PARRIS N. GLENDENING, Governor                             Ch. 348

(b) The purpose of the Program is to:

(1)     Provide financial assistance to students enrolled at institutions of higher
education in the State; and

(2)     Address the economic development needs of the State.

(c) Subject to subsection (c-1) of this section, a recipient of an Economic
Development Student Assistance Grant under this subtitle shall:

(1)     Be a resident of the State;

(2)     Be selected by the Administration from qualified applicants based on
standards established and approved by the Commission;

(3)     Sign a letter of intent to enroll at an eligible institution in the State in an
eligible program as specified for each field in which there is a geographic or critical
shortage in this State as provided in this subtitle;

(4)     Furnish a guaranteed promissory note to the Commission or its designee
with security satisfactory to the Commission;

(5)     After completion of studies in an eligible program, perform the service
obligation as specified for each field in which there is a geographic or critical shortage as
provided in this subtitle; and

(6)     Satisfy any additional criteria the Commission may establish.

(c-1) The provisions of subsection (c)(4) of this section may be waived by the
Commission when a recipient is undergoing extraordinary circumstances as determined by
the Commission.

(d) A recipient of a grant under this subtitle may not receive any other form of
State-sponsored financial assistance.

(e) (1) The recipient of an Economic Development Student Assistance Grant
shall repay the Commission the funds received plus simple interest that is equal to the
prime rate plus 2 percent calculated from the date of the first payment of the grant award
under this subtitle for any portion of the award not forgiven if the recipient does not:

(i) Complete the specified degree, attain the licensure or certification
required, or fulfill other requirements as provided in this subtitle; and

(ii) Perform the service obligation as specified in each section of this
subtitle for 1 year for each year that the recipient has a grant awarded under this subtitle.

(2) (i) Except as otherwise provided in this section, the Administration
shall waive the repayment of the grant award at the rate of 1 year for each year that the
recipient performs the service obligation.

(ii) A recipient shall begin repayment at any time during the period
that the recipient is no longer performing the service obligation.

- 2355 -