Sec.  1.2106   Submission of upfront payments.

   (a) The Commission may require applicants for licenses subject to
   competitive bidding to submit an upfront payment. In that event, the amount
   of the upfront payment and the procedures for submitting it will be set
   forth in a Public Notice. Any auction applicant that has previously been in
   default on any Commission license or has previously been delinquent on any
   non-tax debt owed to any Federal agency must submit an upfront payment equal
   to 50 percent more than that set for each particular license. No interest
   will be paid on upfront payments.

   (b) Upfront payments must be made by wire transfer in U.S. dollars from a
   financial institution whose deposits are insured by the Federal Deposit
   Insurance Corporation and must be made payable to the Federal Communications
   Commission.

   (c) If an upfront payment is not in compliance with the Commission's Rules,
   or if insufficient funds are tendered to constitute a valid upfront payment,
   the applicant shall have a limited opportunity to correct its submission to
   bring it up to the minimum valid upfront payment prior to the auction. If
   the applicant does not submit at least the minimum upfront payment, it will
   be ineligible to bid, its application will be dismissed and any upfront
   payment it has made will be returned.

   (d) The upfront payment(s) of a bidder will be credited toward any down
   payment required for licenses on which the bidder is the high bidder. Where
   the upfront payment amount exceeds the required deposit of a winning bidder,
   the Commission may refund the excess amount after determining that no bid
   withdrawal penalties are owed by that bidder.

   (e) In accordance with the provisions of paragraph (d), in the event a
   penalty is assessed pursuant to  Sec. 1.2104 for bid withdrawal or default,
   upfront payments or down payments on deposit with the Commission will be
   used to satisfy the bid withdrawal or default penalty before being applied
   toward any additional payment obligations that the high bidder may have.

   [ 59 FR 44293 , Aug. 26, 1994, as amended at  62 FR 13543 , Mar. 21, 1997;  65 FR 52345 , Aug. 29, 2000]