PUBLIC LAW 107-314—DEC. 2, 2002 116 STAT. 2577 (b) EFFECTIVE DATE AND APPLICABILITY. —The amendment iousci6i33 made by subsection (a) shall take effect on October 1, 2002, and note, shall apply with respect to periods of entitlement to educational assistance under chapter 1606 of title 10, United States Code, that begin on or after October 1, 1992. SEC. 642. REPAYMENT REQUIREMENTS UNDER RESERVE COMPONENT MONTGOMERY GI BILL ARISING FROM FAILURE TO PARTICIPATE SATISFACTORILY IN MILITARY SERVICE TO BE CONSIDERED DEBTS OWED TO THE UNITED STATES. Section 16135 of title 10, United States Code, is amended by adding at the end the following new subsection: "(c)(1) Subject to subsection (a)(2), an obligation to pay a refund to the United States under subsection (a)(1)(B) in an amount determined under subsection (b) is, for all purposes, a debt owed to the United States. "(2) A discharge in bankruptcy under title 11 that is entered less than five years after the termination of an enlistment or other agreement under this section does not discharge the person signing such enlistment or other agreement from a debt arising under the enlistment or agreement, respectively, under this subsection.". SEC. 643. TECHNICAL ADJUSTMENTS TO AUTHORITY FOR CERTAIN MEMBERS TO TRANSFER EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL TO DEPENDENTS. (a) CLARIFICATION OF RATE OF EDUCATIONAL ASSISTANCE FOR DEPENDENTS TO WHOM ENTITLEMENT IS TRANSFERRED.— Section 3020(h) of title 38, United States Code, is amended— (1) in paragraph (2)— (A) by striking "paragraphs (4) and (5)" and inserting " paragraphs (5) and (6)"; and (B) by striking "and at the same rate"; (2) by redesignating paragraphs (3) through (6) as paragraphs (4) through (7), respectively; and (3) by inserting after paragraph (2) the following new paragraph (3): "(3)(A) Subject to subparagraph (B), the monthly rate of educational assistance payable to a dependent to whom entitlement is transferred under this section shall be the monthly amount payable under sections 3015 and 3022 of this title to the individual making the transfer. "(B) The monthly rate of assistance payable to a dependent under subparagraph (A) shall be subject to the provisions of section 3032 of this title, except that the provisions of subsection (a)(1) of that section shall not apply even if the individual making the transfer to the dependent under this section is on active duty during all or any part of enrollment period of the dependent in which such entitlement is used.". (b) SOURCE OF FUNDS FROM INCREASED USAGE.— Section 3035(b) of such title is amended— (1) in paragraph (1), by striking "paragraphs (2) and (3) of this subsection" and inserting "paragraphs (2), (3), and (4)"; and (2) by adding at the end the following new paragraph: "(4) Payments attributable to the increased usage of benefits as a result of transfers of entitlement to basic educational assistance under section 3020 of this title shall be made from the Department
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