1. A. The Department may cancel an awardee’s loan repayment contract, if the Department determines that:

   1. 1. There are insufficient funds;

   2. 2. The awardee:

      1. a. Except as allowed in subsection (C), has failed to complete the terms of the loan repayment contract; or
      2. b. Is not complying with A.R.S. Title 36, Chapter 21 and this Chapter; or
   3. 3. An awardee’s service site is not complying with the requirements in A.R.S. Title 36, Chapter 21 or this Chapter.

2. B. If the Department cancels an awardee’s loan repayment contract according to subsection (A), the Department shall:

   1. 1. Provide written notice that includes the specific reason for the cancellation;
   2. 2. For a cancellation according to subsection (A)(2) or (3), notify the awardee of the Department’s decision according to R9-15-205 or R9-15-305, as applicable; and
   3. 3. Specify whether the Department plans to impose liquidated damages according to R9-15-109.

3. C. An awardee may submit a written request to the Department requesting cancellation of a loan repayment contract within 60 calendar days after the start date of the loan repayment contract if:

   1. 1. No loan repayment funds have been disbursed to the awardee’s lender;
   2. 2. The awardee is unable or does not intend to complete the terms of the loan repayment contract; and

   3. 3. The written request includes:

      1. a. The awardee’s name, home address, telephone number, and email address;
      2. b. The service site’s name and street address; and the name, email address, and telephone number of the individual authorized to act on behalf of the service site;
      3. c. Whether the awardee agrees to allow the Department to submit supplemental requests for additional information or documentation in R9-15-205 or R9-15-305, as applicable; and
      4. d. The awardee’s signature and date of signature.
4. D. For a request submitted according to subsection (C), the Department shall notify an awardee of the Department’s decision according to R9-15-205 or R9-15-305, as applicable.

Historical Note

Adopted effective November 16, 1983 (Supp. 83-6). Repealed under an exemption from A.R.S. Title 41, Chapter 6, pursuant to Laws 1992, Ch. 301, § 61 effective October 1, 1992, filed October 14, 1992 (Supp. 92-4). New Section made by emergency rulemaking at 28 A.A.R. 3684 (December 2, 2022), with an immediate effective date of November 15, 2022; effective for 180 days (Supp. 22-4). Emergency renewed at 29 A.A.R. 1274 (June 2, 2023), with an effective date of May 14, 2023; effective for an additional 180 days (Supp. 23-2). Emergency expired on November 11, 2023, “Repealed” Section reinstated and effective November 11, 2023 through December 5, 2023; new Section made by final rulemaking at 29 A.A.R. 3837 (December 22, 2023), with an immediate effective date of December 6, 2023 (Supp. 23-4).