
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 38USC7617]

 
                      TITLE 38--VETERANS' BENEFITS
 
              PART V--BOARDS, ADMINISTRATIONS, AND SERVICES
 
     CHAPTER 76--HEALTH PROFESSIONALS EDUCATIONAL ASSISTANCE PROGRAM
 
                   SUBCHAPTER II--SCHOLARSHIP PROGRAM
 
Sec. 7617. Breach of agreement: liability

    (a) A participant in the Scholarship Program (other than a 
participant described in subsection (b) of this section) who fails to 
accept payment, or instructs the educational institution in which the 
participant is enrolled not to accept payment, in whole or in part, of a 
scholarship under the agreement entered into under section 7603 of this 
title shall be liable to the United States for liquidated damages in the 
amount of $1,500. Such liability is in addition to any period of 
obligated service or other obligation or liability under the agreement.
    (b) A participant in the Scholarship Program shall be liable to the 
United States for the amount which has been paid to or on behalf of the 
participant under the agreement if any of the following occurs:
        (1) The participant fails to maintain an acceptable level of 
    academic standing in the educational institution in which the 
    participant is enrolled (as determined by the educational 
    institution under regulations prescribed by the Secretary).
        (2) The participant is dismissed from such educational 
    institution for disciplinary reasons.
        (3) The participant voluntarily terminates the course of 
    training in such educational institution before the completion of 
    such course of training.
        (4) The participant fails to become licensed to practice 
    medicine, osteopathy, dentistry, podiatry, or optometry in a State, 
    fails to become licensed as a registered nurse in a State, or fails 
    to meet any applicable licensure requirement in the case of any 
    other health-care personnel who provide either direct patient-care 
    services or services incident to direct patient-care services, 
    during a period of time determined under regulations prescribed by 
    the Secretary.
        (5) In the case of a participant who is a part-time student, the 
    participant fails to maintain employment, while enrolled in the 
    course of training being pursued by such participant, as a 
    Department employee permanently assigned to a Department health-care 
    facility.

Liability under this subsection is in lieu of any service obligation 
arising under the participant's agreement.
    (c)(1) If a participant in the Scholarship Program breaches the 
agreement by failing (for any reason) to complete such participant's 
period of obligated service, the United States shall be entitled to 
recover from the participant an amount determined in accordance with the 
following formula:

                                                            t-s

                                           A=3<greek-PH>   <3-ln (>----
                                                    <3-ln )>

                                                             t

In such formula:
        (A) ``A'' is the amount the United States is entitled to 
    recover.
        (B) ``<greek-PH>'' is the sum of (i) the amounts paid under this 
    subchapter to or on behalf of the participant, and (ii) the interest 
    on such amounts which would be payable if at the time the amounts 
    were paid they were loans bearing interest at the maximum legal 
    prevailing rate, as determined by the Treasurer of the United 
    States.
        (C) ``t'' is the total number of months in the participant's 
    period of obligated service, including any additional period of 
    obligated service in accordance with section 7616(b)(4) of this 
    title.
        (D) ``s'' is the number of months of such period served by the 
    participant in accordance with section 7613 of this title.

    (2) Any amount of damages which the United States is entitled to 
recover under this section shall be paid to the United States within the 
one-year period beginning on the date of the breach of the agreement.

(Added Pub. L. 100-322, title II, Sec. 216(b), May 20, 1988, 102 Stat. 
524, Sec. 4317; renumbered Sec. 7617 and amended Pub. L. 102-40, title 
IV, Sec. 402(b)(1), (d)(1), May 7, 1991, 105 Stat. 238, 239; Pub. L. 
102-83, Sec. 4(a)(3), (4), (b)(1), (2)(E), Aug. 6, 1991, 105 Stat. 404, 
405.)


                               Amendments

    1991--Pub. L. 102-40, Sec. 402(b)(1), renumbered section 4317 of 
this title as this section.
    Subsec. (a). Pub. L. 102-40, Sec. 402(d)(1), substituted ``7603'' 
for ``4303''.
    Subsec. (b)(1), (4). Pub. L. 102-83, Sec. 4(b)(1), (2)(E), 
substituted ``Secretary'' for ``Administrator''.
    Subsec. (b)(5). Pub. L. 102-83, Sec. 4(a)(3), (4), substituted 
``Department'' for ``Veterans' Administration'' in two places.
    Subsec. (c)(1). Pub. L. 102-40, Sec. 402(d)(1), substituted 
``7616(b)(4)'' for ``4316(b)(4)'' in subpar. (C) and ``7613'' for 
``4313'' in subpar. (D).

                  Section Referred to in Other Sections

    This section is referred to in section 7655 of this title.
