qualified employee trust
(2) For purposes of this chapter, the term “qualified employee trust” means, with respect to a small business concern, a trust— (A) which forms part of an employee stock ownership plan (as defined in section 4975(e)(7) of title 26 )— (i) which is maintained by such concern, and (ii) which provides that each participant is entitled to direct the plan trustee as to the manner of how to vote the qualified employer securities (as defined in section 4975(e)(8) of title 26 ), which are allocated to the account of such participant with respect to a corporate matter which (by law or charter) must be decided by a vote conducted in accordance with section 409(e) of the title 26; and (B) in the case of any loan guarantee under section 636(a) of this title , the trustee of which enters into an agreement with the Administrator which is binding on the trust and on such small business concern and which provides that— (i) the loan guaranteed under section 636(a) of this title shall be used solely for the purchase of qualifying employer securities of such concern, (ii) all funds acquired by the concern in such purchase shall be used by such concern solely for the purposes for which such loan was guaranteed, (iii) such concern will provide such funds as may be necessary for the timely repayment of such loan, and the property of such concern shall be available as security for repayment of such loan, and (iv) all qualifying employer securities acquired by such trust in such purchase shall be allocated to the accounts of participants in such plan who are entitled to share in such allocation, and each participant has a nonforfeitable right, not later than the date such loan is repaid, to all such qualifying employer securities which are so allocated to the participant’s account.