38Deposit or deed of financial security required

38 Deposit or deed of financial security required

(1) An applicant must, before the preference deadline: (a) pay a deposit of an amount to the ACMA on behalf of the Commonwealth; or (b) give the ACMA on behalf of the Commonwealth a deed of financial security, for an amount; or (c) pay a deposit of part of an amount and give a deed of financial security for the remainder.

Note: For information on how a deposit is paid, see section 7. For information on how a deed of financial security is given, see section 6 and subsection (8).

(2) For the purposes of subsection (1) the amount required, in relation to an applicant, is: (a) if the applicant nominated both the 10 MHz lot and the 5 MHz lot as its preferred lots – 10 percent of the starting price of the 10 MHz lot; (b) if the applicant nominated only the 10 MHz lot as its preferred lot – 10 percent of the starting price of the 10 MHz lot; (c) if the applicant nominated only the 5 MHz lot as its preferred lot – 10 percent of the starting price of the 5 MHz lot. (3) If an applicant pays a deposit or gives a deed of financial security (or both) for an amount less than the amount under subsection (2), the ACMA must, in writing, notify the applicant that: (a) the applicant has paid a deposit or given a deed of financial security (or both), whichever the case may be, for less than the amount under subsection (2); and (b) the applicant must, before the preference deadline or no later than 3 working days after the date of the notice (whichever is the later), pay a deposit or give a deed of financial security (or both) for the amount under subsection (2). (4) If the applicant does not comply with the notice given under subsection (3): (a) if: (i) the applicant nominated both lots as its preferred lots; and (ii) 10 percent of the starting price for the 10 MHz lot is greater than the amount of the deposit paid or the deed of financial security given (or both) by the applicant; and (iii) 10 percent of the starting price for the 5 MHz lot is equal to or less than the amount of the deposit paid or the deed of financial security given (or both) by the applicant; the applicant is taken to have nominated only the 5 MHz lot as its preferred lot; (b) in any other case – the applicant is taken to have withdrawn its application. (5) The ACMA must tell an applicant in writing if it is taken to have withdrawn its application under subsection (4). (6) A deed of financial security must be executed by an Australian-owned authorised deposit-taking institution (as defined in the Banking Act 1959) which is a bank. (7) If a deed of financial security is executed by a person acting under a power of attorney for a body corporate, the applicant must give the ACMA a copy of the power of attorney with the deed. (8) If a deed of financial security is given to the ACMA by email or fax before the preference deadline, the original deed must be received by the ACMA no later than 3 working days after the preference deadline (or, if the ACMA agrees to a later time, the agreed time) for the deed to be taken to have been given to the ACMA. (9) An applicant is taken to have withdrawn its application if: (a) the applicant fails to pay a deposit or give a deed of financial security before the preference deadline; or (b) the ACMA is not satisfied that the person executing a deed of financial security is a person mentioned in subsection (6). (10) The ACMA must tell an applicant in writing if it is taken to have withdrawn its application under subsection (9).