(a)
(1) All payments for osteopathic rural practice loans and community match loans under this subchapter shall be made on requisitions signed by the Chair of the Osteopathic Rural Medical Practice Student Loan and Scholarship Board drawn against the funds held for the purpose of this subchapter.
(2) These funds, consisting of state appropriations so designated, revolving amounts received from repayment of loans and interest, and all funds and property and income received by the board under its authority to accept and apply gifts, bequests, and devises shall be held in trust and disbursed by the fiscal officers of a medical school in Arkansas that is not the University of Arkansas for Medical Sciences for the aforesaid purposes.
(b) Funds collected as a result of a recipient's breach of an osteopathic rural practice loan contract or community match loan contract shall be:
(1) Held in trust for the use of the Osteopathic Rural Medical Practice Student Loan and Scholarship Program and the Community Match Rural Physician Recruitment Program, or as otherwise deemed appropriate by the board in its discretion; and
(2) Disbursed by the fiscal officer of an osteopathic medical school in Arkansas under this subchapter.