Section 70. Contract provisions and default

A. Prior to the payment of money to a scholarship recipient, the commissioner shall enter into a contract with the recipient. The contract shall:

1. Provide that the recipient shall pursue a nurse educator program of the designated school until graduation and shall begin full-time (as determined by the institution) teaching service as a nurse educator within one year (12 months) following completion of training and for a period of two years per annual scholarship award. Employment must be at a Virginia nursing school program.

2. Provide that the recipient shall not voluntarily obligate himself for military service prior to completion of the repayment period.

3. Provide that the recipient shall notify the commissioner in writing of his proposed teaching location within 30 days of his employment at a teaching location.

4. Provide that the recipient may request approval of a change of teaching location. The commissioner in his discretion may approve such a request.

5. Provide that if the recipient (i) fails to maintain satisfactory academic progress; (ii) is placed on academic or other probation; (iii) is suspended or expelled from school; or (iv) voluntarily withdraws from school, the recipient may, upon certification by the commissioner, be relieved of the contract obligation to engage in full-time teaching service upon repayment to the Commonwealth of the total amount of scholarship funds received plus applicable interest.

6. Provide that if the recipient defaults while still in a nursing education program and notifies the commissioner in writing that the recipient will not provide teaching services in a nursing program as required, the recipient will make restitution to the Commonwealth of Virginia by repayment of all scholarship award or awards plus applicable interest on the amount of such restitution.

7. Provide that if the recipient is in default due to death or permanent disability so as not to be able to engage in teaching service, the recipient, or his personal representative, may be relieved of the obligation under the contract to engage in full-time teaching service upon repayment to the Commonwealth of the total amount of scholarship funds received plus applicable interest. For recipients completing part of the teaching obligation prior to becoming permanently disabled, or in the event of death, the total amount of scholarship funds owed shall be reduced by the proportion of obligated years served.

8. Provide that if the recipient is in default due to death or permanent disability so as not to be able to engage in full-time teaching service at a Virginia nursing school program, the obligation to make restitution may be waived by the commissioner upon application of the recipient or the recipient's estate to the commissioner.

9. Provide that individual cases of hardship may be considered by the commissioner for forgiveness of payment or service.

10. Provide that any recipient of a scholarship who defaults by evasion or refusal to fulfill the obligation to teach full time at a Virginia nursing school program for the full number of years required at any time following completion of his nurse educator program shall make restitution by repaying all monetary scholarship awards, plus penalty and applicable interest on such restitution to the Commonwealth of Virginia.

11. Provide that partial fulfillment of the recipient's obligation shall reduce the amount of restitution plus penalty and applicable interest due by an amount of money equal to the same percentage of time employed.

B. With respect to default, the contract shall provide that a recipient will be considered to be in default on the date:

1. The commissioner is notified in writing by the recipient that he does not intend to fulfill the contractual obligation;

2. The recipient has not accepted a placement and commenced the period of obligated practice as provided for in subdivision A 1 of this section; or

3. The recipient leaves without the consent of the commissioner the place of full-time teaching service that the commissioner has approved for fulfillment of the contractual obligation.

Historical Notes

Derived from Volume 29, Issue 07, eff. January 17, 2013.

Statutory Authority

§§ 32.1-12 and 32.1-122.6:01 of the Code of Virginia.