Sec. 101.55  Considerations involving transfer or assignment 
          applications.

    (a) Licenses may not be assigned or transferred prior to the 
completion of construction of the facility. However, consent to the 
assignment or transfer of control of such a license may be given prior 
to the completion of construction where:
    (1) The assignment or transfer does not involve a substantial change 
in or ownership or control of the authorized facilities; or
    (2) The assignment or transfer of control is involuntary due to the 
licensee's bankruptcy, death, or legal disability.
    (b) The Commission will review a proposed transaction to determine 
if the circumstances indicate ``trafficking'' in licenses whenever 
applications (except those involving pro forma assignment or transfer of 
control) for consent to assignment of a license, or for transfer of 
control of a licensee, involve facilities:
    (1) Authorized following a comparative hearing and have been 
operated less than one year;
    (2) Involve facilities that have not been constructed; or
    (3) Involve facilities that were authorized following a random 
selection proceeding in which the successful applicant received 
preference and that have been operated for less than one year.
    (c) At its discretion, the Commission may require the submission of 
an affirmative, factual showing (supported by affidavits of a person or 
persons with personal knowledge thereof) to demonstrate that the 
proposed assignor or transferor has not acquired an authorization or 
operated a station for the principal purpose of profitable sale rather 
than public service. This showing may include, for example, a 
demonstration that the proposed assignment or transfer is due to changed 
circumstances (described in detail) affecting the licensee subsequent to 
the acquisition of the license, or that the proposed transfer of radio 
facilities is incidental to a sale of other facilities or merger of 
interests.
    (d) If a proposed transfer of radio facilities is incidental to a 
sale or other facilities or merger of interests, any showing requested 
under paragraph (a) of this section must include an additional exhibit 
that:
    (1) Discloses complete details as to the sale of facilities or 
merger of interests;
    (2) Segregates clearly by an itemized accounting, the amount of 
consideration involved in the sale of facilities or merger of interests; 
and

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    (3) Demonstrates that the amount of consideration assignable to the 
facilities or business interests involved represents their fair market 
value at the time of the transaction.
    (e) For the purposes of this section, the one year period is 
calculated using the following dates (as appropriate):
    (1) The initial date of grant of the license, excluding subsequent 
modifications;
    (2) The date of consummation of an assignment or transfer, if the 
station is acquired as the result of an assignment of license, or 
transfer of control of corporate licensee; or
    (3) The median date of the applicable commencement dates (determined 
pursuant to paragraphs (d)(1) and (2) of this section) if the 
transaction involves a system (such as a Private Operational Fixed 
Point-to-Point Microwave system) of two or more stations. (The median 
date is that date so selected such that fifty percent of the 
commencement dates of the total number of stations, when arranged in 
chronological order, lie below it and fifty percent lie above it. When 
the number of stations is an even number, the median date will be a 
value half way between the two dates closest to the theoretical median).