94- 457 C.M.R. ch. 617, § 5

Current through 2024-51, December 18, 2024

Section 457-617-5 - AGREEMENT REQUIREMENTS

Each loan recipient must sign an agreement with the Authority including at a minimum each of the following provisions:

1. The loan recipient, except loan recipients who withdraw from professional education or no longer reside in Maine, must provide the annual report to the Authority on forms supplied annually on or before the date indicated by the Authority as the due date.

2. Until the loan is satisfied, the loan recipient must report any change of address to the Authority within four weeks of any address change.

3.Repayment Terms

A. Upon compliance with all necessary procedures, the following practitioners who maintain the specified practice for at least 20 hours per week, will owe all principal plus interest on their outstanding obligations at the rate of 0% per annum:

(1) Primary health care physicians and general dentists practicing in a designated health professional shortage area.

(2) Veterinarians providing services to Maine residents with insufficient veterinary services and providing at least 20 hours per week of veterinary services to livestock.

B. Upon compliance with all necessary procedures, the following practitioners who maintain the specified practice for at least 20 hours per week attending to patients, will owe all principal plus interest on their outstanding obligations at the rate of 3% per annum:

(1) Primary health care physicians and general dentists practicing in Maine, but not in a designated health professional shortage area.

(2) Any physician practicing in an underserved specialty.

(3) Any physician providing services to a designated underserved group.

C. Loan recipients practicing in Maine, other than those identified in subsections A and B above, will owe all principal plus interest on their outstanding obligations at the rate of 5% per annum.

D. Loan recipients not practicing in Maine or who have withdrawn from professional education will owe all principal plus interest on their outstanding obligations at the rate of 8% per annum.

E. The repayment period will begin six months following completion of professional education, or upon withdrawal from school for whatever reason. The loan recipient is responsible for notifying the Authority of such completion of professional education or withdrawal from school.

F. Payments must be made in monthly installments on a repayment schedule established by the Authority.

G. Interest will begin to accrue at the beginning of the repayment period. The first monthly installment will be due one month following the date determined as the beginning of the repayment period.

H. Notwithstanding any other provision of this rule, if the loan recipient fails to return the annual report or any information requested by the Maine Department of Health and Human Services by the due date which shall be no less than 30 days after the mailing of the annual report by the Authority, the Authority may require the loan recipient to pay all principal plus interest on their outstanding obligations at the rate of 8% per annum.

I. The Maine Department of Health and Human Services, Office of Rural Health and Primary Care or any agency or bureau succeeding to its responsibilities may require a loan recipient requesting an interest rate benefit, excluding veterinarians, to report annually the level of service provided by the loan recipient to Medicaid and Medicare patients and in public health clinics. If the Office of Rural Health and Primary Care determines that the level of service provided was not reasonable, the Authority may refuse to grant any interest rate reduction for the period of the loan.

J.Default. If a payment is not made within 30 days following the due date the Authority may declare the loan in default and give the loan recipient 30 days to cure the default. If the loan recipient fails to cure the default after 30 days notice, the Authority may declare the entire amount due and payable including attorney's fees.

K.Deferment

(1) Deferments during the repayment period may be granted by the chief executive officer upon written request made to the chief executive officer by the loan recipient. The request must state the justification for the deferment and must include all supporting information and documentation. Deferments will be decided on a case by case basis. The decision of the chief executive officer shall be final. Deferments may be granted for each of the following reasons:

(a) Temporary disability of the borrower;

(b) Demonstration by the loan recipient that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;

(c) Such other reasons as the chief executive officer may approve.

(2) A deferment will not ordinarily be granted for a period greater than one year. However, upon request of the loan recipient, the chief executive officer may renew any deferment on a case-by-case basis.

(3) During the period of an approved deferment, simple interest will be assessed at the rate of 5%. At the conclusion of the deferment period the total outstanding balance including principal and interest shall be repaid within the years remaining in the ten year repayment period.

L.Loan Term. Loans must be repaid over a term no greater than ten years. The term may be extended upon a finding by the chief executive officer that such an extension is necessary to assure the repayment of the loan.

M.Death or Permanent Disability. On the death of a lone recipient as evidenced by a certified death certificate or on the total and permanent disability of a loan recipient, as certified by a licensed physician, all amounts remaining due from the recipient will be forgiven.

94- 457 C.M.R. ch. 617, § 5