(a)

1. (1) The Osteopathic Rural Medical Practice Student Loan and Scholarship Board and the qualified rural community shall enter a joint community match income incentive contract with the applicant.

2. (2) The community match contract shall be approved by the Attorney General and signed by the following:

   1. (A) The Chair of the Osteopathic Rural Medical Practice Student Loan and Scholarship Board;
   2. (B) The Secretary of the board;
   3. (C) The designated representative of the qualified rural community; and
   4. (D) The applicant.

(b) Each applicant granted a community match income incentive by the board shall execute a written contract incorporating the following obligations and conditions:

1. (1)

   1. (A) The recipient agrees to practice primary care medicine full time in a contracting qualified rural community for a period of four (4) years.
   2. (B) The recipient shall receive the community match funds according to a disbursement schedule acceptable to the board, the qualified rural community, and the recipient to the contract.
   3. (C) For each three-month period of full-time medical practice by the recipient, according to the terms of the contract, the board and the qualified rural community shall award one-fourth (1/4) of the income incentive for the year of service;

2. (2) If any recipient does not begin, or ceases the full-time practice of medicine in breach of contract, or otherwise breaches the contract, the recipient shall pay:

   1. (A) Twenty thousand dollars ($20,000) for each uncompleted full year of the four-year contract term; and
   2. (B)

(i) Any civil money penalties that apply.

1. (ii) The board may impose civil money penalties of up to fifty percent (50%) of the principal amount of the income incentive under the terms of the contract because of breach; and

2. (3) Neither interest nor the obligation to repay the principal sums accrued shall accrue during any one (1) period of time that the recipient involuntarily serves on active duty in the United States Armed Forces.

   1. (c) Subsection (b) of this section does not prohibit the board from considering and entering into a negotiated settlement with the recipient involving the terms of repayment of amounts paid under the terms of the contract.

      1. (d) Contracts may be amended at any time before the income incentive has been paid in full or terms and conditions of the contract are satisfied.