Qualified Loan Law and Legal Definition
According to 12 USCS § 2279aa (9), the term qualified loan means “an obligation--
(A) (i) that is secured by a fee-simple or leasehold mortgage with status as a first lien, on agricultural real estate located in the United States that is not subject to any legal or equitable claims deriving from a preceding fee-simple or leasehold mortgage;
(ii) of--
(I) a citizen or national of the United States or an alien lawfully admitted for permanent residence in the United States; or
(II) a private corporation or partnership whose members, stockholders, or partners holding a majority interest in the corporation or partnership are individuals described in subclause (I); and
(iii) of a person, corporation, or partnership that has training or farming experience that, under criteria established by the Corporation, is sufficient to ensure a reasonable likelihood that the loan will be repaid according to its terms;
(B) that is the portion of a loan guaranteed by the Secretary of Agriculture pursuant to the Consolidated Farm and Rural Development Act (7 U.S.C. 1921 et seq.), except that--
(i) subsections (b) through (d) of section 8.6, and sections 8.8 and 8.9 [12 USCS §§ 2279aa-6(b)-(f), 2279aa-8, 2279aa-9], shall not apply to the portion of a loan guaranteed by the Secretary or to an obligation, pool, or security representing an interest in or obligation backed by a pool of obligations relating to the portion of a loan guaranteed by the Secretary; and
(ii) the portion of a loan guaranteed by the Secretary shall be considered to meet all standards for qualified loans for all purposes under this Act [12 USCS §§ 2001 et seq.]; or
(C) that is a loan, or an interest in a loan, for an electric or telephone facility by a cooperative lender to a borrower that has received, or is eligible to receive, a loan under the Rural Electrification Act of 1936 (7 U.S.C. 901 et seq.).”
Legal Definition list
- Qualified Joint Venture [Internal Revenue]
- Qualified Joint and Survivor Annuity [Internal Revenue]
- Qualified Investments
- Qualified Intermediary
- Qualified Institutional Buyer [Securities]
- Qualified Loan
- Qualified Low-Income Community Investment [Tax]
- Qualified Mediator [Farm Service Agency]
- Qualified Medical Child Support Order QMCSO
- Qualified Medical Personnel
- Qualified Member [Federal Elections]
Related Legal Terms
- Acquisition and Improvement Loan [Veterans' Relief]
- Acquisition Loan [HUD]
- Acquisition, Development and Construction (ADC) Loan
- Adjustable Rate Mortgage Loan
- Administrative Cost of Issuing a Loan Guarantee
- Air Loan
- Allowance for Loan and Lease Losses
- Alternate Payee to Qualified Domestic Relations Order
- Amortized Loan
- Automatic Premium Loan Option
