Sec. 21.39  Considerations involving transfer or assignment 
          applications.

    (a) A Multipoint Distribution Service conditional license may not be 
assigned or transferred prior to the completion of construction of the 
facility and the timely filing of the certification of completion of 
construction. However, consent to the assignment or transfer of control 
of a Multipoint Distribution Service conditional license may be given 
prior to the completion of construction and the timely filing of the 
certification of completion of construction where:
    (1) The assignment or transfer does not involve a substantial change 
in ownership or control of the authorized

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Multipoint Distribution Service 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 that were:
    (1) Authorized following a comparative hearing and have been 
operated less than one year, or;
    (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.

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.
    (c) If a proposed transfer of radio facilities is incidental to a 
sale of other facilities or merger of interests, any showing requested 
under paragraph (a) of this section shall include an additional exhibit 
which:
    (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
    (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.
    (d) 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 (c) (1) and (2) of this section) if the 
transaction involves 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).
[ 44 FR 60534 , Oct. 19, 1979, as amended at  48 FR 33900 , July 26, 1983; 
 50 FR 5994 , Feb. 13, 1985;  52 FR 27554 , July 22, 1987. Redesignated and 
amended at  52 FR 37780 , Oct. 9, 1987;  58 FR 11798 , Mar. 1, 1993;  61 FR 26674 , May 28, 1996]