Sec. 9. An enlisted person who is discharged from service in the Indiana National Guard shall receive a discharge in writing in the form and with the classification prescribed by national guard regulations. In time of peace, a discharge may be given before the expiration of an enlistment term in the following cases:
(1) By sentence of a general court-martial.
(2) By direction of the governor on account of disability.
(3) On account of sentence of imprisonment by a civil court, whether suspended or not.
(4) On account of a bona fide permanent change of residence to another state.
(5) For the purpose of enlisting in the:
(A) United States Army;
(B) United States Air Force;
(C) United States Navy;
(D) United States Marine Corps; or
(E) United States Space Force.
(6) For other causes prescribed by national guard regulations or the commander in chief.
However, an enlisted person who has not returned or accounted for all of the public property for which the enlisted person is responsible may not receive an honorable discharge.