Source: http://uscode.house.gov/view.xhtml?req=10+U.S.C.+1209&f=treesort&fq=true&num=18&hl=true&edition=prelim&granuleId=USC-prelim-title10-section1209
Timestamp: 2019-04-20 06:20:54+00:00

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(5) the disability is less than 30 percent under the standard schedule of rating disabilities in use by the Department of Veterans Affairs at the time of the determination, and, in the case of a disability incurred before October 5, 1999, was the proximate result of performing active duty or inactive-duty training or of traveling directly to or from the place at which such duty is performed.
However, if the member is eligible for transfer to the inactive status list under section 1209 of this title, and so elects, he shall be transferred to that list instead of being separated.
1206 37:272(c) (last proviso). Oct. 12, 1949, ch. 681, §402(c) (last proviso), 63 Stat. 818 .
To state fully in the revised section the rule contained in 37:272(c) (last proviso), the provisions of 37:272(c) (less clause (5), and less 1st proviso), and 272(f) (as applicable to 272(c)), also contained in section 1204 of this title, are repeated. The words "the member may be separated" are substituted for the words "the member concerned shall not be eligible for any disability retirement provided in this section, but may be separated for physical disability".
Clause (1) is inserted for clarity, since a member who had over 20 years of service would qualify under section 1204 or 1205 of this title.
The last sentence of the revised section, relating to transfer to the inactive status list, is inserted for clarity because of section 1209 of this title.
2001-Par. (2)(B)(iii). Pub. L. 107–107, §513(b), struck out ", if the place is outside reasonable commuting distance from the member's residence" before semicolon at end.
Par. (5). Pub. L. 107–107, §1048(c)(6), substituted "October 5, 1999," for "the date of the enactment of the National Defense Authorization Act for Fiscal Year 2000,".
"(C) while remaining overnight immediately before the commencement of inactive-duty training, or while remaining overnight between successive periods of inactive-duty training, at or in the vicinity of the site of the inactive-duty training, if the site is outside reasonable commuting distance of the member's residence;".
Par. (5). Pub. L. 106–65, §653(c), inserted ", in the case of a disability incurred before the date of the enactment of the National Defense Authorization Act for Fiscal Year 2000," after "determination, and".
1997-Pub. L. 105–85, §513(d)(2), amended section catchline generally, inserting "or on inactive-duty training" after "30 days or less".
Pars. (2) to (5). Pub. L. 105–85, §513(c)(2), added par. (2) and redesignated former pars. (2) to (4) as (3) to (5), respectively.
1992-Par. (4). Pub. L. 102–484 inserted before period at end "or of traveling directly to or from the place at which such duty is performed".
1989-Par. (4). Pub. L. 101–189 substituted "Department of Veterans Affairs" for "Veterans' Administration".
1986-Pub. L. 99–661 struck out "; disability from injury" after "30 days or less" in section catchline and "resulting from an injury" after "because of physical disability" in provisions preceding par. (1).
Amendment by Pub. L. 102–484 effective with respect to disabilities incurred on or after Nov. 14, 1986, with any benefits or services payable by reason of applicability of that amendment during period beginning Nov. 14, 1986, and ending Oct. 23, 1992, subject to availability of appropriations, see section 516(b) of Pub. L. 102–484, set out as a note under section 1204 of this title.
Amendment by Pub. L. 99–661 applicable with respect to persons who, after Nov. 14, 1986, incur or aggravate an injury, illness, or disease or die, see section 604(g) of Pub. L. 99–661, set out as a note under section 1074a of this title.

References: §402
 §513
 §1048
 §653
 §513
 §513