Sec. 69.613  Temporary administrator of universal service support 
          mechanisms.

    (a) The association shall establish an independent subsidiary 
through which the association shall administer temporarily the portions 
of the universal service support mechanisms described in Sec. 69.616 
until the permanent Administrator is established and ready to commence 
operations. The independent subsidiary shall be incorporated under the 
laws of Delaware and shall be designated the Universal Service 
Administrative Company. The association shall submit the independent 
subsidiary's proposed articles of incorporation, bylaws, and any other 
documents necessary to incorporate the independent subsidiary to the 
Commission by August 1, 1997 for review prior to the independent 
subsidiary's incorporation.
    (b) As a condition of its appointment as the temporary Administrator 
of the universal service support mechanisms, the association shall agree 
to make available, if the association or its independent subsidiary is 
not appointed permanent Administrator, any and all intellectual 
property, including, but not limited to, all records and information 
generated by or resulting from the independent subsidiary's temporary 
administration of the universal service support mechanisms, and to make 
such property available to whomever the Commission directs, free of 
charge. Such property includes, but is not limited to, databases, 
processing systems, computer software programs, lists, records, 
information, or equipment created or purchased and used in the temporary 
administration of the universal service support mechanisms. The 
association must specify any property it proposes to exclude from the 
foregoing types of property based on the existence of such property 
prior to the effective date of the association's appointment as the 
temporary Administrator.
    (c) As a further condition of its appointment as the temporary 
Administrator of the universal service support mechanisms, the 
association and the independent subsidiary must provide services to the 
Corporations, such as contracting for the services of association or 
independent subsidiary employees, loans or transfers of assets, upon the 
request of the Corporations and on reasonable terms.

[ 62 FR 41306 , Aug. 1, 1997]