340.347. Liability for amounts paid by program, when--breach of contract, amount owed to state. - Missouri Statutes

Liability for amounts paid by program, when--breach of contract,amount owed to state.

340.347. 1. An individual who has entered into a written contractwith the department or an individual who is enrolled at the college andfails to maintain an acceptable level of academic standing or voluntarilyterminates such enrollment or is dismissed before completion of such courseof study or fails to become licensed pursuant to this chapter within oneyear after graduation shall be liable to the state for the amount which hasbeen paid on such individual's behalf pursuant to the contract.

2. If an individual breaches the written contract of the individualby failing either to begin such individual's service obligation or tocomplete such service obligation, the state shall be entitled to recoverfrom the individual an amount equal to the sum of:

(1) The total of the amounts paid by the state on behalf of theindividual, including interest; and

(2) An amount equal to the unserved obligation penalty, which is thetotal number of months of obligated service which were not completed by anindividual, multiplied by five hundred dollars.

3. The department may act on behalf of a qualified community torecover from an individual described in subsections 1 and 2 of this sectionthe portion of a loan repayment paid by such community for such individual.

(L. 2001 S.B. 462, A.L. 2007 S.B. 320)