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Code · CFR · Title 12 — Banks and Banking · Part 702 — Capital Adequacy · § 702.407

§ 702.407. Discounting of amount treated as Regulatory Capital.

92 words·~1 min read·/us/cfr/t12/s§ 702.407·

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The amount of outstanding Subordinated Debt that may be treated as Regulatory Capital shall reduce by 20 percent per annum of the initial aggregate principal amount of the applicable Subordinated Debt (as reduced by prepayments or amounts extinguished to cover a deficit under § 702.404(a)(6)), as required by the following schedule: Table 1 to § 720.407 Remaining maturity Balance treated as regulatory capital % Four to less than five years80 Three to less than four years60 Two to less than three years40 One to less than two years20 Less than one year0
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