below-market loan
Defined in 1 place of the United States Code.
The term “below-market loan” means any loan if—
(A) in the case of a demand loan, interest is payable on the loan at a rate less than the applicable Federal rate, or
(B) in the case of a term loan, the amount loaned exceeds the present value of all payments due under the loan.
Source
- 1994–present26 U.S.C. § 7872Internal Revenue Code · Treatment of loans with below-market interest rates · for purposes of this section