N.Y. Comp. Codes R. & Regs. tit. 10, § 47-5.7
(3) an award is rescinded after dispersal of award monies to the recipient.
(b) Dismissal.
A recipient who is dismissed from employment or discontinues practice at the location of his/her service obligation, shall contact the Department of Health within 30 days of dismissal or discontinuance. The commissioner may reassign the recipient to an alternate underserved area. A recipient who is reassigned shall resume his/her service obligation at the alternate location within 90 days of the dismissal or discontinuance. A recipient who is reassigned and who fails to resume his/her service obligation at the alternate location within 90 days of dismissal or discontinuance shall be placed in default.
(c) Calculation of financial obligation.
An individual found to be in default will be required to pay the president, within five years from the date of default, all monies received, plus interest, plus liquidated damages, as determined by the following formula:
A = 2B (T−S) T
where “A” is the amount the president is entitled to receive; “B” is the sum of all payments made to the recipient and the interest on such amount which would be payable if at the time such awards were paid they were loans bearing interest at the maximum prevailing rate determined by the Higher Education Services Corporation; “T” is the total number of months in the recipient's period of obligated service; and “S” is the number of months of service actually rendered by the recipient. The minimum number of months in the recipient's period of obligated service shall be 24 months.
(a) Default.
A recipient shall be placed in default if he/she has not been granted a waiver or deferral by the commissioner and: