FEDERAL COMMUNICATIONS COMMISSION

**445 12^th^ Street, S.W.**

**Washington, D.C. 20554**

***In Reply Refer to:***

1800B3-TSN

**DA 02-2432**

**October 2, 2002**

**[CERTIFIED MAIL -- RETURN RECEIPT REQUESTED]{.underline}**

Mr. Larry G. Fuss, President

Delta Radio, Inc.

P.O. Box 1438

Cleveland, MS 38732

Barry D. Wood, Esq.

Wood, Maines & Brown, Chartered

1827 Jefferson Place, N.W.

Washington, DC 20036

Re: New(FM), Greenville, Mississippi

Delta Radio, Inc.

Facility ID No.: 16553

File No. BPH-19950417ME

Petition for Reconsideration and

Waiver

Motion for Declaratory Ruling

Dear Applicant and Counsel:

On August 27, 2002, the Chief, Audio Division, Office of Broadcast
License Policy, Media Bureau, released a staff decision ("Staff
Decision")[^1] dismissing the above-captioned application of Delta
Radio, Inc. ("Delta") for a new AM broadcast station at Greenville,
Mississippi.[^2] Delta had been the winning bidder for the Greenville
construction permit in Closed Broadcast Auction No. 25, but defaulted by
failing to make its final auction payment within the time period
announced in the applicable Public Notice.[^3] Accordingly, Delta's
application was dismissed and, pursuant to Commission rules, the
Greenville construction permit was offered to the second-highest bidder,
Mondy-Burke Broadcasting Network. ("MBN"),[^4] at its final net bid
amount.[^5]

In the Staff Decision, we instructed MBN as follows:

> The Greenville construction permit is offered to MBN at its net final
> bid of \$270,750. Pursuant to the provisions of 47 C.F.R. § 1.2107,
> Mondy-Burke Broadcasting Network shall have ten (10) business days
> from the date of this letter to make its down payment by depositing
> with Mellon Bank in Pittsburgh, Pennsylvania, such funds as are
> necessary to bring its total deposits up to \$54,150, twenty percent
> (20%) of its final net bid. If, after submitting its down payment, MBN
> defaults on its final payment or is disqualified, it shall be subject
> to the provisions of 47 C.F.R. § 1.2104(g).[^6]

MBN timely deposited its 20% down payment on September 11, 2002.

Under the Commission\'s rules, a bidder who fails to remit the required
down or final payment for a license for which it was the high bidder is
subject to a default payment.[^7] Each default payment is comprised of
two parts. Under these circumstances, the first component is the
difference between the original high bidder\'s net defaulted bid and the
final net bid of the second-highest bidder, or the difference between
the original high bidder\'s gross defaulted bid and the final gross bid
of the second-highest bidder, whichever is less.[^8] For Auction No. 25
participants, the second component is equal to three percent (3%) of the
defaulter\'s bid, or the second-highest bidder's bid, whichever is
less.[^9] If either bid amount is subject to a bidding credit, the three
percent (3%) will be calculated using the same bid amounts and basis
(net or gross bids) as in the first component of the default
payment.[^10]

It is therefore ORDERED that Delta Radio, Inc. is assessed a default
payment pursuant to 47 C.F.R. § 1.2104(g), which payment is calculated
and set forth in Attachment A hereto. The default payment will be
deducted from Delta's funds on deposit with the Commission, and we are
prepared to refund the remaining funds on deposit with the Commission to
the payor(s) of record.[^11] To obtain a refund, the payor(s) of record
must submit a request(s) in accordance with the instructions set forth
in Attachment B.

This letter shall be sent to the applicant and its representatives by
certified mail, return receipt requested. If you have any additional
questions or require further information, please contact Thomas
Nessinger in the Audio Division at (202) 418-2700, or Gail Glasser in
the Auctions Accounting Group, Financial Operations Center, at (202)
418-0578.

Sincerely,

Peter H. Doyle, Chief

Audio Division

Office of Broadcast License Policy

Media Bureau

cc: Mondy-Burke Broadcasting Network

c/o Lauren A. Colby, Esq.

Ms. Margaret Adele Karr

**ATTACHMENT A**

**Default Calculation**

**Delta Radio, Inc., Auction No. 25**

**MX Group FM 73, Greenville, Mississippi, File No. BPH-19950417ME**

**Outstanding Balance Payments Received**

Gross Winning Bid -- \$ 397,000 Down Payment

Gross High Bid of Mondy- Applied from

Burke Broadcasting [\$ 361,000]{.underline} Upfront Payment \$ 62,727.65

*Difference* \$ 36,000 Additional

Down Payment \$ 16,672.35

*Total* \$ 79,400.00

Gross High Bid of Mondy-

Burke Broadcasting \$ 361,000

Times 3% \$ 10,830

Plus bid difference [\$ 36,000]{.underline}

*Total Default Payment* \$ 46,830

Less Payments Rec'd \$ 79,400

**Total due (refund)** **(\$ 32,570)**

**ATTACHMENT B**

**Requesting Refund Instructions**

In order to process refund requests, the FCC must receive wire transfer
instructions from the payor(s) of record that include the following
information:

> Name and Address of Bank
>
> ABA Number
>
> Contact and Telephone Number
>
> Account Number to Credit
>
> Name of Account Holder
>
> Correspondent Bank (if applicable)
>
> ABA Number
>
> Account Number
>
> FCC Registration Number (FRN)

Please include the payor of record's Taxpayer Identification Number
(TIN) and a copy of this letter. This information should be sent to the
Auctions Accounting Group:

> Federal Communications Commission
>
> Auctions Accounting Group
>
> Attention: Gail Glasser or Tim Dates
>
> 445 12^th^ Street, S.W.
>
> Room 1-C863
>
> Washington, DC 20554

Requests can also be faxed to the Auctions Accounting Group at (202)
418-2843.

[^1]: *Letter to Mr. Larry G. Fuss, Barry D. Wood, Esq., and Mondy-Burke
    Broadcasting Network from Peter H. Doyle, Chief, Audio Division,
    Office of Broadcast License Policy, Media Bureau*, DA 02-2097, Ref.
    No. 1800B3-TSN (August 27, 2002).

[^2]: File No. BPH-19950417ME.

[^3]: *Public Notice*: "FCC Announces It Is Prepared to Grant Broadcast
    Construction Permits After Final Payment Is Made," 17 FCC Rcd 4278
    (2002).

[^4]: MBN's application was assigned File No. BPH-19950413MC.

[^5]: *See*, *e.g*., 47 C.F.R. §§ 1.2104(g)(2), 1.2109, 1.2107(b). *See
    also* *In the Matter of Implementation of Section 309(j) of the
    Communications Act -- Competitive Bidding for Commercial Broadcast
    and Instructional Television Fixed Service Licenses, First Report
    and Order,* ("*Broadcast First Report and Order*"), 13 FCC Rcd
    15920, 15952 (1998) (while Section 1.2109 generally gives the
    Commission discretion to either re-auction licenses to existing or
    new applicants, or to offer licenses to other high bidders in the
    event of default by, or disqualification of, the winning bidder,
    offering the construction permit to the next highest bidder best
    comports with the statutory participation restrictions in Auction
    No. 25).

[^6]: Staff Decision at 6-7.

[^7]: 47 C.F.R. §§ 1.2104(g)(2), 1.2109(c).

[^8]: 47 C.F.R. § 1.2104(g)(2).

[^9]: *Id*.

[^10]: *Id*.

[^11]: *See Entertainment Unlimited, Inc., Request for Refund of Late
    Payment Fees for PCS Licenses Purchased in Auction No. 22*, 16 FCC
    Rcd 10030 (2001) (Commission does not accept instructions regarding
    the refund of excess upfront payments from entities or individuals
    other than the payor of record).