Chap. 528.—An ACT to amend and reenact Chapter 354, as amended, of the Acts
of Assembly of 1942, approved April 1, 1942, relating to establishment, terms
and conditions of certain medical scholarships, so as to expand the provisions
thereof and make an appropriation therefor. {S 76]

Approved April 6, 1948

Be it enacted by the General Assembly of Virginia:

1. That chapter three hundred fifty-four as amended, of the Acts
of Assembly of nineteen hundred forty-two, approved April one, nine-
teen hundred forty-two, be amended and reenacted as follows:

Section 1. The respective governing boards of the Medical College
of Virginia and of the University of Virginia are hereby authorized
and empowered to establish ten annual medical scholarships each, which
twenty scholarships hereby authorized shall be of the annual value of one
thousand dollars each, and shall be awarded and paid subject to the
conditions and restrictions set out in the following sections.

Section 2. Each applicant for any such scholarship must be a bona
fide resident of the State of Virginia when such scholarship is awarded.
The awards shall be made upon such basis, competitive or otherwise, as
may be determined by the president or other proper officer of the school
with due regard to the scholastic attainments, character, and adaptability
of the applicant for the service contemplated in such award; provided,
that no award shall be made if the applicant therefor fails to possess the
requisite qualifications.

Section 3. Before any such scholarship is awarded the applicant
shall sign a written contract under the terms of which he agrees to
pursue the medical course of the school awarding the scholarship until
his graduation, and, after graduating and completing a term of not
exceeding two years, as an interne at some hospital or institution
approved by the school, to promptly begin and thereafter engage con-
tinuously in the general practice of medicine in a rural community in
the State of Virginia, selected by the State Health Commissioner with the
approval of the State Board of Health, for a period of years equal in
number to the years that he has been or shall be a beneficiary of any
such scholarship or scholarships; provided, that one year’s internship
in any rural hospital in the State of Virginia, selected by the State
Health Commissioner with the approval of the State Board of Health,
shall be considered the equivalent of a year’s practice of medicine in a
rural community. The said contract shall provide that if such applicant
enters the military service upon completion of his service as an interne,
he shall begin practice in the rural community selected as provided
herein promptly upon the termination of such military service, and
shall further provide that in the event the applicant shall fail to comply
with the provisions thereof er any of them, he shall repay to the school
all amounts received by him as a beneficiary of such awards, such re-
payment to be upon such terms and conditions as may be determined
by the school. Such contract shall contain such other provisions as may
be necessary, in the opinion of the president or other proper officer of
the school, to accomplish the purposes of the scholarships.

Section 4. As further evidence of the promise of such recipient to
make such repayment, as to each scholarship awarded him in the event
he shall fail or refuse to fulfill the conditions and requirements herein
specified as to such scholarship, he shall, when such scholarship is
awarded, be required to execute and deliver to the school awarding the
scholarship a note in the principal sum of one thousand dollars, with
interest at four per centum, which note shall be accepted by the school
upon the condition that such note, and other similar notes so given, shall
be cancelled by the school upon the basis of one note for each year in
which he shall practice medicine in a rural community selected as here-
inbefore set forth; provided, however, that no recipient of any such
scholarship shall be permitted to plead the statute of limitations or inter-
pose a plea of infancy in the event of an action being brought against
him on any such note.

Section 5. Each recipient, when such scholarship is awarded, shall
be required to insure his life, for the benefit of the school awarding
the scholarship, in a sum equal at least to the value of each scholarship
awarded him, the insurance policy to contain a specific provision that
the school beneficiary shall not be changed without consent of said bene-
ficiary. Upon cancellation of each note executed by the recipient as here-
inbefore provided, the school beneficiary shall consent to such change
in the beneficiary of the corresponding insurance policy as may be desig-
nated by the recipient. Upon the failure of the recipient to discharge
his obligation either by service or payment, as herein required, or by
reason of his death or any other cause, the policy or policies and any and
all proceeds derived therefrom shall become the property of the school
beneficiary. All premiums on the insurance policy or policies shall be
paid by the recipient of the scholarship.

Section 6. All money repaid by any such recipient, and all proceeds
derived by such school beneficiary from any such insurance policy,
shall be placed in a special fund which shall be used for medical scholar-
ships in accordance with the provisions of this act.
Section 7. Each such scholarship shall be awarded for a single
year, but the same student shall, after making satisfactory progress to-
ward his degree in the discretion of the president or other proper officer
of the school, receive such award for any succeeding year or years,
provided no student shall receive any such scholarship for more than a
total of four years.

Section 8. The funds making up each such scholarship shall be paid
to the recipient thereof, or applied to the payment of his expenses at
such medical school, in such amounts and at such times during such
school year as may be determined by the president or other proper
officer of the school; provided, however, that no recipient shall receive
for any such scholarship less than one thousand dollars.

Section 9. The governing board of Virginia State College is hereby
authorized and empowered to establish five annual medical scholarships
each with the annual value of one thousand dollars to be awarded to
Virginia students attending Meharry Medical College, Nashville, Tenn-
essee, as provided by the Acts of the General Assembly, nineteen hundred
forty-four, chapter seventy-two, page ninety-two, such scholarships to
be awarded and paid subject to the conditions and restrictions set forth
in sections two to eight, inclusive, above.

2. To provide funds necessary to carry out the provisions of this
act there is hereby appropriated to the Medical College of Virginia and
to the University of Virginia the sum of ten thousand dollars ($10,000)
each and to Virginia State College the sum of five thousand dollars
($5,000), to be paid out of any funds in the State treasury not otherwise
appropriated, or so much thereof as may be necessary for the purpose, for
each year of the biennium beginning July first, nineteen hundred forty-
eight. All payments out of this appropriation shall be made by the
Treasurer of Virginia on warrants of the Comptroller issued on vouchers
signed by the president or other authorized officer or officers of the
respective schools.