amortized over the remaining 
eight years of the license term.
    (b) A winning bidder that has average gross revenues for the three 
preceding years of more than $40 million but not more than $75 million 
pursuant to Sec. 101.1112 must submit to the Commission a down payment 
of 20 percent of the net auction price for the license pursuant to 
Sec. 101.1105(c) and may pay the remaining 80 percent of the net auction 
price for the license in installment payments. Interest shall be imposed 
based on the rate for ten-year U.S. Treasury obligations applicable on 
the date the license is granted, plus 2.5 percent. Payment of interest 
and principal shall be amortized over the ten years of the license term.
    (c) Unjust enrichment. A licensee that utilizes installment 
financing and that seeks to assign or transfer control of a license to 
an entity not meeting the eligibility standards for installment payments 
must pay not only unpaid principal but also any unpaid interest accrued 
through the date of assignment or transfer as a condition of Commission 
approval. If a licensee that utilizes installment financing seeks to 
assign or transfer control of a license to an entity qualifying for a 
less favorable installment plan, its payment plan will be adjusted to 
reflect the assignee's or transferee's eligibility status as a condition 
of Commission approval of the assignment or transfer. If a licensee that 
utilizes installment financing seeks to change its ownership structure 
in such a way that would result in a loss of eligibility for installment 
payments, it must pay the unpaid principal and accrued interest as a 
condition of Commission approval of the change. If such a change in 
ownership would result in the licensee qualifying for a less favorable 
installment plan, it must adjust its payment plan to reflect its new 
eligibility status as a condition of Commission approval. A licensee may 
not change its payment plan to a more favorable plan.
    (d) Late installment payment. Any licensee that submits a scheduled 
installment payment more than fifteen days late will be charged a late 
payment fee equal to five percent of the amount of the past due payment.
    (e) Payments will be applied in the following order: late charges, 
interest charges, principal payments.

    Effective Date Note: At  62 FR 48795 , Sept. 17, 1997, Sec. 101.1108 
was removed, effective Nov. 17, 1997.