§ 23-14.1-9 - Penalty for failure to complete contract. - Rhode Island Statutes

SECTION 23-14.1-9

   § 23-14.1-9  Penalty for failure tocomplete contract. – (a) If the recipient of a loan repayment fails, without justifiable cause, topractice pursuant to the terms and conditions of his or her contract with theauthority, a penalty for the failure to complete the contract will be imposed.If the recipient fails to complete the period of obligated service, he or sheshall be liable to the state of Rhode Island for:

   (1) An amount equal to the total paid on behalf of therecipient; and

   (2) An unserved obligation penalty equal to the number ofmonths of obligated service not completed by the recipient multiplied by onethousand dollars ($1,000).

   (b) If the recipient fails to complete one year of service,he or she shall be liable to the state of Rhode Island for:

   (1) An amount equal to the total paid on behalf of therecipient; and

   (2) An unserved obligation penalty equal to the number ofmonths in the full period multiplied by one thousand dollars ($1,000).

   (c) Any amount owed shall be paid to the State of RhodeIsland within one year of the date that the recipient is in breach of contract.

   (d) Where the director, subject to the approval of the board,determines that there exists justifiable cause for the failure of a recipientto practice pursuant to the terms and conditions of the contract, he or she mayrelieve the recipient of the obligation to fulfill any or all of the terms ofthe contract.