13B.08.09.09

.09 Breach of a Recipient’s Obligations.

A. A Maryland Dent-Care Loan Assistance Repayment Program (MDC-LARP) recipient breaches the recipient’s obligations if:

(1) They do not begin their service obligation at an eligible practice site within 3 months of the close of the fiscal year in which the promissory note is executed; or

(2) The MDC-LARP recipient separates from the eligible practice site prior to fulfilling the service obligation and does not move to a site that complies with the program requirements.

B. An MDC-LARP recipient who breaches their obligation shall be subject to the total of the following financial penalties:

(1) The total amounts paid to, or on behalf of, the recipient for loan repayments for any period of obligated service not served;

(2) An amount equal to the number of months of obligated service not completed multiplied by $7,500; and

(3) Interest on the amounts in §B(1) and (2) of this regulation at the maximum legal prevailing rate, as determined by the Treasurer of the United States, from the date of breach.

C. In addition to the penalties in §B of this regulation, the State of Maryland is entitled to recover costs, fees, and expenses associated with the collection of these penalties, including attorney’s fees, as prescribed by State law or regulation

D. Amounts not paid within 1 year of the breach shall be subject to garnishment of wages, deductions in Medicaid payments, and other collection methods.

E. The Office of Student Financial Assistance shall report recipients who fail to pay their financial penalties within 1 year to the Maryland State Board of Dental Examiners. Recipients who fail to pay their financial penalties may be subject to disciplinary action by the Board of Dental Examiners.

F. An MDC-LARP recipient's financial obligation to pay damages may not be released by discharge of bankruptcy under Title 11 of the United States Code.