### Question
What is the definition of qualified bond?


### Answer
The definition of **qualified bond** is as follows in *20 U.S.C. § 1132c*:

> 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 28-HIGHER EDUCATION RESOURCES AND STUDENT ASSISTANCE > SUBCHAPTER VII-CONSTRUCTION, RECONSTRUCTION, AND RENOVATION OF ACADEMIC FACILITIES > Part B-Historically Black College and University Capital Financing**

