Penalty claims will be imposed on officers/students sponsored under the Federal Scholarship / Federal Education Loan in the following circumstances:

1. Committed a breach of the conditions of the agreement (failure to report for duty upon graduation / refusal to serve in the public service sector / poor academic achievement / withdrawal / discipline problems and others) and any terms within the agreement.
2. Resigned before the end of the service contract bond.

A notice of claim shall be issued to the Officer/Student, and the claim must be settled in full within 60 DAYS / 25 DAYS after the date the Notice is issued.