N.M. Admin. Code § 5.7.21.13

Current through Register Vol. 35, No. 21, November 5, 2024

Section 5.7.21.13 - CONTRACT

A contract shall be drawn between each student receiving a loan and the commission on behalf of the state of New Mexico. The contract shall:

A. provide for the payment by the commission of a specified sum as determined in Section 12 [now 5.7.21.12 NMAC];

B. state that the borrower shall return to New Mexico, upon degree completion, to begin service;

C. state that immediately upon completion or termination of the student's eligible profession education, all interest then accrued shall be capitalized;

D. state the conditions of repayment or forgiveness as detailed in Section 12 [now 5.7.21.12 NMAC];

E. state that the loan shall bear interest at the designated rate per annum from the date of disbursement until paid, make provision for conversion to a payout note as shown in Section 12 [now 5.7.21.12 NMAC], and state that interest will be charged on the unpaid balance of the principal only;

F. state the legal responsibilities of the borrower and that delinquent loans shall be reviewed for appropriate action, which may include referral to the office of the attorney general, if deemed necessary;

G. state that the commission may cancel a contract with a student for reasonable cause deemed sufficient by the WICHE commissioners;

H. state that in the event the borrower fails to make any payment when due, the entire indebtedness including interest due and accrued thereon shall, at the option of the commission, become immediately due and payable; and

I. state that jurisdiction and venue shall be proper in Bernalillo or Santa Fe county, New Mexico for purposes of any suit to enforce the contract.

N.M. Admin. Code § 5.7.21.13

9/30/97; Recompiled 10/31/01