Part IV. Contracts
12VAC5-542-80. Contract provisions.
Prior to the payment of money to a scholarship awardee, the commissioner shall enter into a contract with the recipient. The contract shall:
1. Provide that the recipient will pursue the nurse practitioner/nurse midwife course of the designated school until graduation and will pursue full-time practice as a nurse practitioner or nurse midwife within two years following completion of training and for a period of years equal to the number of annual scholarships awarded. The area of employment must be on the list of Virginia medically underserved areas approved by the State Board of Health and in an employment setting that provides services to persons who are unable to pay for the service and that participates in all government sponsored insurance programs designed to assure access of covered persons to medical care services on the date of commencement of contract obligation fulfillment.
2. Provide that the recipient will not voluntarily obligate himself for military service prior to completion of the repayment period.
3. Provide for termination of the contract by the recipient while the recipient is enrolled in nurse practitioner or nurse midwife school, upon the recipient's notice and immediate repayment to the Commonwealth of the total amount of the scholarship funds plus interest at the prevailing bank rate for similar amounts of unsecured debt, computed from the date of receipt of funds by the recipient.
4. Provide that if the recipient fails to maintain satisfactory academic progress the recipient may, upon certification by the Nursing Scholarship Committee, be relieved of the contract obligation to engage in full-time nurse practitioner/nurse midwife practice upon repayment to the Commonwealth of the total amount of scholarship funds received plus interest at the prevailing bank rate for similar amounts of unsecured debt, computed from the date of receipt of funds by the recipient.
5. Provide that if the recipient is in default due to death or permanent disability so as not to be able to engage in nurse practitioner/nurse midwife practice, the recipient, or his personal representative, may be relieved of the obligation under the contract to engage in full-time practice upon repayment to the Commonwealth of the total amount of scholarship funds received plus interest at the prevailing bank rate for similar amounts of unsecured debt from the date of receipt of scholarship funds. For recipients completing part of the practice obligation prior to becoming permanently disabled, the total amount of scholarship funds received and owed shall be reduced by the amount of the annual scholarship award multiplied by the number of years practiced. Unusual hardship may be reviewed by the board on a case-by-case basis.
6. Provide that individual cases of extraordinary hardship may be considered by the commissioner for forgiveness of payment or service.
7. Provide that any recipient of a scholarship who defaults by evasion or refusal to fulfill the obligation to practice for a period of years equal to the number of annual scholarships received shall reimburse the Commonwealth three times the total amount of the scholarship funds received plus interest on the tripled obligation amount at the prevailing bank rate of interest for similar amounts of unsecured debt.
8. Provide that for a recipient who fulfills only part of the contractual obligation, the total amount of scholarship funds received and owed shall be reduced by the amount of the annual scholarship, divided into months and multiplied by the number of months practiced in the appropriate area, and the remainder tripled as provided in subdivision 5 of this section.
Statutory Authority
§§ 32.1-12, 32.1-122.5, and 32.1-122.6:02 of the Code of Virginia.
Historical Notes
Derived from VR355-40-700 § 4.1, eff. August 1, 1994.