(a) General rule.-- (1) Except as provided in paragraph (2), an eligible member who fails to meet the six-year service obligation of this subchapter or to meet other requirements established by the Adjutant General or the agency is liable to the Commonwealth for repayment of all or part of any grant payments made. The Adjutant General shall notify the agency if an eligible member fails to complete the service obligation, and the promissory note under section 3204(b) (relating to grants) shall be repaid by the eligible member upon demand by the agency on a schedule as the agency may determine. (2) Notwithstanding section 3204(b), an eligible member who fails to meet the six-year service obligation of this subchapter or meet other requirements established by the Adjutant General shall only be liable to the agency for a proportional share of the promissory note under section 3204(b). The agency shall reduce the amount owed by an eligible member based off the time of service obligation completed. (b) Forgiveness of recoupment.-- The Adjutant General shall notify the agency and the agency shall forgive recoupment of all or part of an eligible member's grant payments if the Adjutant General determines that the eligible member's failure to fulfill the six-year service obligation was the result of one of the following: (1) Death. (2) (Deleted by amendment). (2.1) Discharge because of a medical determination that is not due to the eligible member's misconduct. (3) (Deleted by amendment). (3.1) Discharge at the convenience of the department or the Pennsylvania National Guard. (4) The existence of other compelling circumstances that warrant forgiveness.
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