(a) An individual may apply for a loan through the Scholarship Application Management System, which will then be reviewed by the Osteopathic Rural Medical Practice Student Loan and Scholarship Board, if the individual is:

1. (1) Accepted for admission to, or enrolled in good standing in, studies at an Arkansas medical school that lead to the degree of Doctor of Osteopathic Medicine;

2. (2)

   1. (A) A person of good moral character that has the talent and capacity to profit by medical studies.
   2. (B) The qualified rural community does not have to be determined at the time of application but instead at the completion of residency training;
3. (3) In need of financial assistance to complete their medical studies through a "medically underserved and rural practice curriculum"; and
4. (4) A bona fide resident of Arkansas.

(d) The board may make osteopathic rural medical practice loans to the applicant, subject to the provisions of subsection (h) of this section and 6 CAR § 407-105(c), if the board finds that the applicant:

1. (1) Is a bona fide resident of Arkansas;
2. (2) Has been accepted for admission to or is enrolled in good standing in studies that lead to the degree of Doctor of Osteopathic Medicine;
3. (3) Is enrolled in a medically underserved and rural practice curriculum;
4. (4) Needs financial assistance to complete his or her medical studies;
5. (5) Desires to practice medicine in an eligible qualified rural community; and
6. (6) Has good moral character, talent, and capacity to profit by medical studies.

(e) Subject to the availability of funds, an initial osteopathic rural medical practice loan for one (1) academic year shall:

1. (1) Be renewable annually for the number of years required to complete studies leading to the Doctor of Osteopathic Medicine degree; or

2. (2) For additional amounts, not to exceed the maximum amounts specified in subsection (f) of this section, but all subsequent osteopathic rural medical practice loans shall be granted only upon application by recipient and finding by the board that applicant:

   1. (A) Has completed successfully the medical studies of the preceding academic year and remains in good standing as an enrolled student in the college;
   2. (B) Is enrolled or participating in a medically underserved and rural practice curriculum;
   3. (C) Continues to be a resident of Arkansas; and
   4. (D) Continues to warrant financial assistance.

(g)

1. (1) The maximum amount of each community match income incentive shall not exceed eighty thousand dollars ($80,000) or as the board otherwise shall determine payable under 6 CAR § 407-109(b).
2. (2) The board shall provide fifty percent (50%) of the community match income incentive, and the qualified rural community shall provide the other fifty percent (50%) of the income incentive.
3. (3) However, if the board does not have sufficient funds to match the community's portion of the income incentive, nothing precludes a qualified rural community from providing the total income incentive amount.

(h)

1. (1) All payments for osteopathic rural practice loans and community match loans shall be made on requisitions signed by the Chair of the Osteopathic Rural Medical Practice Student Loan and Scholarship Board, drawn against the funds held for purposes of this part.

2. (2) The following funds shall be held in trust and disbursed by the fiscal officers of a medical school in Arkansas that is not the University of Arkansas for Medical Sciences:

   1. (A) State appropriations so designated;
   2. (B) Revolving amounts received from repayment of loans and interest; and
   3. (C) All funds, property, and income received by the board under its authority to accept and apply gifts, bequests, and devises for the aforesaid purposes.

3. (3) Funds collected because of a recipient's breach of an osteopathic rural practice loan contract or community match loan contract shall be:

   1. (A) Held in trust for either the use of the Osteopathic Rural Medical Practice Student Loan and Scholarship Program;
   2. (B) The Community Match Rural Physician Recruitment Program;
   3. (C) Or any other use otherwise deemed appropriate by the board in its discretion; and
   4. (D) Disbursed by the fiscal officer of an osteopathic medical school in Arkansas pursuant to this part.