1. A. An awardee who fails to complete the terms of the loan repayment contract shall pay to the Department the liquidated damages owed under A.R.S. §§ 36-2172(J) or 36-2175(I), as applicable, unless the awardee receives a waiver of the liquidated damages under R9-15-110.

2. B. Upon receiving notification or upon the Department’s determination that an awardee is unable or does not intend to complete the terms of the awardee’s loan repayment contract, the Department shall:

   1. 1. Withhold loan repayment funds,
   2. 2. Determine liquidated damages owed, and
   3. 3. Notify the awardee of the amount of liquidated damages owed.
3. C. An awardee shall pay the liquidated damages to the Department within one year after the termination date of the awardee’s loan repayment contract or within one year after the end of a loan repayment contract suspension approved according to R9-15-107, whichever is later.

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 Repealed under an exemption from A.R.S. Title 41, Chapter 6, pursuant to Laws 1992, Ch. 301, § 61 effective October 1, 1992, filed October 14, 1992 (Supp. 92-4).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 Emergency expired on November 11, 2023, “Repealed” Section reinstated and effective November 11, 2023 through December 5, 2023; new Section made by final rulemaking at 29 A.A.R. 3837 (December 22, 2023), with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).