SECTIONS 2155-2167 - California Statutes

BUSINESS AND PROFESSIONS CODE

SECTION 2155-2167

2155. For the purposes of this article:
(a) "Division" means the Division of Licensing.
(b) "The practice of medicine" means all activities authorized by
a physician's and surgeon's certificate, except activities performed
in the course of employment as a public health officer, as a medical
school faculty member where teaching time is more than 25 percent of
the working day, or as a resident or first-year postgraduate trainee.
(c) "Area deficient in physician services" means:
(1) Any county in the state in which the number of physicians, not
employed by the federal government, engaged in the practice of
medicine is found by the division to be in a ratio of less than 100
for every 100,000 county residents, and which the division finds to
be in need of physician services.
(2) Any city or area within a county or city in the state which
the division finds to be lacking in adequate physician services.

2160. The interest to be paid shall be two percentage points less
than the authorized interest rate on California Water Bonds at the
time of the loan.

2163. The loan shall be repayable to the Contingent Fund of the
Medical Board of California in equal or graduated periodic
installments, according to a schedule agreed upon by the division and
the borrower, over a 10-year period which shall begin three years
after the student ceases to pursue a full-time course of professional
instruction, excluding from such 10-year period all periods, up to
three years, of (a) active duty performed by the borrower as a member
of the United States armed forces, or (b) nonmilitary public
services performed by the borrower which the division finds to be in
the public interest.

2164. Where any borrower who has obtained one or more loans under
this article engages in the practice of medicine in an area deficient
in physician services, 25 percent of the total of such loans plus
accrued interest on such amount which are unpaid as of the date that
such practice begins shall be cancelled thereafter for each year of
such practice.

2166. The liability to repay the unpaid balance of the loan and
accrued interest thereon shall be cancelled upon the death of the
borrower, or if the division determines that he or she has become
permanently disabled and is unable to engage in substantial gainful
activity.

2167. The division may assess a charge with respect to a loan made
under this article for failure of the borrower to pay all or part of
an installment when due and, in the case of a borrower who is
entitled to a deferment under Section 2163 or cancellation of part or
all of the loan under Section 2164 or 2166, for any failure to file
timely and satisfactory evidence of such entitlement. The amount of
any such charge may not exceed two dollars ($2) for each month by
which such installment or evidence is late, except that there shall
be no charge for the first month.