(a) General rule.--An eligible member who fails to meet the six-year service obligation of this subchapter or to meet other requirements established by the Adjutant General or the agency is liable to the Commonwealth for repayment of all or part of any grant payments made. The Adjutant General shall notify the agency if an eligible member fails to complete the service obligation, and the promissory note under section 3204(b) (relating to grants) shall be repaid by the eligible member upon demand by the agency on a schedule as the agency may determine.

(b) Forgiveness of recoupment.--The Adjutant General shall notify the agency and the agency shall forgive recoupment of all or part of an eligible member's grant payments if the Adjutant General determines that the eligible member's failure to fulfill the six-year service obligation was the result of one of the following: