### Question
How does the law define qualified veterans’ mortgage bond?


### Answer
Under *26 U.S.C. § 143*, **qualified veterans’ mortgage bond** is defined as:

> any bond—


(1) which is issued as part of an issue 95 percent or more of the net proceeds of which are to be used to provide residences for veterans,


(2) the payment of the principal and interest on which is secured by the general obligation of a State,


(3) which is part of an issue which meets the requirements of subsections (c), (g), (i)(1), and (*l*), and


(4) which is part of an issue which does not meet the private business tests of paragraphs (1) and (2) of section 141(b)

#### Citation:
  - *26 U.S.C. § 143*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter B-Computation of Taxable Income > PART IV-TAX EXEMPTION REQUIRE- > Subpart A-Private Activity Bonds**

