### Question
What does unserved obligation penalty mean?


### Answer
**Unserved obligation penalty** has the following meaning in *42 U.S.C. § 254o*:

> the amount equal to the product of the number of months of obligated service that were not completed by an individual, multiplied by $1,000, except that in any case in which the individual fails to serve 1 year, the unserved obligation penalty shall be equal to the full period of obligated service multiplied by $1,000

#### Citation:
  - *42 U.S.C. § 254o*
  - Heading: **CHAPTER 6-THE CHILDREN'S BUREAU > SUBCHAPTER II-GENERAL POWERS AND DUTIES > Part D-Primary Health Care > subpart iii-scholarship program and loan repayment program**

