### Question
How does the law define tax-exempt obligation?


### Answer
Under *26 U.S.C. § 1288*, **tax-exempt obligation** is defined as:

> given to such term by section 1275(a)(3).

#### Citation:
  - *26 U.S.C. § 1288*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART V-SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS > Subpart D-Miscellaneous Provisions**

