### Question
How is the term direct loan obligation defined?


### Answer
The term **direct loan obligation** is defined in *2 U.S.C. § 661a* as the following:

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

#### Citation:
  - *2 U.S.C. § 661a*
  - Heading: **CHAPTER 17A-CONGRESSIONAL BUDGET AND FISCAL OPERATIONS > SUBCHAPTER III-CREDIT REFORM**

