(a) Liability.-- An eligible member who fails to meet the eight-year service obligation of this subchapter or other requirements established by the Adjutant General or the agency shall be liable to the Commonwealth for repayment of all or part of benefit 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 3225(b) (relating to benefit) shall be repaid by the eligible member upon demand of the agency on a schedule as the agency may determine. (b) Forgiveness of recoupment.-- Upon notification by the Adjutant General, the agency shall forgive recoupment of all or part of an eligible member's benefit payments if the Adjutant General determines that the eligible member's failure to fulfill the eight-year service obligation is the result of one of the following: (1) The eligible member's death. (2) The eligible member's discharge because of disability incurred in the line of duty. (3) The eligible member's discharge because of a medical determination that the eligible member is medically unfit for duty if the medical condition is outside the eligible member's control and is not due to the eligible member's misconduct. (4) The existence of other compelling circumstances that warrant forgiveness.
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