R434-40-15. Scholarship Grant Breach, Repayment, and Penalties

  (1) A scholarship grant recipient who :

  (a) fails to finish his professional schooling within the period of time agreed upon with the Department shall within 90 days after the deadline for completing his schooling or within 90 days of his failure to continue his schooling, whichever occurs earlier, shall repay:

  (i) all scholarship money received according to a schedule established at the time of the award with the Department;

  (ii) if not repaid within one year of default, 12% per annum interest on unrepaid scholarship money calculated from the date each installment was received under the scholarship grant agreement; and

  (iii) costs and expenses incurred in collection, including attorney fees;

  (b) finishes his schooling and fails to pass the necessary professional certifications or examinations within the time period agreed upon with the Department shall repay:

  (i) all scholarship money received according to a schedule established by grant agreement with the Department;

  (ii) if not repaid within one year of default, 12% per annum interest on unrepaid scholarship money calculated from the date each installment was received under the scholarship grant; and

  (iii) costs and expenses incurred in collection, including attorney fees;

  (c) finishes his schooling and fails to take the necessary professional certifications or examinations within the time period agreed upon with the Department shall:

  (i) pay as a penalty twice the total amount of the scholarship money on a prorated basis according to a schedule established by grant agreement with the Department and 12% per annum interest on the unpaid penalty amount; and

  (ii) costs and expenses incurred in collection, including attorney fees;

  (d) finishes his schooling and becomes a health care professional but who fails to fulfill his service obligation shall repay:

  (i) twice the total scholarship grant amount received that is not yet retired by his service on a prorated basis according to a schedule established by grant agreement with the Department;

  (ii) 12% per annum interest on the unretired scholarship money calculated from the date each installment was received under the scholarship grant agreement; and

  (iii) costs and expenses incurred in collection, including attorney fees.

  (2) Amounts recovered and damages collected under this section shall be deposited as dedicated credits to be used to carry out the provisions of the act.

  (3) The amount to be paid back shall be determined from the end of the month in which the scholarship grant recipient breached the scholarship grant as if the scholarship grant recipient had breached at the end of the month

  (4) The breaching scholarship grant recipient shall pay the total amount due according to a schedule agreed upon with the Department which may not be longer than within four years of breaching the scholarship grant agreement.