N.M. Admin. Code § 5.7.2.14

Current through Register Vol. 35, No. 17, September 10, 2024

Section 5.7.2.14 - CONTRACTS

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

A. provide for the payment by the department of a specified sum as determined in Section 5.7.2.13 NMAC;

B. state that the borrower shall select from the list of designated shortage areas at the time he/she is ready to begin service;

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

D. state the conditions of repayment or forgiveness as detailed in Section 5.7.2.13 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 5.7.2.13 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 referred to the department for appropriate action, which may include referral to the office of the attorney general, if deemed necessary;

G. state that the borrower's obligations of the contract with the department shall be binding on borrower's estate;

H. state that the department may cancel any contract on thirty (30) days written notice for any reasonable and sufficient cause;

I. 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 department, become immediately due and payable; and

J. 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 § 5.7.2.14

7/15/98, 5.7.2.14 NMAC - Rn, 5 NMAC 7.2.14, 6/29/01; A, 5/30/08