§1138. Failure to comply; remittance; cancellation for death or permanent total disability

            A. If the recipient fails to comply fully with any condition provided for in the contract, the recipient shall remit to the board of commissioners an amount which bears the same ratio to the aggregate of the amount of the scholarship awarded as the number of months that the recipient failed to comply bears to the number of months that the recipient was obligated to comply. The amount shall be computed together with interest at the legal rate. The interest shall be computed from the date on which the recipient completed professional training and active military service, if any. Repayment shall be completed within four years from the date at which the scholarship began to draw interest.

            B. The permanent withdrawal or dismissal of a recipient from nursing or allied health school shall forfeit immediately the right of the recipient to retain the scholarship. The scholarship shall begin to bear interest at that time, and repayment shall be made to the board and completed within four years.

            C. Any recipient of a scholarship who fails to return to the area designated by the board upon completion of his education and training shall begin repayment of the scholarship, with interest, within six months after completion of his education and training. Repayments shall be made to the board and completed within four years.

            D. Any obligation to comply with the contract shall be cancelled upon the death of the recipient, upon receipt of a certified copy of the death certificate by the board, or upon the permanent and total disability of the recipient.

            Acts 1988, No. 54, §1; Acts 2023, No. 33, §1, eff. June 1, 2023.