### Question
How does the law define direct loan obligation?


### Answer
Under *45 U.S.C. § 821*, **direct loan obligation** is defined as:

> a binding agreement by the Secretary to make a direct loan when specified conditions are fulfilled by the borrower

#### Citation:
  - *45 U.S.C. § 821*
  - Heading: **CHAPTER 17-RAILROAD REVITALIZATION AND REGULATORY REFORM > SUBCHAPTER II-RAILROAD REHABILITATION AND IMPROVEMENT FINANCING**

