(a) A recipient of a loan shall repay each loan together with interest at the maximum rate allowed by Arkansas law if the recipient:
(1) Ceases to be enrolled in good standing in a recognized nursing program before completing the education requirements to qualify as a:
- (A) Registered nurse;
- (B) Licensed practical nurse; or
- (C) Nursing educator;
- (2) Does not, for the period specified in the agreement, teach in an Arkansas nursing education program if granted a nursing educator loan or engage in practice as a registered nurse or licensed practical nurse in Arkansas if granted a nursing practice loan; or
- (3) Fails to comply with any other requirements of the agreement.
- (b) Interest shall accrue from the date each payment of funds was received by the recipient.
- (c) No interest shall accrue and no obligation to repay a loan exists during any period of time that the recipient of the loan serves on active duty in the United States Armed Forces.
- (d) If repayment of a loan is required, upon the death of the recipient of the loan all unpaid principal and interest is due and payable.
- (e) The failure to repay a loan as specified may be considered unprofessional conduct for disciplinary purposes.