qualified note
(3) “Qualified note” defined The term “qualified note” means any note that— (A) is at all times fully secured by the corporate debt security that does not meet standards of credit-worthiness established by the Corporation transferred in exchange for the note, or by other collateral of at least equivalent value that is acceptable to the Comptroller of the Currency or the Corporation, as appropriate; (B) contains provisions acceptable to the Comptroller of the Currency or the Corporation, as appropriate, that would— (i) prevent any action to encumber or impair the value of the collateral referred to in subparagraph (A); and (ii) allow the sale of the corporate debt security that does not meet standards of credit-worthiness established by the Corporation if the proceeds of the sale are reinvested in assets of equivalent value; (C) is on market terms, including interest rate, which must in all cases be above the insured savings association’s borrowing rate for similar term funds; (D) is fully repayable over a period of time not to exceed 5 years from the date of transfer; (E) is repaid with annual principal payments at least as large as would be necessary to repay the note within 5 years if it were on a level payment amortization schedule and the interest rate for the first year of repayment were fixed throughout the amortization period; (F) is fully guaranteed by each holding company of the insured savings association that acquires such note; and (G) is repaid in full in cash in accordance with its terms and this subsection.
Source
12 USC § 1831e(e)(3)
Scoping language
None identified, default scope is assumed to be the parent (chapter 16) of this section.