completion of academic training, for each academic year of support or fraction therefor received under this program: Provided, however, That in no event shall a recipient serve less than two years.

(b) At least one-half the total period of service required by paragraph (a) to be performed by each recipient shall be spent providing health care and services: (1) In an area designated under section 329(b) of the Act, as a critical health manpower shortage area; (2) as a member of the Indian Health Service or Bureau of Medical Services and in an area determined by the Secretary (under section 329 of the Act or otherwise) to have a health manpower shortage; or (3) in connection with any program designated by the Secretary, for the provision of health care and services in such an area.

(c) For recipients receiving a degree from a school of medicine, osteopathy, or dentistry, the commencement of a period of obligated service may be deferred for a period of time not to exceed one year for internship (or equivalent training) and for good cause shown, at the option of the Secretary for an additional period of time for residency training. Such periods of internship and residency shall not be creditable in satisfying an active duty service obligation, unless such internship and residency is served in a facility of the Public Health Service, or other facility of the National Health Service Corps.

(d) For recipients receiving degrees in other health-related specialties the obligated service period will commence upon completion of their academic training.

§ 62.8 Failure to perform.

(a) If, for any reason, a participant fails to complete an active duty service obligation, such participant shall be liable for the payment of an amount equal to the scholarship payments, tuition and other educational fees paid, plus interest at the maximum legal prevailing rate running from the date such payments were made. Any amount which the United States is entitled to recover under this paragraph, shall within the three year period beginning on the date on which it is de

termined that a breach occurred, be paid to the United States. For the purpose of this paragraph maximum legal prevailing rate of interest shall mean the maximum permissible rate prescribed by the District of Columbia Code on the day of breach applicable to this type of debt.

(b) When a person undergoing training in the program terminates academic training, he shall be liable for repayment to the United States for an amount equal to the cost of tuition and other educational expenses paid to or for such person from Federal funds plus any scholarship payments received by such person under the program. Repayment of such amount shall be within three years of the date of termination.

§ 62.9 Waiver or suspension.

(a) A person who fails to complete an active duty service obligation or who fails to complete academic training may seek waiver or suspension of any obligation incurred pursuant to § 62.7 upon written request to the Secretary setting forth the basis, circumstances and causes which support the requested action.

(b) The Secretary may waive or suspend any obligation under § 62.7 with respect to any individual whenever compliance by such individual

(1) Is impossible or

(2) Would involve extreme hardship to such individual and if enforcement of such obligation with respect to any such individual would be against equity and good conscience.

(c) For the purpose of paragraph (b)(1) of this section compliance with an obligation by an individual will be deemed impossible, and such compliance will be waived, where the Secretary determines, on the basis of such information and documentation as he may require that the individual has died or suffers from a physical or mental disability that results in the inability of such individual to perform the services or other activities which would be necessary in order to comply with the obligation.

(d) For the purpose of paragraph (b)(2) of this section in determining whether to waive or suspend any or all of indebtedness or service obligation of

an individual as imposing an undue hardship and being against equity and good conscience, the Secretary on the basis of such information and documentation as he may require, will take into consideration the following:

(1) The individual's present financial resources and obligations;

(2) The individual's estimated future financial resources and obligations;

(3) The extent to which the individual is practicing the profession for which support was provided in a manner which is similar to and consistent with the position which such individual would have occupied in the Public Health Service or the Corps;

(4) The extent to which the individual has problems of a personal nature, e.g. physical or mental disability, terminal illness in the immediate family, which so intrude on the individual's ability to perform as to raise a presumption that the individual will be unable to perform the obligations incurred.

63.5 Terms and conditions of award. 63.6 Termination of traineeships. 63.7 Appropriate Institute.

AUTHORITY: Sec. 215, 58 Stat. 690, secs. 301, 402, 403, 58 Stat. 691, 707, sec. 303, 60 Stat. 423, secs. 412, 422, 62 Stat. 464, 598, sec. 433, 64 Stat. 444; 42 U.S.C. 216, 241, 282, 283, 242a, 287a, 288a, 289c.

SOURCE: 21 FR 9868, Dec. 12, 1956, unless otherwise noted.

§ 63.1 Nature and purpose of traineeships.

(a) A National Institutes of Health traineeship is an award of funds to an individual for his subsistence during a period in which he is acquiring advanced training in the diagnosis, prevention or treatment of diseases of public health significance. The purpose of such traineeships is to make available in the United States for the community effort against such diseases an increased number of persons

having special competence in such diagnosis, prevention or treatment.

(b) A National Library of Medicine Traineeship is an award of funds to an individual for his subsistence and other expenses during a period in which he is acquiring advanced training in the field of medical library science, in related fields pertaining to sciences related to health, or in the field of communication of health sciences

information.

[21 FR 9868, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

§ 63.2 Minimum qualifications.

Minimum qualifications for any traineeship shall be established by the Director of the appropriate Institute with the approval of the Surgeon General, and shall be uniformly applicable to all applicants in each traineeship program of such Institute. Such minimum qualifications may include requirements as to age, physical or mental condition, academic degrees, professional or other training or experience and such other factors as may be necessary to the fulfillment of the purpose of the traineeship. To the extent the Surgeon General finds it not inconsistent with such fulfillment, however, he may in individual cases waive compliance with any minimum qualification so established if he determines that the applicant has substantially equivalent qualifications or has such special training, experience or opportunity for service as make an award particularly appropriate.

§ 63.3 Award of traineeships.

Subject to the regulations of this part, the Surgeon General or his delegate may award traineeships to those qualified applicants who are best able in his judgment to carry out the purpose of the traineeships. Such awards may be made in the name of the appropriate Institute.

§ 63.4 Benefits.

Each individual awarded a traineeship shall be entitled to the following benefits:

(a) A stipend fixed in amount by the Surgeon General and payable with respect to a period of one year or such other period, including extensions or

renewals, as may be specified by the Surgeon General or his delegate in making awards.

(b) An additional allowance, if requested by the trainee and approved in advance by the Surgeon General or his delegate, for travel, per diem and transportation not exceeding such amounts as may be prescribed by the Surgeon General.

§ 63.5 Terms and conditions of award.

All traineeship awards shall be subject to the following terms and conditions:

(a) Training must be carried out at an institution found by the Director of the appropriate Institute to provide a well-rounded course of instruction in the particular field in which the traineeship is awarded. A change in the training institution may be made only with the approval of such Director.

(b) No traineeship may be utilized to compensate, nor awarded as consideration, for personal services or employment of the trainee for the United States or for any other person.

(c) No payment shall be made to any citizen or noncitizen national of the United States receiving an award under the regulations in this part unless such citizen or noncitizen national has taken, subscribed to, and filed with the Public Health Service a written oath or affirmation in the following terms: "I do solemnly swear (or affirm) that I bear true faith and allegiance to the United States of America and will support and defend the Constitution and laws of the United States against all its enemies, foreign and domestic."

(d) Additional conditions consistent with the regulations in this part may be established by the Surgeon General or his delegate to the extent he finds them necessary to fulfill the purpose of the traineeship.

(e) A noncitizen national of the United States is a person, who, though not a citizen of the United States, Owes permanent allegiance to the United States.

(f) Payments made under awards pursuant to § 63.1(b) may be made to the trainee or the sponsoring institution. Except as may be otherwise prescribed by the Surgeon General, pay

ments shall be made in advance or by way of reimbursement and in monthly installments.

[21 FR 9868, Dec. 12, 1956, as amended at 30 FR 6072, Apr. 29, 1965; 31 FR 9505, July 13, 1966]

§ 63.6 Termination of traineeships.

The Surgeon General or his delegate may terminate a traineeship at any time upon request of the trainee, and shall terminate any traineeship prior to the date it would otherwise expire upon a determination, made or approved by the Surgeon General, either that the trainee's performance is unsatisfactory or that he is unfit or unable to carry out the purpose of the traineeship.

§ 63.7 Appropriate Institute.

As used in this part "appropriate Institute" shall mean the National Cancer Institute for traineeships in the field of cancer, the National Institute of Mental Health for traineeships in the field of mental disorders, the National Heart Institute for traineeships in the field of cardiovascular diseases, the National Institute of Dental Research for traineeships in the field of dental diseases and conditions, the National Institute for Allergy and Infectious Diseases for traineeships in the field of allergy and infectious diseases, the National Institute of Arthritis and Metabolic Diseases for traineeship in the field of arthritis, rheumatism and metabolic disease, the National Institute of Neurological Diseases and Blindness for traineeships in the field of epilepsy, cerebral palsy, multiple sclerosis, other neurological and sensory disorders, and any other institute hereafter established by the Surgeon General under section 431 of the Public Health Service Act, as amended, for traineeships in the field of those diseases constituting the responsibility of such institute. "Appropriate Institute" shall also mean, with respect to awards pursuant to § 63.1(b), the National Library of Medicine.

[21 FR 9868, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

PART 64-NATIONAL INSTITUTES OF HEALTH AND NATIONAL LIBRARY OF MEDICINE TRAINING GRANTS

Sec.

64.1 Nature and purpose of training grants. 64.2 Application requirements. 64.3 Award of training grants. 64.4 Conditions to awards; general.

64.5 Additional conditions; institutional ex

penses.

64.6 Additional conditions; stipends. 64.7 Payments; repayment of unexpended balances; unauthorized expenditures. 64.8 Appropriate institute.

AUTHORITY: Sec. 215, 58 Stat. 690, as amended; 42 U.S.C. 216; sec. 433, 64 Stat. 444; 42 U.S.C. 289c.

SOURCE: 21 FR 9869, Dec. 12, 1956, unless otherwise noted.

§ 64.1 Nature and purpose of training grants.

(a) A national Institutes of Health training grant is an award of funds to a qualified educational or training institution, the objective of such grants being to make available for the community effort against diseases of public health significance an increased number of facilities providing adequate training and instruction, and an increased number of persons having special competence, in matters relating to the diagnosis, prevention and treatment of such diseases. Such a grant may have one or both of the following purposes:

(1) To defray the expenses of the institution in providing training and instruction in matters relating to the diagnosis, prevention or treatment of diseases within the responsibility of the appropriate Institute.

(2) To enable the institution to pay stipends and allowances to individuals with respect to a period in which they receive under the direction of such institution training and instruction in matters relating to such diagnosis, prevention or treatment.

(b) A National Library of Medicine training grant is an award of funds to a qualified educational or training institution, the objective of such a grant being to make available an increased number of facilities providing adequate training and instruction, and an increased number of persons having special competence in medical library

service and science and in the field of communication of information pertaining to sciences relating to health. Such a grant may have one or both of the following purposes:

(1) To defray the expenses of the institution in providing training and instruction in medical library service and science and in communication of health sciences.

(2) To enable the institution to pay stipends and allowances to individuals during the periods in which they receive, under the direction of such institution, training and instruction in such science and communication.

[21 FR 9869, Dec. 12, 1956, as amended at 31 FR 9505, July 13, 1966]

§ 64.2 Application requirements.

Training grants shall be awarded only to those public or other nonprofit institutions which file applications in such form and manner as may be prescribed by the Surgeon General. Such applications shall set forth, in addition to any other pertinent information that may be required, the name and qualifications of the program director who will be responsible for the training and instruction and the following information depending upon the purposes for which the grant is requested: (a) Institutional expenses. Applications which include a request for funds to meet institutional expenses shall set forth the nature and duration of the training and instruction program with respect to which the application is filed, the total amount requested and the purposes for which the funds will be used, stating separately the amounts requested for personal services and the amounts requested for equipment, supplies or other non-personal expenses.

(b) Stipends. Applications which include a request for funds to enable the institution to make payments to individuals receiving training shall state the nature and duration of the training and instruction to be provided, and the applicant shall also furnish information concerning the minimum qualifications required of the individuals to be trained or instructed, the rate of stipend and allowances to be paid, and the total amount requested for these purposes.

§ 64.3 Award of training grants.

Subject to the regulations in this part, the Surgeon General may award training grants to such eligible public or other nonprofit institutions as are best able in his judgment to carry out the purpose of such grants. Such grants may be made in the name of the appropriate Institute, but no such grant may be made unless it has been recommended by the national advisory council for such Institute.

§ 64.4 Conditions to awards; general.

All training grants awarded under the authority of this part shall be subject to the following conditions:

(a) No essential or significant reduction in the quality or duration of the training and instruction shall be made by the grantee institution unless approved by the Director of the appropriate Institute upon recommendation by the national advisory council for such Institute.

(b) No substitution may be made for the program director named in the application as responsible for the training and instruction unless the substitute director is found by the Director of the appropriate Institute to have substantially equivalent qualifications with respect to providing the training and instruction for which the grant was awarded.

(c) The fiscal and other records of the institution that relate to the training and instruction for which the grant was awarded shall be available for audit or other reasonable inspection by representatives of the Public Health Service.

(d) Additional conditions consistent with the regulations in this part may be imposed by the Director of the appropriate Institute prior to the award of any training grant if he determines that such conditions are necessary to carry out the purposes of such grant. § 64.5 Additional conditions; institutional

expenses.

Amounts awarded to enable institutions to defray the expenses of providing training and instruction shall be subject to the following conditions in addition to those set forth in § 64.4:

(a) The funds awarded may be expended solely for the training and in

struction program set forth in the application for the grant and for such other related purposes as are determined by the Director of the appropriate Institute to be necessary to such program.

(b) No part of the funds awarded may be used for the purchase of land or for the construction of buildings.

(c) No funds may be used for indirect costs or overhead in excess of the rate generally applicable to training grants at the time of the award.

§ 64.6 Additional conditions; stipends.

Amounts awarded to enable institutions to pay stipends and allowances to individuals receiving advanced training shall be subject to the following conditions in addition to those set forth in § 64.4:

(a) No part of the funds requested for stipend payments may be used for any other purpose unless approved by the Director of the appropriate Institute.

(b) No part of the amount awarded may be used as remuneration for employment or for the performance of personal services by the individuals receiving the training and instruction.

(c) No amount may be paid by the institution to any individual who, by reason of age, physical or mental condition, or other relevant factor would not, in the reasonable judgment of the institution, be able to make use of the training and instruction.

(d) No amount may be paid by the institution to an individual who does not meet the minimum qualifications for the training and instruction as established by the institution, nor shall any amount be paid to any individual who has failed to demonstrate satisfactory participation in the training in accordance with the usual standards and procedures of the institution.

§ 64.7 Payments; repayment of unexpended balances; unauthorized expenditures.

(a) Payments to an institution of amounts awarded under the regulations of this part may be made in advance and shall be in such amounts as are necessary in the judgment of the Director of the appropriate Institute to carry out the training program as