[Federal Register Volume 60, Number 149 (Thursday, August 3, 1995)]
[Rules and Regulations]
[Page 39656]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-18452]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR PART 1

[DA 95-1617]


Interactive Video and Data Service (IVDS) Licenses--Clarification 
of ``Grace Period'' Rule for IVDS ``Auction'' Licensees Paying by 
Installment Payments

AGENCY: Federal Communications Commission.

ACTION: Clarification.

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SUMMARY: The staff of the Wireless Telecommunications Bureau of the 
Commission has clarified the ``grace period'' rule concerning 
installment payments for IVDS licenses won at auction.

EFFECTIVE DATE: June 26, 1995.

FOR FURTHER INFORMATION CONTACT:
Joy Alford, Wireless Telecommunications Bureau, (202) 418-0680.

SUPPLEMENTARY INFORMATION: The following is the full text of the Public 
Notice, DA 95-1617, which was released June 26, 1995. The text may also 
be purchased from the Commission's copy contractor, International 
Transcription Services, Inc., 2100 M Street, Suite 140, Washington, DC 
20037, telephone (202) 857-3800.

    Released: June 26, 1995.

Wireless Telecommunications Bureau Staff Clarifies ``Grace Period'' 
Rule for IVSD ``Auction'' Licensees Paying by Installment Payments

    Section 1.2110(e) of the Commission's auction rules, 47 CFR 
1.2110(e), provides that in the event a licensee defaults on its 
installment payment obligation, the FCC may cancel the license. In the 
Second Report and Order in PP Docket No. 93-253, 9 FCC Rcd 2348, 2391 
para. 240 (1994) 59 FR 22980, May 4, 1994, the Commission stated that 
it would ``consider providing a three to six month grace period a 
delinquent payor's license cancels.'' Recently, the Wireless 
Telecommunications Bureau staff clarified this payment rule in the 
context of Personal Communications Service (PCS) auctions. See FCC 
Public Notice, ``Wireless Telecommunications Bureau Staff Responds to 
Questions About the Broadband PCS C Block Auction,'' Mimeo 54270, 
released June 8, 1995. In response to inquiries, the staff now 
clarifies that this interpretation applies to Interactive Video and 
Data Service (IVDS) licensees as well. Interested parties should 
understand that this advice and rule interpretation constitute informal 
staff opinion, not an official Commission decision or ruling.
    IVDS licensees that elect to pay for their licenses in installments 
will have their licenses conditioned upon full and timely performance 
of all installment payment obligations. The Commission's rules provide 
that a licensee will be deemed in default on its installment payments 
if it is more than 90 days delinquent in making a payment to the 
government.
    Any time prior to the expiration of the 90 days following the 
payment due date, a licensee may request a grace period. Generally, 
where a licensee submits a showing, supported by an affidavit, that it 
in bankruptcy, foreclosure or financial distress, there will be a 
presumption in favor of granting a three-month grace period (commencing 
ninety days after the missed payment date). Any request for a grace 
period based on financial distress must state with particularity the 
grounds for asserting such financial distress. Such grounds may include 
the existence of payment defaults on other third party debt, or the 
general inability to pay debts as they become due in the ordinary 
course of business. If no grace period is granted, then the FCC may 
declare a licensee in default and cancel the license any time after 90 
days from the missed payment.
    Where the Commission grants period and the default is not cured at 
the conclusion of such a grace period, the FCC may cancel the license. 
However, the FCC may in its discretion extend or grant additional grace 
periods where circumstances warrant.
    In accordance with Sec. 1.2110, the first IVDS installment payment 
was due June 30, 1995. IVDS licensees not making their first 
installment payment with the Commission by September 28, 1995, will be 
deemed to be in default. Requests for the additional three-month grace 
period should contain the detailed justification described above, and 
be sent to the following address: Federal Communications Commission, 
Wireless Telecommunications Bureau, Private Wireless Division, 2025 M 
Street NW., Room 8010, Washington, DC 20554, Attention: Stop Code 2000-
F.

Wireless Telecommunications Bureau contact: Joy Alford at 418-0680.

Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-18452 Filed 8-2-95; 8:45 am]
BILLING CODE 6712-01-M