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Final Default Letter for Golden Arrow Paging, Inc.

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Released: March 22, 2012
Federal Communications Commission
Washington, D.C. 20554
March 22, 2012

DA 12-441

Via Certified Mail, Return Receipt Requested

Golden Arrow Paging, Inc.
Attn: Charles LaCroix
2125 Sidney Baker
Kerrville, TX 78028

Re: Final Default Payment for fifteen Auction 40 Licenses CP-BEA084-FA (Baton Rouge,

LA-MS); CP-BEA087-FA (Beaumont-Port Arthur, TX); CP-BEA127-FA (Dallas-Forth
Worth, TX-AR-OK); CP-BEA129-FA (San Angelo, TX); CP-BEA129-FB (San Angelo,
TX); CP-BEA129-FC (San Angelo, TX); CP-BEA129-FD (San Angelo, TX); CP-
BEA129-FE (San Angelo, TX); CP-BEA130-FA (Austin-San Marcos, TX); CP-BEA134-
FA (San Antonio, TX); CZ-MEA031-AA (Houston); CZ-MEA031-AJ (Houston); CA-
MEA031-AK (Houston); CZ-MEA031-AV (Houston); CZ-MEA038-AV (San Antonio)

DO NOT DISCARD THIS IMPORTANT NOTICE

OF A DEMAND FOR PAYMENT

OF A DEBT OWED THE UNITED STATES AND ORDER OF PAYMENT

Dear Mr. LaCroix:
This Order provides notice and demands payment of a debt owed to the United States based on
the default of Golden Arrow Paging, Inc. (“Golden Arrow”) on its final payment for licenses it won in
Auction 40.
Golden Arrow had winning bids in Auction 40 for twenty-two Lower and Upper Paging Band
licenses. After the close of Auction 40, Golden Arrow defaulted on its final payment obligation for those
licenses.1 Thus, pursuant to the Commission’s rules,2 Golden Arrow owes a default payment, which is a
debt owed to the United States.3 In 2007, the Commission assessed Golden Arrow a total initial default
payment of $1,770.00 from the monies it had on deposit.4 New licenses for the same spectrum were


1 See Letter from Rita Cookmeyer, Auctions and Spectrum Access Division, Wireless Telecommunications Bureau,
to Golden Arrow Paging, Inc., c/o Foster Charitable Foundation, Inc., Attn: David L. Greenwald, (“Letter”), 22 FCC
Rcd 14069 (WTB 2007).
2 See 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
3 See 31 U.S.C. § 3701(b)(1).
4 See also Letter, 22 FCC Rcd at 14073; see 47 C.F.R. § 1.2104(g)(2). We will apply $1,620.00 of the $1,770.00
assessed initial default payment toward the final default payment owed for these fifteen licenses. The balance of
$150.00 will remain on deposit with the Commission until the final default payment for the remaining seven licenses
can be determined.

Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 2


offered in a subsequent auction of lower and upper paging bands (Auction 87) and because fifteen of the
twenty-two defaulted licenses received a winning bid,5 the Commission is now able to calculate Golden
Arrow’s final default payment obligation with respect to those licenses.6
Under the Commission’s rules, at the close of the auction, a winning bidder assumes a binding
obligation to pay the full amount of its accepted winning bid. A bidder who defaults on that obligation or
is disqualified is subject to a default payment.7 The default payment has two components. The first
component is the difference between the bidder’s net defaulted bid and the subsequent net winning bid, or
the difference between the bidder’s gross defaulted bid and the subsequent gross winning bid, whichever
is less, the next time a license for the spectrum is won, should the subsequent winning bid be less than the
defaulted bid.8 The second component of the default payment is an additional payment, which, pursuant
to the rule in effect at the time of Auction 40, is equal to three percent (3%) of the defaulter’s bid, or the
subsequent winning bid, whichever is less.9 In the event that the subsequent winning bid is greater than
or equal to the defaulted bid, the total default payment is equal to three percent (3%) of the defaulted
bid.10
As shown in Attachment A, in accordance with section 1.2104(g)(2) of the Commission’s rules,
we have completed the final default payment calculation and, after applying the monies Golden Arrow
has on deposit,11 Golden Arrow owes an outstanding balance of $25,011.50. This debt to the United
States is payable in full and without further demand within 30 days of the date of this Order in accordance
with the Notice Information provided below and Payment Instructions at Attachment B.


5 See Auction of Lower and Upper Paging Bands Licenses Closes, Winning Bidders Announced for Auction 87,
Public Notice, 25 FCC Rcd 18164 (WTB 2010).
6 47 C.F.R. § 1.2104(g)(2). Until new licenses for the relevant spectrum associated with the seven remaining
defaulted licenses are won in a subsequent auction, the Commission cannot determine the full amount of the default
payment that is owed for those licenses. Once a subsequent winning bid for the relevant spectrum is established, the
remaining amount owed by Golden Arrow, if any, will then be assessed.
7 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
8 47 C.F.R. § 1.2104(g)(2)(i).
9 47 C.F.R § 1.2104(g)(2)(2001).
10 Id.
11 Golden Arrow paid an upfront payment of $20,000.00 to participate in Auction 40. See Lower and Upper Paging
Bands Auction Closes; Winning Bidders Announced, Public Notice, 16 FCC Rcd 21821 (WTB 2001). The
Commission applied $2,550.00 of that amount towards Golden Arrow’s withdrawal payment for license MEA039-
AA. See Letter from Rita Cookmeyer, Auctions and Spectrum Access Division, Wireless Telecommunications
Bureau, to Kent S. Foster, Golden Arrow Paging, Inc., 19 FCC Rcd 22466 (WTB 2004). As a result, Golden Arrow
currently has $17,450.00 on deposit with the Commission. However, the Commission is withholding $150.00 of the
monies on deposit as the interim default payments for the seven remaining licenses that have not yet received
winning bids. Thus, only $17,300.00 of Golden Arrow’s deposit will be applied towards its outstanding balance.

Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 3


Important Notice Information

The following provides notification of procedures and information required by the Debt
Collection Improvement Act of 1996 (“DCIA”).12 The outstanding balance shown in Attachment A is a
debt Golden Arrow owes to the United States. It is payable in full and without further demand, and
payment must be received no later than the payment due date, which is 30 days from the date of this
Order (“Due Date”).13 Any portion of the debt unpaid at the end of the Due Date will be considered
delinquent and administrative charges (incurred for processing and handling delinquent debts),14
interest,15 and penalties16 will accrue beginning from that date. Interest accrues at a minimum annual rate
established annually by the Treasury in accordance with 31 U.S.C. § 3717.17 A penalty of six percent
(6%) accrues on any portion of the debt that remains unpaid for more than 90 days from the Due Date.18
However, the Commission will waive payment of the accrued interest, if the full amount of the debt is
paid within 30 days of the Due Date.19 In addition to these charges, the Commission may initiate
administrative offset,20 and it may refer the delinquent debt to the United States Treasury or the
Department of Justice (“DOJ”) for further collection action.21 The United States Treasury will impose an
additional administrative collection charge,22 and it may also commence administrative offset.23 An
additional surcharge may be imposed, if DOJ initiates judicial action to recover judgment.24 Furthermore,


12 Public Law 104-134, 110 Stat. 1321, 1358 (Apr. 26, 1996) codified in relevant part at 31 U.S.C. §§ 3716
(administrative offset) and 3717 (interest and penalty on claims); see also 47 C.F.R. §§ 1.1911, 1.1912, and 1.1940.
13 As noted at Attachment B, if the 30th day falls on a non-business day, payment must be received on the next
business day.
14 31 U.S.C. § 3717(e)(1); 47 C.F.R. § 1.1940(c).
15 31 U.S.C. § 3717(b); 47 C.F.R. § 1.1940(b).
16 31 U.S.C. § 3717(e); 47 C.F.R. § 1.1940(d).
17 47 C.F.R. § 1.1940(b).
18 31 U.S.C. § 3717(e)(2); 47 C.F.R. § 1.1940(d).
19 31 U.S.C. § 3717(d) and 47 C.F.R. § 1.1940(g).
20 47 C.F.R. § 1.1912. Under this provision the Commission may refer the debt to the Treasury for centralized
administrative offset whereby, subject to certain exceptions, money otherwise payable to the debtor by the United
States government may be used to satisfy the debt. In addition, “unless otherwise prohibited by law,” the
Commission may conduct “non-centralized, ad hoc case-by-case offsets when centralized offset is unavailable or
inappropriate.” 47 C.F.R. § 1.1912(c).
21 31 U.S.C. §§ 3711(g), 3716; 28 U.S.C. § 3001, et seq.; 47 C.F.R. § 1.1912. Transfer may be made without further
notice at any time after the Due Date.
22 31 U.S.C. § 3717(e); 31 C.F.R. § 285.12 (j).
23 31 U.S.C. § 3716; 47 C.F.R. § 1.1912(b) (mandatory centralized administrative offset).
24 28 U.S.C. § 3011.

Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 4


any portion of the debt that is unpaid after the Due Date is a delinquent debt, which will trigger
application of the Commission’s red light procedures at 47 C.F.R. § 1.1910.

Ordering Clauses

Accordingly, IT IS ORDERED that, pursuant to sections 4(i) and 309 of the Communications Act
of 1934, as amended, 47 U.S.C. §§ 154(i), 309, and section 1.2104(g)(2) of the Commission’s rules, 47
C.F.R. § 1.2104(g)(2), Golden Arrow Paging, Inc. is ASSESSED a final default payment obligation as
computed in Attachment A.
IT IS FURTHER ORDERED that, pursuant to sections 1.2104 and 1.2106 of the Commission’s
rules, 47 C.F.R. §§ 1.2104 and 1.2106, Golden Arrow Paging, Inc.’s interim payment or funds on deposit
will be applied towards the final default payment.
IT IS FURTHER ORDERED that Golden Arrow Paging, Inc.’s debt of $25,011.50 is payable in
full and without further demand, and it must be paid within 30 days of the date of this Order (the Due
Date), in accordance with the payment instructions in Attachment B, and any portion of the debt unpaid
after the Due Date is delinquent, and under 31 U.S.C. § 3717, administrative charges, interest, and
penalties will accrue.
IT IS FURTHER ORDERED that this Order and a FCC Remittance Advice Form (FCC Form
159, Version 2/03) shall be sent to Golden Arrow Paging, Inc. and its representatives by certified mail,
return receipt requested. This action is taken pursuant to authority delegated by section 0.331 of the
Commission’s rules, 47 C.F.R. § 0.331.
Sincerely,
Margaret W. Wiener
Chief, Auctions and Spectrum Access Division
Wireless Telecommunications Bureau
cc: William J. Sill, Esq.
Sherry Wheeler


Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 5


ATTACHMENT A

Multi-Auction Default Payment Report

License

Defaulted Defaulted Re-auction Re-auction

3%

Lower

Final

Number

Gross Bid

Net Bid

Gross Bid

Net Bid

Payment

Difference

Payment

Frequency

Auction

Auction Auction 87 Auction 87

Payment

Block

40
40
CP-BEA084-FA
$500.00
$500.00
$500.00
$325.00
$15.00
$0.00
$15.00
(Baton Rouge, LA-
MS
CP-BEA087-FA
$3,400.00
$3,400.00
$500.00
$325.00
$15.00
$2,900.00
$2,915.00
(Beaumont-Port
Arthur, TX)
CP-BEA127-FA
$23,000.00 $23,000.00
$5,000.00
$5,000.00
$150.00
$18,000.00 $18,150.00
(Dallas-Fort Worth,
TX)
CP-BEA129-FA (San
$1,700.00
$1,700,00
$500.00
$375.00
$15.00
$1,200.00
$1,215.00
Angelo, TX)
CP-BEA129-FB (San
$1,700.00
$1,700.00
$500.00
$375.00
$15.00
$1,200.00
$1,215.00
Angelo, TX)
CP-BEA129-FC (San
$500.00
$500.00
$500.00
$375.00
$15.00
$0.00
$15.00
Angelo, TX)
CP-BEA129-FD (San
$2,400.00
$2,400.00
$500.00
$375.00
$15.00
$1,900.00
$1,915.00
Angelo, TX)
CP-BEA129-FE (San
$500.00
$500.00
$500.00
$375.00
$15.00
$0.00
$15.00
Angelo, TX)
CP-BEA130-FA
$3,500.00
$3,500.00
$500.00
$375.00
$15.00
$3,000.00
$3,015.00
(Austin-San Marcos,
TX)
CP-BEA134-FA (San
$2,000.00
$2,000.00
$500.00
$375.00
$15.00
$1,500.00
$1,515.00
Antonio, TX)
CZ-MEA031-AA
$4,100.00
$4,100.00
$500.00
$500.00
$15.00
$3,600.00
$3,615.00
(Houston)
CZ-MEA031-AJ
$2,600.00
$2,600.00
$500.00
$500.00
$15.00
$2,100.00
$2,115.00
(Houston)

Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 6


License

Defaulted

Defaulted

Re-auction

Re-auction

3%

Lower

Final

Number

Gross Bid

Net Bid

Gross Bid

Net Bid

Payment

Difference

Payment

Frequency

Auction 40

Auction 40

Auction 87

Auction 87

Payment

Block

CZ-MEA031-AK
$3,000.00
$3,000.00
$500.00
$500.00
$15.00
$2,500.00
$2,515.00
(Houston)
CZ-MEA031-AV
$4,100.00
$4,100.00
$550.00
$550.00
$16.50
$3,550.00
$3,566.50
(Houston)
CZ-MEA038-AV
$1,000.00
$1,000.00
$500.00
$500.00
$15.00
$500.00
$515.00
(San Antonio)
Total Final Default Payment Due
$42,311.50
Less Amount on Deposit*
$17,300.00

Outstanding Balance Due on Final

$25,011.50

Default Payment

* For purposes of calculating Golden Arrow’s outstanding balance, the amount on deposit does not include the
$150.00 interim default payment the Commission withheld for the seven licenses that have not yet received
subsequent winning bids.

Golden Arrow Paging, Inc.





DA 12-441



March 22, 2012
Page 7


ATTACHMENT B

Payment Instructions

The following information is being provided to assist you in making your payment.
All payments must be made in U.S. currency in the form of a wire transfer. No personal checks, cashier’s
checks or other forms of payment will be accepted. Wire transfer payments must be received by 6:00 PM
Eastern Time, no later than thirty days from the date of this ORDER; however, if the 30th day falls on a
non-business day, e.g., Saturday, Sunday or holiday, it is due the next business day. Applicants must
allow sufficient time for the wire transfer to be initiated and for the transmission to be completed prior to
the deadline. To submit funds by wire, applicants will need the following information to properly effect
the transmittal:
ABA Routing Number: 021030004
Receiving Bank:

TREAS NYC


33 Liberty Street
New York, NY 10045
ACCOUNT NAME:

FCC

ACCOUNT NUMBER: 27000001
OBI Field: (Skip one space between each information item) “AUCTIONPAY”
APPLICANT FRN: (same as FCC Form 159, block 21)
PAYMENT TYPE CODE: (same as FCC Form 159, block 24A: “

APEN

”)
FCC CODE 1: (same as FCC Form 159, Block 28A: “40”)
PAYOR NAME: (same as FCC Form 159, Block 2)
LOCKBOX NO.: #979088
Please fax a completed remittance advice (Form 159) to U.S. Bank, St. Louis, Missouri at (314) 418-4232
at least one hour before initiating the wire transfer (but on the same business day).
For questions regarding the submission of payment, and the FCC Form 159, contact Gail Glasser, Office
of the Managing Director, Financial Operations, Auctions Accounting Group, at (202) 418-0578.

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