(1) If a recipient fails to complete the service obligation, the recipient shall:
- (a) pay a penalty twice the total amount of the award, on a prorated basis, according to a schedule established by the loan repayment contract;
- (b) pay 12% annum interest on the unpaid penalty; and
- (c) pay all costs and expenses incurred, including attorney fees, in collection of penalty.
- (2) If a recipient is in breach of contract, the recipient shall begin to repay within 30 days of breach.
- (3) If a recipient does not begin to repay within 30 days, the department may submit for immediate collection of the total amount of the penalty.
- (4) A recipient shall repay the penalty in no less than one year of breach of contract.
- (5) A recipient shall make quarterly payments, no less than one-fourth of the total amount of the penalty.
- (6) The total amount of the penalty shall be determined from the end of the month in which breach of contract was made.
- (7) Recovered funds and damages collected under this section shall be deposited as dedicated credits to be used to carry out the act.
KEY: rural, physicians, loan repayments, hospitals
Date of Last Change: November 6, 2023
Notice of Continuation: June 17, 2025
Authorizing, and Implemented or Interpreted Law: 26B-4-703