Arizona Laws 15-1745. Contract with student certified by board
A. Before certifying a student to the commission the board, on behalf of this state, shall enter into a written contract with the student. The contract shall set forth the methods and terms of repayment by the student to this state and shall be on terms and conditions and in a form provided by the board. The contract shall provide:
Terms Used In Arizona Laws 15-1745
- Board: means the Arizona board of regents or its successor. See Arizona Laws 15-1741
- Commission: means the western interstate commission for higher education. See Arizona Laws 15-1741
- Contract: A legal written agreement that becomes binding when signed.
- Course: means organized subject matter in which instruction is offered within a given period of time and for which credit toward promotion, graduation or certification is usually given. See Arizona Laws 15-101
- Course of study: means a list of required and optional subjects to be taught in the schools. See Arizona Laws 15-101
- Current year: means the fiscal year in which a school district is operating. See Arizona Laws 15-901
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fiscal year: means the year beginning July 1 and ending June 30. See Arizona Laws 15-101
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- Month: means a calendar month unless otherwise expressed. See Arizona Laws 1-215
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
- United States: includes the District of Columbia and the territories. See Arizona Laws 1-215
1. That the student shall within one year after completing his professional education and internship begin the practice of his profession within Arizona. If the student engages in postgraduate studies and does so without a lapse of more than one year following the completion of his professional course, he shall begin practice within this state within one year after completing the graduate studies. If the student is involuntarily inducted into military service, or for other cause beyond his control deemed sufficient by the board is unable to begin the practice of his profession within one year after completing his professional education, internship and any graduate studies, he shall begin practice within this state within one year after completing his required military service or the termination of such other cause.
2. That if the student engages in the practice of his profession within this state or while completing military service resulting from involuntary induction, his indebtedness to this state may be discharged in one of the following ways:
(a) By payment to this state of all sums expended by this state for and in behalf of the student with interest at the rate prescribed in subsection B of this section.
(b) For each year of practice or internship within this state or in military service there shall be discharged his obligation for one academic year of study for which a portion of the cost was paid by this state, except that each six months of practice shall discharge his obligation for one academic year of study if such practice is confined to a locality within the state where there is an exceptional need for his professional services as determined and certified by the Arizona medical board or licensing board of his profession.
3. That if the student fails to complete the required course of professional study, or if the course of study is interrupted by one school year or more for a cause or causes not resulting from involuntary induction into military service or other cause beyond his control deemed sufficient by the board, or if the student fails to practice his profession within the state for such continuous time as completely discharges his obligation, except for delays resulting from an excusable cause as prescribed in this section, the entire sum paid for or on behalf of the student by this state and not repaid or discharged as herein provided shall be due and payable forthwith with interest at the rate prescribed in subsection B of this section. The board may extend the time of payment over a period not exceeding fifteen years and shall not require payment of interest during the existence of any excusable cause as prescribed in this section.
4. That if the student does not begin practice in this state within the time prescribed in this section but shall have repaid an agreed part of the sum expended by this state in his behalf, the board may permit him to discharge the balance of his obligation by subsequent practice within this state.
5. That in the event of the death of the student during the period of his education, internship or practice, his obligation to this state under this article shall cease except as to any portion that is then due.
B. The interest rate for a student’s contract is the rate in effect for the fiscal year during which the student begins the approved course of professional study. The board shall establish the interest rate by November 1 of the current year for the following fiscal year. The board shall establish a rate equal to the average interest rate of auctioned ninety-one day United States treasury bills over the twenty-four month period ending September 30 of the current year, except that the board may round the rate to the nearest one-half per cent. Accrual of interest charges provided by the contract begins on the first day of the first complete month following graduation of the student or, for students who fail to complete their required course of study, the first day of the first complete month following the date when the student was no longer enrolled.