Goto Section: 27.1212 | 27.1214 | Table of Contents
Revised as of October 1, 2010
Goto Year:2009 |
§ 27.1213 Designated entity provisions for BRS in Commission auctions
commencing prior to January 1, 2004.
(a) Eligibility for small business provisions. For purposes of
Commission auctions commencing prior to January 1, 2004 for BRS
licenses, a small business is an entity that together with its
affiliates has average annual gross revenues that are not more than $40
million for the preceding three calendar years.
(b) Designated entities. As specified in this section, designated
entities that are winning bidders in Commission auctions commencing
prior to January 1, 2004 for BTA service areas are eligible for special
incentives in the auction process. See 47 CFR 1.2110.
(c) Installment payments. Small businesses and small business consortia
may elect to pay the full amount of their winning bids in Commission
auctions commencing prior to January 1, 2004 for BTA service areas in
installments over a ten (10) year period running from the date that
their BTA authorizations are issued.
(1) Upon issuance of a BTA authorization to a winning bidder in a
Commission auction commencing prior to January 1, 2004 that is eligible
for installment payments, the Commission will notify such eligible BTA
authorization holder of the terms of its installment payment plan. For
BRS, such installment payment plans will:
(i) Impose interest based on the rate of ten (10) year U.S. Treasury
obligations at the time of issuance of the BTA authorization, plus two
and one half (2.5) percent;
(ii) Allow installment payments for a ten (10) year period running from
the date that the BTA authorization is issued;
(iii) Begin with interest-only payments for the first two (2) years;
(iv) Amortize principal and interest over the remaining years of the
ten (10) year period running from the date that the BTA authorization
(2) Conditions and obligations. See § 1.2110(g)(4) of this chapter.
(3) Unjust enrichment. If an eligible BTA authorization holder that
utilizes installment financing under this subsection seeks to
partition, pursuant to applicable rules, a portion of its BTA
containing one-third or more of the population of the area within its
control in the licensed BTA to an entity not meeting the eligibility
standards for installment payments, the holder must make full payment
of the remaining unpaid principal and any unpaid interest accrued
through the date of partition as a condition of approval.
(d) Reduced upfront payments. For purposes of Commission auctions
commencing prior to January 1, 2004 for BRS licenses, a prospective
bidder that qualifies as a small business, or as a small business
consortia, is eligible for a twenty-five (25) percent reduction in the
amount of the upfront payment otherwise required. To be eligible to bid
on a particular BTA, a small business will be required to submit an
upfront payment equal to seventy-five (75) percent of the upfront
payment amount specified for that BTA in the public notice listing the
upfront payment amounts corresponding to each BTA service area being
(e) Bidding credits. For purposes of Commission auctions commencing
prior to January 1, 2004 for BRS licenses, a winning bidder that
qualifies as a small business, or as a small business consortia, may
use a bidding credit of fifteen (15) percent to lower the cost of its
winning bid on any of the BTA authorizations awarded in the Commission
BRS auctions commencing prior to January 1, 2004.
(f) Short-form application certification; Long-form application or
statement of intention disclosure. A BRS applicant in a Commission
auction commencing prior to January 1, 2004 claiming designated entity
status shall certify on its short-form application that it is eligible
for the incentives claimed. A designated entity that is a winning
bidder for a BTA service area(s) shall, in addition to information
otherwise required, file an exhibit to either its initial long-form
application for a BRS station license, or to its statement of intention
with regard to the BTA, which discloses the gross revenues for each of
the past three years of the winning bidder and its affiliates. This
exhibit shall describe how the winning bidder claiming status as a
designated entity satisfies the designated entity eligibility
requirements, and must list and summarize all agreements that affect
designated entity status, such as partnership agreements, shareholder
agreements, management agreements and other agreements, including oral
agreements, which establish that the designated entity will have both
de facto and de jure control of the entity. See 47 CFR 1.2110(i).
(g) Records maintenance. All holders of BTA authorizations acquired in
a Commission auction commencing prior to January 1, 2004 that claim
designated entity status shall maintain, at their principal place of
business or with their designated agent, an updated documentary file of
ownership and revenue information necessary to establish their status.
Holders of BTA authorizations or their successors in interest shall
maintain such files for a ten (10) year period running from the date
that their BTA authorizations are issued. The files must be made
available to the Commission upon request.
[ 69 FR 72034 , Dec. 10, 2004, as amended at 71 FR 35190 , June 19, 2006]
Goto Section: 27.1212 | 27.1214
Goto Year: 2009 |
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