### Question
How is the "qualified bond" defined?


### Answer
The term **qualified bond** is defined in *20 U.S.C. § 1066a* as follows -

> any obligation issued by the designated bonding authority at the direction of the Secretary, the net proceeds of which are loaned to an eligible institution for the purposes described in section 1066b(b) of this title

#### Citation:
  - *20 U.S.C. § 1066a*
  - Heading: **CHAPTER 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE > SUBCHAPTER III-INSTITUTIONAL AID > Part D-Historically Black College and University Capital Financing**

