§ 54.515   Distributing support.

   (a) A telecommunications carrier providing services eligible for support
   under this subpart to eligible schools and libraries may, at the election of
   the carrier, treat the amount eligible for support under this subpart as an
   offset against the carrier's universal service contribution obligation for
   the year in which the costs for providing eligible services were incurred or
   receive a direct reimbursement from the Administrator for that amount.
   Carriers shall elect in January of each year the method by which they will
   be reimbursed and shall remain subject to that method for the duration of
   the calendar year. Any support amount that is owed a carrier that fails to
   remit its monthly universal service contribution obligation, however, shall
   first be applied as an offset to that carrier's contribution obligation.
   Such  a  carrier shall remain subject to the offsetting method for the
   remainder of the calendar year in which it failed to remit their monthly
   universal service obligation. A carrier that continues to be in arrears on
   its universal service contribution obligations at the end of a calendar year
   shall remain subject to the offsetting method for the next calendar year.

   (b) If a telecommunications carrier elects to treat the amount eligible for
   support under this subpart as an offset against the carrier's universal
   service contribution obligation and the total amount of support owed to the
   carrier exceeds its universal service obligation, calculated on an annual
   basis, the carrier shall receive a direct reimbursement in the amount of the
   difference. Any such reimbursement due a carrier shall be submitted to that
   carrier no later than the end of the first quarter of the calendar year
   following the year in which the costs were incurred and the offset against
   the carrier's universal service obligation was applied.

   [ 63 FR 67009 , Dec. 4, 1998]

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