Goto Section: 25.164 | 25.201 | Table of Contents

FCC 25.165
Revised as of October 1, 2006
Goto Year:2005 | 2007
Sec.  25.165   Posting of bonds.

   (a) For all satellite licenses issued after September 20, 2004, other than
   DBS licenses, DARS licenses, and replacement satellite licenses as defined
   in paragraph (e), the licensee is required to post a bond within 30 days of
   the grant of its license. Failure to post a bond will render the license
   null and void automatically.

   (1) NGSO licensees are required to post a bond in the amount of $5 million.

   (2) GSO licensees are required to post a bond in the amount of $3 million.

   (3) Licensees of satellite systems including both NGSO satellites and GSO
   satellites that operate in the same frequency bands as the NGSO satellites
   are required to post a bond in the amount of $5 million.

   (b) The licensee must use a surety company deemed acceptable within the
   meaning of 31 U.S.C. 9304 et seq. (See, e.g., Department of Treasury Fiscal
   Service, Companies Holding Certificates of Authority as Acceptable Sureties
   on Federal Bonds and As Acceptable Reinsurance Companies,  57 FR 29356 , July
   1, 1992.) The bond must name the U.S. Treasury as beneficiary in the event
   of the licensee's default. The licensee must provide the Commission with a
   copy of the performance bond, including all details and conditions.

   (c) A licensee will be considered to be in default if it fails to meet any
   milestone deadline set forth in  Sec. 25.164, and, at the time of milestone
   deadline, the licensee has not provided a sufficient basis for extending the
   milestone.

   (d) A GSO licensee will be permitted to reduce the amount of the bond by
   $750,000 upon successfully meeting a milestone deadline set forth in section
   25.164(a) of this chapter. An NGSO licensee will be permitted to reduce the
   amount of the bond by $1 million upon successfully meeting a milestone
   deadline set forth in section 25.164(b) of this chapter.

   (e) A replacement satellite is one that is:

   (1) Authorized to be operated at the same orbit location, in the same
   frequency bands, and with the same coverage area as one of the licensee's
   existing satellites, and

   (2) Scheduled to be launched so that it will be brought into use at
   approximately the same time as, but no later than, the existing satellite is
   retired.

   [ 68 FR 51507 , Aug. 27, 2003, as amended at  69 FR 51587 , Aug. 20, 2004]

Subpart C—Technical Standards

   Source:    30 FR 7176 , May 28, 1965;  36 FR 2562 , Feb. 6, 1971, unless
   otherwise noted.


Goto Section: 25.164 | 25.201

Goto Year: 2005 | 2007
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