Page:United States Statutes at Large Volume 90 Part 2.djvu/819

 PUBLIC LAW 94-484—OCT. 12, 1976

90 STAT. 2287

liable to the United States for the amount which has been paid to him, OT^bn his behalf, under the contract. ^ "(c) If an individual breaches his written contract by failing (for any reason) either to begin such individual's service obligation in accordance with section 752 or 753 or to complete such service obligation, the United States shall be entitled to recover from the individual an amount determined in accordance with the formula

-3*(^0 in which 'A' is the amount the United States is entitled to recover. '0' is the sum of the amount paid under this subpart to or on behali of the individual and the interest on such amount which would be payable if at the time it was paid it was a loan bearing interest at the maximum legal prevuiling rate, as determined by the Treasurer of the United States; 't' is the total number of months in the individual's period of obligated service; and 's' is the number of months of such period served by him in accordance with section 752 or a written agreement under section 753. Any amount of damages which the United States is entitled to recover under this subsection shall, within the one year period beginning on the date of the breach of the written contract, be paid to the United States. "(d)(1) Any obligation of an individual under the Scholarship Program (or a contract thereunder) for service or payment of damages shall be canceled upon the death of the individual. "(2) The Secretary shall by regulation provide for the waiver or suspension of any obligation of service or payment by an individual under the Scholarship P r o - a m (or a contract thereunder) whenever compliance by the individual is impossible or would involve extreme hardship to the individual and if enforcement of such obligation with respect to any individual would be unconscionable. "(3) Any obligation of an individual under the Scholarship Program (or a contract thereunder) for payment of damages may be released by a discharge in bankruptcy under title 11 of the United States Code only if such discharge is granted after the expiration of 11 USC 1 et seq. the five-year period beginning on the first date that payment of such damages is required. "SPECIAL GRANTS FOR FORMER CORPS MEMBERS TO ENTER PRIVATE PRACTICE

"SEC. 755. (a) The Secretary may make one grant to an individual 42 USC 294x. (other than an individual who has entered into an agreement under section 763)— "(1) who has completed his period of obligated service in the Corps, and "(2) who has agreed in writing— Agreement. "(A) to engage in the private full-time clinical practice of his profession in a health manpower shortage area (designated under section 332 and described in paragraphs (1) Ante, p. 2270. and (2) of section 753(a)) for a period (beginning not later than one year after the date he completed his period of obligated service in the Corps) of not less than one year; " (B) to conduct such practice in accordance with the provisions of section 753(b)(1); and ' "(C) to such additional conditions as the Secretary may require to carry out the purposes of this section;

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