### Question
How does the law define high-cost debt?


### Answer
Under *12 U.S.C. § 2278a*, **high-cost debt** is defined as:

> securities or similar obligations issued before January 1, 1986, that mature on or after December 31, 1987, and bear a rate of interest in excess of the then current market rate for similar securities or obligations

#### Citation:
  - *12 U.S.C. § 2278a*
  - Heading: **CHAPTER 23-FARM CREDIT SYSTEM > SUBCHAPTER VI-ASSISTANCE TO FARM CREDIT SYSTEM > Part A-Assistance Board**

