Part 5After the Auction

Part 5 After the Auction

5.1 Requirements before issue of a space licence to highest bidder

(1) The registered applicant who holds the highest bid on a lot when the auction closes (the successful applicant) is entitled to be issued an SL for that lot if:

(a) the applicant pays the balance of the bid price, worked out under section 5.2 for the lot for which the applicant was the successful bidder, in accordance with section 5.3; and

(b) the applicant enters into a Deed of Agreement in accordance with subsection (2).

(2) The successful applicant must, within 6 months of the date of the notice referred to in subsection 5.3(1), enter into a Deed of Agreement that is substantially in the same terms as the deed specified in Schedule 4 or Schedule 5.

(3) If the successful applicant does not enter into a Deed of Agreement:

(c) the highest bid made by the applicant will be treated as a withdrawn bid and the applicant will be penalised for that bid in accordance with section 4.23; and

(d) the lot so affected will be regarded as a defaulted lot and the applicant will be taken to be in default of its financial obligations to the ACA under this determination; and

(e) subsections 5.4 (2), (3) and (4) shall apply.

5.2 Calculation of balance of the bid price

(1) The balance of the bid price to be paid by a successful applicant is worked out as follows:

(a) the ACA will add up the value of the bid withdrawal penalties imposed on the applicant under section 4.23;

(b) the ACA will add the highest bid for the lot and the total of the bid withdrawal penalties for the successful applicant;

(c) the ACA will deduct the applicant’s eligibility payments and repayable performance payments (if any) from this total.

(2) The amount remaining is the balance of the bid price.

(3) If the applicant’s eligibility payments and repayable performance payments (if any) are greater than the total of the highest bid and bid withdrawal penalties:

(a) the ACA will refund the difference; and

(b) the applicant is entitled to be issued an SL without further payment to the ACA;

provided that the applicant enters into a Deed of Agreement in accordance with subsection 5.1(2).

5.3 Payment of balance of bid price

(1) The ACA will notify each successful applicant, by receipted mail, of the balance of the bid price.

(2) A successful applicant must pay the balance of the bid price to the ACA as follows:

(a) 10% of the balance of the bid price no later than 10 working days after the date of the notice; and