SECTION 540:10-1-3. Terms and conditions of scholarships

(a)   The terms and conditions governing the scholarship shall be as prescribed and formulated by the Physician Manpower Training Commission, but shall include the condition that each recipient, upon completion of his course of study, shall repay his scholarship by practicing his profession in a rural community in Oklahoma having a population of 7,500 persons or less according to the last preceding United States Decennial Census and having a need therefore, as determined by the Commission, for one year for each one year the scholarship is financed; provided, however, that the recipient will be given no credit for payment and reduction of said obligation by serving in the defined rural communities for a period less than two years.

(b)   The terms of this subsection shall apply to recipients who accept assistance before July 1, 1993. The contract shall provide that, in the event the recipient breaches the terms of the contract by not serving the designated community for the specified period of time, he shall pay liquidated damages in an amount agreed upon by the Commission and the recipient and representing a reasonable estimate of the damage or loss to the community or the state. Said damages shall not exceed 100% of the principal. After payment of the liquidated damages, repayment of the principal may be made in cash with interest at the rate of 12% per annum, said interest to accrue from the date each payment is made pursuant to the scholarship. No interest, however, shall accrue during any one period of time that the recipient thereof is required to serve in the Armed Forces of the United States, including any one period of voluntary enlistment or during any period of internship and residency.

(c)   The terms of this subsection shall apply to recipients who accept assistance on or after July 1, 1993. The contract shall provide that in the event the recipient breaches the terms of the contract by not serving the designated community for the specified period of time, the Commission shall be entitled to recover an amount equal to three times the principal disbursed, pursuant to the contract, plus interest. Interest on all amounts paid to or on behalf of the participant shall be computed at the current prime rate plus one percent (1%) with said interest to accrue from the date each payment is made, pursuant to the contract. The amount the Commission is entitled to recover shall be paid within ninety (90) days of the date the recipient becomes liable as determined by the Commission. [70:625.3]

[Source: Amended at 15 Ok Reg 1770, eff 5-11-98]