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


### Answer
The term **qualified bond** is defined in *20 U.S.C. § 1132c* 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 1132c–2(b) of this title

#### Citation:
  - *20 U.S.C. § 1132c*
  - Heading: **CHAPTER 27-NATIONAL VOCATIONAL STUDENT LOAN INSURANCE > SUBCHAPTER VII-CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES > Part B-Historically Black College and University Capital Financing**

