Section 47-5.7 - Default

47-5.7 Default.

(a) Default. A recipient shall be placed in default if he/she has not been granted a waiver or deferral by the Commissioner and:

(1) the recipient is not available to fulfill his/her service obligation on the start date; or

(2) the recipient fails, refuses or is unable to fulfill his/her service obligation; or

(3) an award is rescinded after dispersal of award monies to the recipient.

(b) Dismissal. A recipient who is dismissed from employment or discontinues practice at the location of his/her service obligation, shall contact the Department of Health within 30 days of dismissal or discontinuance. The Commissioner may reassign the recipient to an alternate underserved area. A recipient who is reassigned shall resume his/her service obligation at the alternate location within 90 days of the dismissal or discontinuance. A recipient who is reassigned and who fails to resume his/her service obligation at the alternate location within 90 days of dismissal or discontinuance shall be placed in default.

(c) Calculation of financial obligation. An individual found to be in default will be required to pay the President, within five years from the date of default, all monies received, plus interest, plus liquidated damages, as determined by the following formula:

A =2B (T-S) ________ T

where "A" is the amount the President is entitled to receive; "B" is the sum of all payments made to the recipient and the interest on such amount which would be payable if at the time such awards were paid they were loans bearing interest at the maximum prevailing rate determined by the Higher Education Services Corporation; "T" is the total number of months in the recipient's period of obligated service; and "S" is the number of months of service actually rendered by the recipient. The minimum number of months in the recipient's period of obligated service shall be 24 months.

(d) The Department of Health shall advise the Higher Education Services Corporation of any default, and the Higher Education Services Corporation shall collect repayments and, where indicated, initiate action for prosecution to recover monies owed the State.
 

Effective Date: 
Wednesday, October 22, 1997
Doc Status: 
Complete