### Question
How does the law define loan guarantee?


### Answer
Under *42 U.S.C. § 16371*, **loan guarantee** is defined as:

> any guarantee or other pledge by the Secretary to pay all or part of the principal of, and interest on, a loan made to an obligor, or debt obligation issued by an obligor, in each case funded by a lender

#### Citation:
  - *42 U.S.C. § 16371*
  - Heading: **CHAPTER 149-NATIONAL ENERGY POLICY AND PROGRAMS > SUBCHAPTER IX-RESEARCH AND DEVELOPMENT > Part J-Carbon Dioxide Transportation Infrastructure Finance and Innovation**

