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Final Default Payment Letter for Kankakee Valley

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Released: June 19, 2012
Federal Communications Commission
Washington, D.C. 20554
June 19, 2012
DA 12-965

Via Certified Mail, Return Receipt Requested

Kankakee Valley Broadcasting Company, Inc.
Attn: Sidney Marks
400 W. Culver Road
Knox, IN 46534

Re: Final Default Payment for Auction 62 Construction Permit FM389-A (Culver, IN)

DO NOT DISCARD THIS IMPORTANT NOTICE

OF A DEMAND FOR PAYMENT

OF A DEBT OWED THE UNITED STATES AND ORDER OF PAYMENT

Dear Mr. Marks:
This Order provides notice and demands payment of a debt owed to the United States based on
the default of Kankakee Valley Broadcasting Company, Inc. (“Kankakee”) on its final payment for a
construction permit it won in Auction 62.
Kankakee was the winning bidder for FM broadcast construction permit FM389-A (Culver, IN)
in Auction 62. After the close of Auction 62, Kankakee defaulted on its final payment obligation for this
permit and failed to timely file its long-form application (FCC Form 301).1 Thus, pursuant to the
Commission’s rules,2 Kankakee owes a default payment, which is a debt owed to the United States.3
In 2006, Kankakee filed a Request for Waiver asking the Commission to waive the down
payment and long-form application filing deadlines for the Culver permit.4 The Commission denied
Kankakee’s Request for Waiver and assessed Kankakee an interim default payment of $10,620.00, from
the monies it had on deposit.5 FM Broadcast permit FM389-A (Culver, IN) was offered in a subsequent
auction of FM broadcast construction permits (Auction 93), and because it received a winning bid,6 the


1 See Kankakee Valley Broadcasting Co., Inc., Memorandum Opinion and Order, 22 FCC Rcd 8591 (WTB 2007)
(“Kankakee MO&O”).
2 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
3 31 U.S.C. § 3701(b)(1).
4 See Request for Waiver of Kankakee Valley Broadcasting Co., Inc. (dated June 22, 2006) (“Request for Waiver”).
Specifically, Kankakee sought a waiver of the requirement to make its down payment within the time period
established by Section 1.2107(b), as well as a waiver of the application filing deadline prescribed by Section
73.5005(a). Id.
5 See Kankakee MO&O, 22 FCC Rcd at 8593 ¶ 5, 8598 ¶¶ 16-18. See also 47 C.F.R. §§ 1.2104(g)(2) and 1.2109(b).
6 See Auction of FM Broadcast Construction Permits Closes; Winning Bidders Announced for Auction 93, Public
Notice
, DA 12-600 (rel. April 17, 2012) (“Auction 93 Closing Public Notice”).

Kankakee Valley Broadcasting Company, Inc.
DA 12-965
June 19, 2012
Page 2
Commission is now able to calculate Kankakee’s final default payment obligation with respect to this
construction permit.7
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.8 A bidder who defaults on that obligation
or is disqualified is subject to a default payment.9 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 or construction permit for the spectrum is won, should the subsequent
winning bid be less than the defaulted bid.10 The second component of the default payment is an
additional payment, which, pursuant to the rule in effect at the time of Auction 62, is equal to three
percent (3%) of the defaulter’s bid, or the subsequent winning bid, whichever is less.11 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.12
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 Kankakee has on
deposit, Kankakee owes an outstanding balance of $89,200.00. 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.

Important Notice Information

The following provides notification of procedures and information required by the Debt
Collection Improvement Act of 1996 (“DCIA”).13 The outstanding balance shown in Attachment A is a
debt Kankakee 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”).14 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),15 interest,16 and
penalties17 will accrue beginning from that date. Interest accrues at a minimum annual rate established
annually by the United States Treasury in accordance with 31 U.S.C. § 3717.18 However, the
Commission will waive payment of the accrued interest, if the full amount of the debt is paid within 30


7 47 C.F.R § 1.2104(g)(2).
8 Id.
9 47 C.F.R. §§ 1.2104(g)(2), 1.2109(b).
10 47 C.F.R. § 1.2104(g)(2)(i).
11 47 C.F.R § 1.2104(g)(2) (2005).
12 Id.
13 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.
14 As noted at Attachment B, if the 30th day falls on a non-business day, payment must be received on the next
business day.
15 31 U.S.C. § 3717(e)(1); 47 C.F.R. § 1.1940(c).
16 31 U.S.C. § 3717(b); 47 C.F.R. § 1.1940(b).
17 31 U.S.C. § 3717(e); 47 C.F.R. § 1.1940(d).
18 47 C.F.R. § 1.1940(b).

Kankakee Valley Broadcasting Company, Inc.
DA 12-965
June 19, 2012
Page 3
days of the Due Date.19 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.20 In addition to these charges, the Commission may
initiate administrative offset,21 and it may refer the delinquent debt to the United States Treasury or the
Department of Justice (“DOJ”) for further collection action.22 The United States Treasury will impose an
additional administrative collection charge, 23 and it may also commence administrative offset.24 An
additional surcharge may be imposed if the DOJ initiates judicial action to recover judgment.25
Furthermore, any portion of the debt that is unpaid after the Due Date specified in this order 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), Kankakee Valley Broadcasting Company, 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, Kankakee Valley Broadcasting Company, Inc.’s interim payment or
funds on deposit will be applied towards the final default payment.
IT IS FURTHER ORDERED that Kankakee Valley Broadcasting Company, Inc.’s debt of
$89,200.00 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.


19 31 U.S.C. § 3717(d); 47 C.F.R. § 1.1940(g).
20 31 U.S.C. § 3717(e)(2); 47 C.F.R. § 1.1940(d).
21 47 C.F.R. § 1.1912. Under this provision, the Commission may refer the debt to the United States 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).
22 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 specified.
23 31 U.S.C. § 3717(e); 31 C.F.R. § 285.12(j).
24 31 U.S.C. § 3716; 47 C.F.R. § 1.1912(b) (mandatory centralized administrative offset).
25 28 U.S.C. § 3011.

Kankakee Valley Broadcasting Company, Inc.
DA 12-965
June 19, 2012
Page 4
IT IS FURTHER ORDERED that this Order and a FCC Remittance Advice Form (FCC Form
159, Version 2/03) shall be sent to Kankakee Valley Broadcasting Company, 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
Attachments
cc (w/Att): Richard J. Hayes, Jr.

3 Stetson Avenue

Camden, ME 04843

Kankakee Valley Broadcasting Company, Inc.
DA 12-965
June 19, 2012
Page 5

ATTACHMENT A

Multi-Auction Default Payment Report

Construction

Defaulted

Defaulted

Re-auction Re-auction

3%

Lower

Final

Permit

Gross Bid

Net Bid

Gross Bid

Net Bid

Payment

Difference

Payment

Number

Auction 62

Auction 62

Auction 93 Auction 93

Payment

Frequency

Block

FM389-A
$354,000.00
$354,000.00 $200,000.00 $200,000.00
$6,000.00
$154,000.00
$160,000.00
(Culver, IN)
Total Final Default Payment Due
$160,000.00
Less Interim Default Payment
$70,800.00
and Amount on Deposit

Outstanding Balance Due on

$89,200.00

Final Default Payment


Kankakee Valley Broadcasting Company, Inc.
DA 12-965
June 19, 2012
Page 6

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: (“62”)
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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