Section 457-618-5 - LOAN AGREEMENT REQUIREMENTSEach loan recipient must sign a Loan Agreement with the Authority including at minimum the following provisions:
1. The loan recipient, except 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. A loan recipient must make a commitment to undertake specific training, including clinical experiences in livestock or emergency and critical care medicine, and report such experiences annually to the Authority in the annual report. 4.ForgivenessA. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine full time in an area of Maine with insufficient veterinary services and whose practice is devoted to livestock or emergency and critical care at least 20 hours per week, or who practice veterinary medicine of any type in an underserved geographic region at least 20 hours per week, will be forgiven 25% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.B. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine full time in an area of Maine with insufficient veterinary services and whose practice is devoted to livestock or emergency and critical care or to veterinary medicine of any type in an underserved geographic region less than 20 hours per week, but not less than 10 hours per week, will be forgiven 12.5% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.C. Upon compliance with all necessary procedures, practitioners who practice veterinary medicine less than full time in an area of Maine with insufficient veterinary services but devote at least 10 hours per week to the care of livestock or emergency and critical care or veterinary medicine of any kind in an underserved geographic region will be forgiven 12.5% of their original outstanding indebtedness under this Program for each full year of practice during the repayment period.D. Loan recipients may receive partial loan forgiveness on a pro rata basis if they fulfill all the criteria but maintain the appropriate practice for less than a full calendar year. Loan recipients must notify the Authority as soon as practicable of the cessation of a practice allowing for loan forgiveness. The accrual of interest will commence one day after cessation of such a practice regardless of when notice is received. Cash payments will be due the earlier of one month after cessation of the practice or one month after the Authority has received notice.E. Loan recipients who practice in a situation which does not qualify them to receive forgiveness of their loan and later establish a practice which qualifies them to receive forgiveness during the ten-year repayment period may reduce the balance due through return service. Any monies due and payable for the time spent in the practice ineligible for forgiveness must be paid in cash and will not be forgiven for return service in Maine. Each year of return service will reduce the remaining balance including accrued interest by the applicable amount of the total original indebtedness.F. The Authority may, in the discretion of the chief executive officer, refuse to credit all or any part of forgiveness of any loan if the loan recipient fails to return the annual report within 30 days of the due date of such report or fails to provide any information requested by the Maine Department of Agriculture, Conservation and Forestry within 30 days of any such request. G. The Maine Department of Agriculture, Conservation and Forestry shall assist the Authority in determining whether the level of service provided by the loan recipient to livestock or in emergency and critical care setting or to veterinary medicine of any type in an underserved geographic region was reasonable. If the Maine Department of Agriculture, Conservation and Forestry determines that the level of service provided was not reasonable, the Authority may refuse to grant any loan forgiveness for the period of the loan.5.Repayment. All loan recipients who do not qualify for loan forgiveness must repay their indebtedness plus 5% annual interest on the following terms: A. 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.B. Payments must be made in monthly installments on a repayment schedule established by the Authority. C. 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.D. 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.E.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.F.Deferment. Deferments during the repayment period may be granted by the chief executive officer upon written request by a student. The request must state the reason 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 is final. Deferments may be granted for each of the following reasons: (1) The temporary disability of the borrower; (2) The borrower's temporary inability to meet the requirements necessary to obtain forgiveness of the loan, if the borrower evidences the intent to pursue one of the forgiveness provisions;(3) The demonstration by the borrower that immediate repayment of the loan will cause an undue hardship, as determined by the chief executive officer;(4) Such other reasons as the chief executive officer may approve.G.Death or Permanent Disability. On the death of a loan 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. 618, § 5