Ch. 670                          MARVIN MANDEL, Governor                             1397

READ AS FOLLOWS:

13.

(A)    THERE IS HEREBY ESTABLISHED A REVOLVING FUND
MEDICAL AND DENTAL EDUCATION LOAN PROGRAM WHICH
SHALL BE MANAGED BY THE HIGHER EDUCATION LOAN
CORPORATION FOR THE PURPOSE OF IMPROVING THE MEDICAL
EDUCATIONAL OPPORTUNITIES OF PERSONS WHO ARE RESIDENTS
OF THE STATE.

(B)  AS USED IN THIS SECTION, "SCHOOL OF MEDICINE" MEANS
ANY MEDICAL OR DENTAL SCHOOL APPROVED BY THE
CORPORATION. "AREA OF NEED" MEANS A GEOGRAPHICAL AREA
WITHIN THIS STATE WHICH THE [[STATE]] DEPARTMENT OF
HEALTH AND MENTAL HYGIENE, IN ASSOCIATION WITH THE
MEDICAL AND CHIRURGICAL FACULTY OF MARYLAND AND
OTHER PROFESSIONAL GROUPS, DETERMINES TO HAVE AN ACUTE
NEED FOR GENERAL PRACTITIONERS OF MEDICINE OR
DENTISTRY.

(C)   ELIGIBILITY FOR A LOAN UNDER THIS SECTION SHALL BE
LIMITED TO PERSONS (1) WHO HAVE BEEN RESIDENTS OF THIS
STATE FOR AT LEAST FIVE YEARS PRECEDING THE GRANT OF A
LOAN, (2) WHOSE FINANCIAL NEEDS AND RESOURCES MEET THE
REQUIREMENTS AS DETERMINED BY RULES AND REGULATIONS
ADOPTED AND PROMULGATED BY THE CORPORATION, WHICH
REQUIREMENTS MUST ASSURE THAT A DEFINITE FINANCIAL
NEED IS A PREREQUISITE TO THE RECEIPT OF A LOAN, AND (3)
WHO FURNISH A NOTE IN AN AMOUNT AND WITH SECURITY AS
DETERMINED BY THE CORPORATION, CONDITIONED THAT THE
APPLICANT, UPON RECEIPT OF THE M.D. OR D.D.S. DEGREE AND
FOLLOWING A DESIRED PERIOD OF INTERNSHIP AND RESIDENCY
WILL ENGAGE IN THE GENERAL PRACTICE OF MEDICINE OR
DENTISTRY IN AN AREA OF NEED FOR A PERIOD OF NOT LESS
THAN FOUR YEARS.

(D)  LOANS UNDER THIS SECTION MAY BE MADE TO STUDENTS
WHO ARE ACCEPTED AT OR ATTENDING MEDICAL OR DENTAL
SCHOOLS AT COLLEGES AND UNIVERSITIES BOTH WITHIN AND
WITHOUT THIS STATE. APPLICANTS SHALL SUBMIT AN
APPLICATION TO THE CORPORATION ON FORMS PREPARED BY IT.
FROM THE QUALIFIED APPLICANTS WHO APPLY, THE
CORPORATIONS SHALL SELECT ANNUALLY AT LEAST TWENTY
PERSONS TO RECEIVE LOANS UNDER THIS SECTION.

(E)  THE LOANS SHALL BE HELD FOR A TOTAL PERIOD OF NOT
MORE THAN FOUR YEARS, AND DURING THE PERIOD MAY BE
HELD ONLY AS LONG AS THE BORROWER IS SATISFACTORILY
PROGRESSING TOWARD THE M.D. OR D.D.S. DEGREE. EACH LOAN
SHALL BE IN AN AMOUNT NOT TO EXCEED FIFTEEN HUNDRED
DOLLARS ($1,500) ANNUALLY FOR TUITION, FEES AND OTHER
COSTS FOR THE STUDENT. THE CORPORATION IS AUTHORIZED TO
RELEASE THE BORROWER FROM THE OBLIGATION OF THE NOTE
TO THE EXTENT OF ONE-FOURTH (1/4) OF THE TOTAL AMOUNT
BORROWED FOR EACH YEAR ENGAGED IN THE PRACTICE OF
MEDICINE OR DENTISTRY IN AN AREA OF NEED AS DEFINED IN
THIS SECTION. IF THE STUDENT VIOLATES THE CONDITIONS OF A