### Question
What does short-term nongovernment obligation mean?


### Answer
**Short-term nongovernment obligation** has the following meaning in *26 U.S.C. § 1271*:

> any obligation which—


(i) has a fixed maturity date not more than 1 year from the date of the issue, and


(ii) is not a short-term Government obligation (as defined in paragraph (3)(B) without regard to the last sentence thereof)

#### Citation:
  - *26 U.S.C. § 1271*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART V-SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS > Subpart A-Original Issue Discount**

