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


### Answer
The term **direct loan obligation** is defined in *45 U.S.C. § 821* as follows -

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

#### Citation:
  - *45 U.S.C. § 821*
  - Heading: **CHAPTER 17-RAILROAD REVITALIZATION AND REGULATORY REFORM > SUBCHAPTER II-RAILROAD REHABILITATION AND IMPROVEMENT FINANCING**

