California Code of Regulations
Title 12 - Military and Veterans Affairs
Division 2 - Department of Veterans Affairs
Chapter 2 - Veterans' Farm and Home Purchases
Subchapter 1 - Eligibility and Qualifications
Section 305.1 - Subsequent Loan Benefit; Enlisted Personnel

(a) An "overnight reenlistment" into military service qualifies as a separate period of service. For purposes of this section, an "overnight reenlistment" is defined as an event wherein a veteran is discharged on one day and reenlists in military service the following day with no intent of resuming civilian life.

(b) A veteran, as defined in Section 980 of the Military and Veterans Code, who served during more than one qualifying war period, as specified in Section 980 (World War II, Korea, Vietnam, Operation Desert Shield or Operation Desert Storm) shall be granted a subsequent opportunity to purchase a property under the Cal-Vet loan program if the qualifying war periods were served during different periods of enlistment, even if there was no distinct break between enlistments ("overnight reenlistment"). Only one Cal-Vet loan shall be granted for service during any one qualifying war period, and only one Cal-Vet loan shall be granted per period of enlistment.

(c) A veteran, as defined in Section 980 of the Military and Veterans Code, who served during a qualifying war period, as specified in Section 980 (World War II, Korea, Vietnam, Operation Desert Shield, or Operation Desert Storm) under one period of enlistment, and who, during a subsequent reenlistment served in a campaign or expedition, at any time, for service in which a medal has been authorized by the federal government, shall be granted a subsequent opportunity to purchase property under the Cal-Vet loan program even if there was no distinct break between enlistments ("overnight reenlistment"). Only one Cal-Vet loan shall be granted for service during any one qualifying war period, campaign, or expedition, and only one Cal-Vet loan shall be granted per period of enlistment.

(d) The first Cal-Vet loan must be sold, or the veteran's interest must have been divested through divorce or dissolution of marriage, and the contract paid in full before the veteran may obtain a subsequent loan and the veteran must be qualified under the federal restrictions on the uses of tax-exempt bonds at the time the subsequent loan is funded.

(e) If the veteran has dual eligibility (qualifies for veteran status under two qualifying war periods), then the previous Cal-Vet loan must have been paid in full, but the property need not be sold.