Page:United States Statutes at Large Volume 101 Part 1.djvu/1028

 101 STAT. 998

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PUBLIC LAW 100-177—DEC. 1, 1987

"(iv) To the extent not otherwise prohibited by law, the Secretary shall disclose to all appropriate credit reporting agencies information relating to damages of more than $100 that are entitled to be recovered by the United States under this subsection and that are delinquent by more than 60 days or such longer period as is determined by the Secretary."; (3) by redesignating subsection (c) as subsection (d); (4) by inserting after subsection O> the following new t) subsection: "(c)(1) If (for any reason not specified in subsection (a) or section 338F(d)) an individual breaches the written contract of the individual under section 338B by failing either to begin such individual's service obligation in accordance with section 338C or 338D or to complete such service obligation, the United States shall be entitled to recover from the individual an amount equal to the sum of— "(A) in the case of a contract for a 2-year period of obligated service— "(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any ,^." period of obligated service; and "(ii) an amount equal to the unserved obligation penalty; "(B) in the case of a contract for a period of obligated service Z* of greater than 2 years, and the breach occurs before the end of '" the first 2 years of such period— "(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any 1(. u. period of obligated service; and "(ii) an amount equsil to the unserved obligation penalty; and
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«(Q) ijj tjjg QQgQ Qf Q^ contract for a period of obligated service ' of greater than 2 years, and the breach occurs after the first 2 years of such period— rsc "(i) the total of the amounts paid by the United States under section 338B(g)(2) on behalf of the individual for any "(ii) if the individual breaching the contract failed to give >'j;v the Secretary notice, that the individual intends to take action which constitutes a breach of the contract, at least 1 year (or such shorter period of time as the Secretary determines is adequate for finding a replacement) prior to the breach, $10,000. "(2) For purposes of paragraph (1), the term 'unserved obligation penalty' means the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000. "(3) The Secretary may waive, in whole or in part, the rights of the United States to recover amounts under this section in any case of extreme hardship or other good cause shown, as determined by the Secretary. "(4) Damages that the United States is entitled to recover shall be paid in accordance with subsection (b)(l)(B)."; (5) in subsection (d) (aa redesignated by clause (3) of this subsection), by inserting "or the Loan Repayment Program (or a •^4 contract thereunder)" after "thereunder) each place it appears; and
 * t " period of obligated service not served; and

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