“Chap. 354.-An ACT to authorize the Medical College of Virginia and the Uni-
versity of Virginia severally to establish certain medical scholarships, to pre-
scribe the conditions and restrictions under which such scholarships may be
awarded and paid, to provide for repayment by the recipients of such scholar-
ships under certain conditions, to establish a special fund of any money so repaid,
and to appropriate funds necessary to carry out the provisions of this act.

[H B 40]
Approved April 1, 1942

1. Be it enacted by the General Assembly of Virginia, as follows:

The respective governing boards of the Medical College of Virginia
and of the University of Virginia are hereby authorized and empowered
‘o establish four annual medical scholarships each, which eight scholar-
ships hereby authorized shall be of the annual value of five hundred and
fifty dollars each, and shall be awarded and paid subject to the following
conditions and restrictions:

(1) 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 said 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.

(2) 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 said scholarship until his gradua-
tion, and, after graduating and completing a term of not exceeding two
years, as an interne at some hospital or institution approved by the said
school, to promptly begin and thereafter engage continuously in the gen-
eral 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 o1
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 com-
pletion of his service as an interne, he shall begin practice in the rura
community selected as provided herein promptly upon the terminatior
of such military service, and shall further provide that in the event the
applicant shall fail to comply with the provisions thereof or any of them,
he shall repay to the said school all amounts received by him as a bene-
ficiary of such awards, such repayment to be upon such terms and con-
ditions as may be determined by the said school. Such contract shall con-
tain such other provisions as may be necessary, in the opinion of the
president or other proper officer of the school, to accomplish the pur-
poses of the scholarships.

(3) 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 re-
quired to execute and deliver to the school awarding the scholarship a
note in the principal sum of five hundred and fifty dollars, with interest,
which note shall be accepted by the said school upon the condition that
such note, and any other similar notes so given, shall be cancelled by the
said school upon the basis of one note for each year in which he shall
practice medicine in a rural community selected as hereinbefore set forth;
provided, however, that no recipient of any such scholarship shall be per-
mitted to plead the statute of limitations or interpose a plea of infancy
in the event of an action being brought against him on any such note.

(4) 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, said 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 designated
by the said recipient. Upon the failure of the said recipient to discharge
his obligation either by service or payment, as herein required, or by
reason of his death or any other cause, the said policy or policies and
any and all proceeds derived therefrom shall become the property of the
said school beneficiary. All premiums on said insurance policy or policies
shall be paid by the recipient of the scholarship.

(5) All money repaid by any such recipient, and all proceeds de-
rived by such school beneficiary from any such insurance policy, shall be
placed in a special fund which shall be used for medical scholarships in ac-
cordance with the provisions of thisact. | , a
(6), Each such scholarship shall be awarded for a single year, but
the same student shall, after making satisfactory progress toward his
degree in the discretion of the president or other proper officer of the said
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. , | a

(7) 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
Hs. 354, 355] ACTS OF ASSEMBLY 933

aid school; provided, however, that no recipient shall receive for any
such scholarship less than five hundred and fifty dollars.

2. Be it further enacted, That, in order to provide funds necessary
‘0 carry out the provisions of this act, there is hereby appropriated to the
Medical College of Virginia and to the University of Virginia, out of any
‘unds in the State treasury not otherwise appropriated, the sum of twenty-
-wo hundred dollars each, or so much thereof as may be necessary for
said purpose, for each year of the biennium beginning July first, nine-
‘een hundred and forty-two. All payments out of this appropriation shall
be made by the Treasurer of Virginia on warrants of the Comptroller is-
sued on vouchers signed by the president or other authorized officer or
officers of the respective schools. |