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program the member elects to receive educational assist-
ance. 
‘‘(2) The restriction on duplication of educational as-
sistance under paragraph (1) does not apply to the entitle-
ment of educational assistance under section 3301(i) of 
this title. 
‘‘§ 3324. Time limit for use of entitlement 
‘‘(a) DURATION OF ENTITLEMENT.—Except as pro-
vided in subsection (b), a member remains entitled to edu-
cational assistance under this subchapter while serving— 
‘‘(1) in the Selected Reserve of the Ready Re-
serve, in the case of a member called or ordered to 
active service while serving in the Selected Reserve; 
or 
‘‘(2) in the Ready Reserve, in the case of a 
member ordered to active duty while serving in the 
Ready Reserve (other than the Selected Reserve). 
‘‘(b) DURATION OF ENTITLEMENT FOR DISABLED 
MEMBERS.—(1) In the case of a person who is separated 
from the Ready Reserve because of a disability which was 
not the result of the individual’s own willful misconduct 
incurred on or after the date on which such person became 
entitled to educational assistance under this subchapter, 
such person’s entitlement to educational assistance expires
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at the end of the 10-year period beginning on the date 
on which such person became entitled to such assistance. 
‘‘(2) The provisions of subsections (d) and (f) of sec-
tion 3031 of this title shall apply to the period of entitle-
ment prescribed by paragraph (1). 
‘‘§ 3325. Termination of assistance 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), educational assistance may not be provided under this 
subchapter, or if being provided under this subchapter, 
shall be terminated— 
‘‘(1) if the member is receiving financial assist-
ance under section 2107 of title 10 as a member of 
the Senior Reserve Officers’ Training Corps pro-
gram; or 
‘‘(2) when the member separates from the 
Ready Reserve, as provided for under section 
3324(a)(1) or section 3324(a)(2), as applicable, of 
this title. 
‘‘(b) EXCEPTION.—Under regulations prescribed by 
the Secretary of Defense, educational assistance may be 
provided under this subchapter to a member of the Se-
lected Reserve of the Ready Reserve who incurs a break 
in service in the Selected Reserve of not more than 90 
days if the member continues to serve in the Ready Re-
serve during and after such break in service.
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‘‘§ 3326. Administration of program 
‘‘(a) PAYMENTS.—Payments for educational assist-
ance under this subchapter shall be made from funds ap-
propriated or otherwise made available to the Department 
of Veterans Affairs for fiscal year 2009 or any subsequent 
fiscal year for the payment of readjustment benefits. 
‘‘(b) PROGRAM MANAGEMENT.—Except as otherwise 
provided in this subchapter, the provisions of sections 
3470, 3471, 3474, 3476, 3482(g), 3483, and 3485 of this 
title and the provisions of subchapters I and II of chapter 
36 of this title (with the exception of sections 3686(a) and 
3687) shall be applicable to the provision of educational 
assistance under this subchapter. The term ‘eligible vet-
eran’ and the term ‘person’, as used in those provisions, 
shall be deemed for the purpose of the application of those 
provisions to this subchapter to refer to a person eligible 
for educational assistance under this subchapter. 
‘‘(c) APPLICATION OF BENEFITS.—The Secretary of 
Veterans Affairs may not make a distinction in the appli-
cation of educational assistance benefits under this sub-
chapter on the basis of whether a person who is eligible 
for educational assistance under this subchapter first be-
came so eligible under former chapter 1607 of title 10, 
as in effect immediately on September 30, 2008.’’. 
(b) TRANSFER
OF AMOUNTS
FOR BENEFITS AC-
CRUED BEFORE OCTOBER 1, 2008.—
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(1) FISCAL YEAR 2009.—By not later than Oc-
tober 1, 2008, the Secretary of Defense shall trans-
fer to the Secretary of Veterans Affairs from the 
funds in the Department of Defense Education Ben-
efits Fund under section 2006 of title 10, United 
States Code, that are attributable to armed forces 
education liabilities under chapters 1606 and 1607 
of such title (other than such liabilities under section 
16131(i) of such title) that accrue before such date, 
such funds as may be required by the Secretary of 
Veterans Affairs to make payments with respect to 
such liabilities during fiscal year 2009. Such 
amounts shall be deposited into the Readjustment 
Benefits Account of the Department of Veterans Af-
fairs and shall be used only by the Secretary of Vet-
erans Affairs to make payments of educational as-
sistance under chapter 33 of title 38, United States 
Code, as added by subsection (a). Funds deposited 
in the Readjustment Benefits Account under this 
paragraph may not be used to pay any benefit that 
is payable from the Readjustment Benefits Account 
other than a payment of educational assistance 
under chapter 33 of title 38, United States Code, as 
added by subsection (a).
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(2) TREATMENT OF RECEIPTS.—Receipts that 
would otherwise be credited to the account estab-
lished for the payment of benefits under the Depart-
ment of Defense Education Benefits Fund under 
section 2006 of title 10, United States Code, for the 
payment of benefits under the chapters 1606 and 
1607 of such title (other than such benefits under 
section 16131(i) of such title), shall be credited to 
the Readjustment Benefits Account of the Depart-
ment of Veterans Affairs and merged with funds de-
posited in that account under paragraph (1), to be 
available for the same purposes and subject to the 
same limitations as such funds. 
(3) AGREEMENT
FOR
SUBSEQUENT
FISCAL 
YEARS.—By not later than October 1, 2008, the 
Secretary of Defense and the Secretary of Veterans 
Affairs shall enter into an agreement under which 
the Secretary of Defense shall transfer to the Sec-
retary of Veterans Affairs all remaining funds in the 
Department of Defense Education Benefits Fund 
under section 2006 of title 10, United States Code, 
that are attributable to armed forces liabilities under 
the former chapters 1606 and 1607 of such title 
(other than such liabilities under section 16131(i) of 
such title) that accrue before such date. Such