2.11

(b) a person authorised to carry on business in Australia as an insurer under the Insurance Act 1973; or

(c) if Part VII of that Act has not ceased to have effect — a Lloyd’s underwriter.

(6) For this section, a corporation makes a Deed of Financial Security by executing the Deed in accordance with section 127 of the Corporations Law.

2.9 Lodging of power of attorney

If a Deed of Financial Security is made under a power of attorney for a corporation, the applicant must ensure that a copy of the power of attorney is lodged with the Deed.

2.10 Failure to comply with requirements concerning Deed of Financial Security

(1) This section applies if the ACA is not satisfied that the person giving the Deed is a person who complies with subsection 2.8 (5).

(2) The applicant’s registration is of no effect.

(3) The applicant is excluded from taking part (or any further part) in the auction and from obtaining a spectrum licence.

(4) The applicant’s eligibility payment is refundable.

(5) The applicant’s entry fee is not refundable.

2.11 Performance payment

(1) This section applies if an applicant gives the ACA a performance payment instead of a Deed of Financial Security.

(2) Performance payment monies lodged with the ACA may be dealt with in accordance with this determination as security for the timely discharge of the applicant’s financial obligations to the ACA under this determination.

(3) If an applicant defaults in making payment for a successful bid, the performance payment is forfeited to the ACA to discharge the liability of the applicant in accordance with section 5.4.

(4) The ACA must account to the applicant for the application of monies referred to in subsection (2) after completion of the auction as set out in Part 5.

2.12 Forfeiture and refund of secured monies

(1) To meet any undischarged liability owed by an applicant to the ACA for the matters mentioned in subsection (2), monies will be forfeited to the ACA that:

(a) are secured by the performance payment; or

(b) are secured by, and paid to the ACA, under the Deed of Financial Security; or

(c) have been paid by the promisor to the ACA under section 1.4 of the Deed of Financial Security.

(2) For subsection (1), the matters include:

(a) any act or omission by the applicant, its officers, employees, agents, volunteers, subcontractors or associates in connection with the applicant’s participation in an allocation process conducted under this determination; or

(b) any breach or default by the applicant of its obligations or warranties under the Deed of Acknowledgment, this determination, or both.