[BC] LMAs - How Far Can They Go?

[Phil Alexander]

First thought - this licensee must be somehow related
to the one Larry dealt with.

Second thought - do not walk, RUN to a lawyer if you
have any legal involvement in the LMA.

Third thought - reverse the order of the first two above.

I am NOT a lawyer, so I could be wrong, but I *think*
the FCC may find unauthorized transfer of control here
and someone is going to be fined big time.

BEWARE that the state court cannot use the LMA to hold
the LMA holder liable for damages in the event the FCC
does the obvious. State laws vary and the FCC may not
want to get involved in a local "commercial" dispute.

Go the NAB show in April. Visit the tables. Your odds
of not losing are better there IMHO.


Phil Alexander, CSRE, AMD
Broadcast Engineering Services and Technology 
(a Div. of Advanced Parts Corporation) 
Ph. (317) 335-2065   FAX (317) 335-9037


On 29 Jan 2006 at 12:34, Cowboy wrote:

> On Saturday 28 January 2006 08:32 am, Steve wrote:
> >
> >  ----- Original Message ----- 
> >  From: Cowboy 
> 
> >  >> The licensee remains responsible for the operation of the
> >  >> radio station within the terms of its license, ( including EAS )
> >  >> AND must maintain that "meaningful" presence.
> >  >> Two people must be employees of the current licensee.
> >
> >  Well, that part is has been handled. However, the LMA holders are 
> reimbursing the licensee for these saleries.
> 
>  The fees exchanged for the LMA are well beyond my expertise, but
>  I see nothing wrong with that on the surface.
> 
> >  The licensee has turned over their bank accounts to the LMA holders. They 
> account for all the income. They pay the licensee 1500 bucks a month plus a 
> capped fee of 500 bucks for sales. So some months that fee could be 2 grand. 
> Now listen to this one. The license holders believe if they were nabbed by 
> the FCC for violations they would simply sue the LMA holders for the fines!
> 
>  Probably, but the FCC has the discretion to block that kind of "cost 
> recovery"
>  so I'd definitely be getting advice of counsel on that score !
> 
>  Sounds like a very high stake gamble to me, but what do I know ?






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