Opinion ID: 185067
Heading Depth: 2
Heading Rank: 1

Heading: Background on Financial Qualifications

Text: 4 At the time the parties filed their applications, the Commission resolved competing applications though an evidentiary hearing process that assessed applicants' basic and comparative qualifications. Each broadcast applicant had to establish, among other things, that it was financially qualified to cover certain construction and operating costs. See 47 U.S.C. § 308(b) (1994); CHM Broad. Ltd. Partnership v. FCC, 24 F.3d 1453, 1455 (D.C. Cir. 1994). The financial qualification form in effect when the parties here made their filings required each applicant to certify with reasonable assurance that it had net liquid assets on hand or had funding obtainable from committed sources sufficient to construct and operate the requested facilities for three months without revenues. See In re Revision of Application for Construction Permit for Commercial Broadcast Station (FCC Form 301), 50 Rad. Reg. 2d 381 (P & F) (1981) (Form 301). The form clearly indicated that an applicant had to be prepared to document certification compliance upon request. See id. If the Commission questioned an applicant's financial qualifications, the applicant had to demonstrate its reasonable assurance by showing that, prior to certification, it engaged in serious and reasonable efforts to ascertain predictable construction and operation costs and that it confirmed the availability of net liquid assets, either on hand or from committed sources, sufficient to construct and operate the station for three months without revenue. In re Northampton Media Assocs., 4 F.C.C.R. 5517 pp 13-15 (1989), aff'd sub nom. Northampton Media Assocs. v. FCC, 941 F.2d 1214, 1217 (D.C. Cir. 1991). After questioning and investigating Damsky's financial qualifications, the ALJ found that Damsky failed to make either of the two showings required to establish a reasonable assurance. 5 Specifically, the ALJ found that Damsky failed to show prior to the certification that she engaged in serious and reasonable efforts to formulate cost figures because she only offered a general $300,000 ballpark cost estimate based on a conversation with her consulting engineer. See Initial Decision, 7 F.C.C.R. 5244 pp 6-9, 181. The Commission affirmed the ALJ's findings and conclusions. See Memorandum Opinion and Order, 13 F.C.C.R. 11688 pp 1, 30. Likewise, the ALJ and Commission both agreed that Damsky failed to show that she had sufficient committed funding available since she based her financial backing on a casual assurance from her husband that the couple had the assets to cover the $300,000 project. See Initial Decision, 7 F.C.C.R. 5244 pp 10-24,182-83; Memorandum Opinion and Order, 13 F.C.C.R. 11688 p 31. The ALJ and Commission found that while the record showed that Damsky's husband preferred to obtain a loan rather than liquidate, neither Damsky nor her husband provided any assurance about the availability of such a loan contemporaneous with the certification. See Initial Decision, 7 F.C.C.R. 5244 pp 182-83; Memorandum Opinion and Order, 13 F.C.C.R. 11688 p 32.