1. (c) In the event that a medical or dental student fails to commence his or her service obligation as provided in chapter 576 of the Laws of 1975, as amended, and, when applicable, fails to enter into an agreement for the reimbursement of the State pursuant to subdivision (b) of this section, the full amount of the reimbursement shall be paid to the State not later than one year from the failure to commence the service obligation.
2. (d) Failure to fulfill a service obligation or to reimburse the State as required by chapter 576 of the Laws of 1975, as amended, and by this section or in accordance with a reimbursement agreement, may be considered as evidence of poor moral character or of unprofessional conduct in licensure or professional discipline proceedings. The commissioner may also forward cases of default in meeting the reimbursement obligation to the Attorney General for civil collection proceedings.

(a) Applicability.

Reimbursement of the State by medical and dental students who have attended medical and dental schools pursuant to contracts authorized by chapter 576 of the Laws of 1975, as amended, and who fail to perform the obligation to practice for three years in an area with a shortage of physicians or dentists, shall be made in accordance with chapter 576 of the Laws of 1975, as amended, and the provisions of this section.

(b) Reimbursement agreements.

The commissioner may enter into agreements with medical and dental students obligated to reimburse the State pursuant to chapter 576 of the Laws of 1975, as amended, to provide for the manner of repayment of the obligation. For students who attended medical or dental school pursuant to contracts on behalf of which payments were made prior to the 1982-83 academic year, such agreements may provide for reimbursement of the State by such students in equal monthly payments of not less than $250 and over a period of not to exceed 15 years.