20 U.S.C. § 1066a — Definitions

(1) “Eligible institution” means a “part B institution” as defined in section 1061(2). This section does not define “part B institution.” (2) “Loan” means a loan made to an eligible institution under this part and under an agreement with the Secretary^*. (3) “Qualified bond” means an obligation issued by the designated bonding authority at the Secretary’s direction, whose net proceeds are loaned to an eligible institution for section 1066b(b) purposes. (4) “Funding” means a payment under this part from the Secretary to an eligible institution or its assignee to fulfill the Secretary’s insurance obligations under an agreement under section 1066b.

(5) Subject to section 1066c(b), “capital project” means repairing, renovating, or, in exceptional circumstances, constructing or acquiring: (A) classrooms, libraries, laboratories, dormitories including dining facilities, and other customary college or university facilities for instruction, research, or housing students, faculty, and staff; (B) an educational-program administration facility, student center, or student union, but no more than 5 percent of loan proceeds may be used for one owned, leased, managed, or operated by a private business that pays the institution in return for use; (C) instructional equipment, technology, research instruments, and capital equipment or fixtures related to (A); (D) maintenance, storage, or utility facilities essential to operating a facility, library, dormitory, equipment, instrument, fixture, real property, or interest in property described here; (E) a facility primarily for outpatient student or faculty health care; (F) essential roads, sewer and drainage systems, water, power, lighting, telecommunications, and other utilities; (G) another facility, equipment item, or fixture essential to maintaining the institution’s accreditation by an agency or association recognized by the Secretary under the cited subpart; and (H) real property or an interest in it underlying facilities described in (A) or (G).

(6) “Interest” includes accredited value or another payment that constitutes interest on an obligation. (7) For bonds, “outstanding” does not include bonds whose payment is provided for by an irrevocable trust deposit of obligations maturing in principal and interest amounts and at times that ensure enough money to pay the bonds. (8) “Designated bonding authority” means the private, for-profit corporation the Secretary selects under section 1066d(1) to issue taxable capital-project construction bonds for this part. (9) “Advisory Board” means the Board established by section 1066f.