Sec. 25.406  License grant, denial, default, and disqualification.

    (a) Unless otherwise specified in these rules, auction winners are 
required to pay the balance of their winning bids in a lump sum within 
ten (10) business days following public notice by the Commission that it 
is prepared to award the licenses. Grant of the license will be 
conditioned on full and timely payment of the winning bid.
    (b) If a winning bidder withdraws its bid after the Commission has 
declared competitive bidding closed or fails to remit the required down 
payment within ten (10) business days after the Commission has declared 
competitive bidding closed, the bidder will be deemed to have defaulted, 
its application will be dismissed, and it will be liable for the default 
payment specified in Sec. 1.2104(g)(2). In such event, the Commission 
may either re-auction the license to existing or new applicants or offer 
it to the other highest bidders (in descending order) at their final 
bids. The down payment obligations set forth in Sec. 25.404(b) will 
apply.
    (c) A winning bidder who is found unqualified to be a licensee, 
fails to remit the balance of its winning bid in a timely manner, or 
defaults or is disqualified for any reason after having made the 
required down payment, will be deemed to have defaulted and will be 
liable for the penalty set forth in Sec. 1.2104(g)(2). In such event, 
the Commission will conduct another auction for the license, affording 
new parties an opportunity to file an application for the license.
    (d) Bidders who are found to have violated the antitrust laws or the 
Commission's rules in connection with their participation in the 
competitive bidding process may be subject, in addition to any other 
applicable sanctions, to forfeiture their up front payment, down payment 
or full bid amount, and may be prohibited from participating in future 
auctions.

                          Subpart G [Reserved]

 Subpart H--Authorization To Own Stock in the Communications Satellite 
                               Corporation

    Source:   28 FR 13037 , Dec. 5, 1963, unless otherwise noted.

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