Qualified Investments Law and Legal Definition

According to 26 USCS § 501 (Title 26, Internal Revenue Code; Subtitle A, Income Taxes; Chapter 1, Normal Taxes and surtaxes; Subchapter F. Exempt Organizations; Part I, General Rule), “the term "qualified investments" means--

(I) public debt securities of the United States,

(II) obligations of a State or local government which are not in default as to principal or interest, and

(III) time or demand deposits in a bank (as defined in section 581 [26 USCS § 581]) or an insured credit union (within the meaning of section 101(7) of the Federal Credit Union Act, 12 U.S.C. 1752(7)) located in the United States.”