### Question
What does direct loan obligation mean?


### Answer
**Direct loan obligation** has the following meaning in *2 U.S.C. § 661a*:

> 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**

