(a) Automatic termination. A license(s) resulting from a Qualifying Transaction in the ECIP shall be automatically terminated without specific Commission action or further notice to the licensee, superseding any service-based penalty, if the assignee fails to comply with any of the following:

(1) The five (5) year holding period pursuant to § 1.60006(f);

(2) The construction requirement pursuant to § 1.60006(b) or (d), or any remaining service-based performance requirement, where applicable; or

(3) The operational requirements pursuant to § 1.60006(c) or (d), where applicable.

(b) Bar from future program participation. A party participating in a Commission approved Qualifying Transaction in the ECIP shall be prohibited from future participation in the ECIP where it is found that it:

(1) Violated the five (5) year holding period requirements of § 1.60006(f), including premature termination of a lease or entering into a sublease in violation of § 1.60006(f)(2), if applicable;

(2) Failed to meet the construction requirement of § 1.60006(b) or (d), or any remaining service-based performance requirement, where applicable;

(3) Failed to meet the operational requirements of § 1.60006(c) or (d), where applicable; or

(4) Entered into a bad faith transaction in violation of § 1.60003(b)(4) or § 1.60004(b)(4).

(c) Effect of program bar. A bar from ECIP is applied as follows:

(1) A program bar shall commence upon the date the assignee or lessee receives notice from the Commission via electronic mail finding a violation pursuant to paragraph (b) of this section. A barred party shall be eligible to continue to receive benefits from Qualifying Transactions in ECIP that are unrelated to the Qualifying Transaction that resulted in the program bar, provided that those benefits were conferred prior to the commencement of the program bar, as a result of the Commission accepting a consummation of an approved assignment application, granting a de facto transfer lease application, or accepting a spectrum manager lease application, as applicable.

(2) A program bar shall also apply to affiliates of barred parties. Third-parties shall be considered affiliates of a barred party if they qualify as an affiliate under § 1.60001. A prospective ECIP participant will be considered a barred affiliate when either:

(i) The third-party was identified, or should have been identified, as an affiliate on the initial Commission approved application for the Qualifying Transaction resulting in the bar; or

(ii) The third-party identifies, or should have identified, a barred affiliate in a subsequent application to participate in the ECIP, regardless of whether they were affiliates at the time of the filing of the initial application for a Qualifying Transaction resulting in the bar.

(3) Transactions that include a barred party shall not be eligible for ECIP benefits, even if all other qualifications are satisfied.

[87 FR 57417, Sept. 20, 2022, as amended at 89 FR 11743, Feb. 15, 2024]