(2)__A loan recipient who, upon conclusion of the recipient's professional education, including any fellowships, elects to serve as a practitioner of dental medicine in an underserved area is forgiven 25% of the original outstanding indebtedness for each year of that practice.

B.__Loans must be repaid over a term no longer than 10 years, except that the chief executive officer may extend an individual's term as necessary to ensure repayment of the loan.__Repayment must commence when the loan recipient completes, withdraws from or otherwise fails to continue dental education.

C.__A loan recipient serving an underserved population or area pursuant to paragraph A, subparagraph (2) must serve all patients regardless of ability to pay insurance or payment source.

6.__Default.__A loan recipient who agrees to practice:

A.__For 2 years in an underserved area and for any reason fails to complete the period of obligated service is liable to the authority for an amount equal to the sum of the total amount paid by or on behalf of the authority to or on behalf of the recipient under the contract and an amount equal to the unserved obligation penalty;

B.__For more than 2 years in an underserved area and for any reason fails to complete at least 2 years of the period of obligated service is liable to the authority for an amount equal to the unserved obligation penalty; and

C.__For more than 2 years in an underserved area and for any reason fails to complete the period of obligated service after completing at least 2 years of obligated service is liable to the authority for an amount equal to the sum of the total amounts paid by the authority to or on behalf of the loan recipient under the contract for any period of obligated service not served and $10,000, if the loan recipient fails to give the authority at least one year's prior notice of intention to breach the contract.

For purposes of this subsection, the unserved obligation penalty is an amount equal to the number of months of obligated service that were not completed by the loan recipient multiplied by $1,000, except that if the loan recipient fails to complete one