SMA PLT ENTERS ARSA WHEN NOT MEETING THE ALT RPTING REQUIREMENT MODE C AS SPECIFIED IN FAR 91 PT 215(B)(4)(I)(II)(C).

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ON MAR/FRI/92; I DEPARTED BOWMAN FIELD VFR TO BOWLING GREEN; KY; IN AN SMA. I REQUESTED BOWMAN TWR THAT I WANTED RADAR ADVISORIES. SINCE BOWMAN FIELD IS A SATELLITE ARPT WHICH IS APPROX 8 MI FROM STANIFORD FIELD; AND IS UNDER THE LOUISVILLE ARSA; I HAD THIS OPTION. I ADVISED BOWMAN TWR THAT I WOULD LIKE 4500 FT MSL AS A FINAL ALT. I WAS ASSIGNED AT OR BELOW 2500 FT MSL UNTIL FURTHER ADVISED BY STANIFORD DEP. I DEPARTED BOWMAN FIELD; TURNED ONTO MY ASSIGNED HDG; AND CONTACTED STANIFORD APCH CLBING THROUGH 1000 FT. THEY CONFIRMED MY RADAR IDENT; AND CLRED ME TO 4500 FT MSL. I ADVISED THEM THAT I NEEDED TO STAY AT 2500 FT MSL FOR VFR CLOUD CLRNCS. AT THIS TIME; I NOTIFIED THEM THAT I BELIEVED MY MODE C WAS NOT WORKING. THEY CONFIRMED IT INOP AND CONTINUED TO VECTOR ME THROUGH THE ARSA AND TERMINATED RADAR SVC 20 MI S OF LOUISVILLE. AT THE TIME OF THE MODE C VIOLATION; I DID NOT REALIZE THAT I WAS IN POTENTIAL DANGER OF CREATING A VIOLATION. I ASSUMED THAT APCH CTL WOULD; IF THEY DID NOT WANT ME IN THEIR AIRSPACE WITHOUT MODE C; WOULD HAVE RADAR VECTORED ME UNDER AND AROUND THE LOUISVILLE; KY; ARSA. AFTER DISCUSSING THIS SITUATION WITH OTHER PLTS; I CAME TO THE CONCLUSION THAT I MIGHT HAVE BEEN IN VIOLATION OF FLYING IN AN ARSA WITHOUT MODE C. IT IS; IN MY OPINION; THAT THE FAA NEEDS TO SEND ADVISORY CIRCULARS TO ALL PLTS POINTING OUT WHEN AND WHERE YOU MUST HAVE AN OPERATING MODE C TRANSPONDER. I BELIEVE THAT THIS WOULD HELP ELIMINATE FUTURE OCCURRENCES SUCH AS THE ONE DESCRIBED ABOVE.