Sec. 24.716  Upfront payments, down payments, and installment payments 
          for licenses for frequency Block F.

    (a) Upfront Payments and Down Payments. (1) Each eligible bidder for 
licenses on frequency Block F subject to auction shall pay an upfront 
payment of $0.06 per MHz per pop for the maximum number of licenses (in 
terms of MHz-pops) on which it intends to bid pursuant to Sec. 1.2106 of 
this chapter and procedures specified by Public Notice;
    (2) Each winning bidder shall make a down payment equal to 20 
percent of its winning bid (less applicable bidding credits); a winning 
bidder shall bring its total amount on deposit with the Commission 
(including upfront payment) to 10 percent of its net winning bid within 
five business days after the auction closes, and the remainder of the 
down payment (10 percent) shall be paid within five business days after 
the application required by Sec. 24.809(b) is granted; and
    (b) Installment Payments. Each eligible licensee of frequency Block 
F may pay the remaining 80 percent of the net auction price for the 
license in installment payments pursuant to Sec. 1.2110(e) of this 
chapter and under the following terms:
    (1) For an eligible licensee with gross revenues exceeding $75 
million (calculated in accordance with Sec. 24.709

[[Page 284]]

(a)(2) and (b)) in each of the two preceding years (calculated in 
accordance with Sec. 24.720(f)), interest shall be imposed based on the 
rate for ten-year U.S. Treasury obligations applicable on the date the 
license is granted, plus 3.5 percent; payments shall include both 
principal and interest amortized over the term of the license;
    (2) For an eligible licensee with gross revenues not exceeding $75 
million (calculated in accordance with Sec. 24.709 (a)(2) and (b)) in 
each of the two preceding years (calculated in accordance with 
Sec. 24.720(f)), 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 year and payments of interest and principal amortized over the 
remaining nine years of the license term; or
    (3) For an eligible licensee that qualifies as a small business or 
as a consortium of small businesses, interest shall be imposed based on 
the rate for ten-year U.S. Treasury obligations applicable on the date 
the license is granted; 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.
    (c) Late Installment Payments. Any licensee that submits a scheduled 
installment payment more than 15 days late will be charged a late 
payment fee equal to 5 percent of the amount of the past due payment. 
Payments will be applied in the following order: late charges, interest 
charges, principal payments.
    (d) Unjust Enrichment. (1) If a licensee that utilizes installment 
financing under this section seeks to assign or transfer control of its 
license to an entity not meeting the eligibility standards for 
installment payments, the licensee must make full payment of the 
remaining unpaid principal and any unpaid interest accrued through the 
date of assignment or transfer as a condition of approval.
    (2) If a licensee that utilizes installment financing under this 
section seeks to make any change in ownership structure that would 
result in the licensee losing eligibility for installment payments, the 
licensee shall first seek Commission approval and must make full payment 
of the remaining unpaid principal and any unpaid interest accrued 
through the date of such change as a condition of approval. A licensee's 
(or other attributable entity's) increased gross revenues or increased 
total assets due to nonattributable equity investments (i.e., from 
sources whose gross revenues and total assets are not considered under 
Sec. 24.709(b)), debt financing, revenue from operations or other 
investments, business development or expanded service shall not be 
considered to result in the licensee losing eligibility for installment 
payments.
    (3) If a licensee seeks to make any change in ownership that would 
result in the licensee qualifying for a less favorable installment plan 
under this section, the licensee shall seek Commission approval and must 
adjust its payment plan to reflect its new eligibility status. A 
licensee may not switch its payment plan to a more favorable plan.
[ 60 FR 37799 , July 21, 1995, as amended at  61 FR 33868 , July 1, 1996]