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PUBLIC LAW 86-861-8EPT. 2, 1968

[72 S T A T.

32 USC 323.

(11) Section 323 is amended by adding the following new subsections at the end thereof: "(d) Except as provided in sections 1005 and 1006 of title 10, the Federal recognition of a second lieutenant of the Army National 10 USC 3820. Guard who is discharged under section 3820(c) of title 10 for failure of promotion shall be withdrawn on the date of that discharge. "(e) Except as provided in sections 1005 and 1006 of title 10, the Federal recognition of a reserve officer of the Air Force who is not recommended for promotion under section 8368(c)(1) or (2) of title 10, or who is found to be not qualified for Federal recognition under section 8368(d) or (e) of title 10, shall be withdrawn? 32 USC 701-713. (12) Chapter 7 is amended by adding the following new section at the end thereof: '*§ 714. Final settlement of accounts: deceased members "(a) In the settlement of the accounts of a member of the National Guard who dies after December 31, 1955, an amount due from the armed force of which he was a member shall be paid to the person highest on the following list living on the date of death: "(1) Beneficiary designated by him in writing to receive such an amount, if the designation is received, before the deceased member's death, at the place named in regulations to be prescribed by the Secretary concerned. "(2) Surviving spouse. " (3) Children and their descendants, by representation. "(4) Father and mother in equal parts or, if either is dead, the survivor. "(5) Legal representative. "(6) Person entitled under the law of the domicile of the deceased member. "(b) Designations and changes of designation of beneficiaries under subsection (a)(1) are subject to regulations to be prescribed by the Secretary concerned. So far as practicable, these regulations shall be uniform with those prescribed for the armed forces under section 2771(b) of title 10. "(c) Under such regulations as the Comptroller General may prescribe, payments under subsection (a) shall be made by the Department of the Army or the Department of the Air Force, as the case may be. Payments under clauses (2)-(6) of subsection (a) may be paid only after settlement by the General Accounting Office. "(d) A payment under this section bars recovery by any other person of the amount paid." (13) The analysis of chapter 7 is amended by adding the following new item at the end thereof: "714. Final settlement of accounts: deceased members."

PARTS OF TITLE 10 ADOPTED FOR COAST AND GEODETIC SURVEY 33 USC 857a.

SEC. 3. Section 3(a) of the Act of August 10, 1956, ch. 1041 (70A

Stat. 619), is amended— (1) by amending clause (2) to read as follows: " (2) Chapter 69, Retired Grade, except sections 1374, 1375, and 1376 (a)."; (2) by amending clause (5) to read as follows: "(5) Chapter 75, Death Benefits."; (3) by redesignating clause (6) as clause "(7)"; and (4) by inserting the following new clause after clause (5): "(6) Section 2771, Final settlement of accounts: deceased members."

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