GroundRules
12 CFR 702.407: Discounting of amount treated as Regulatory Capital.
Where this section sits in the code
- Title 12—Banks and Banking
- CHAPTER VII—NATIONAL CREDIT UNION ADMINISTRATION
- SUBCHAPTER A—REGULATIONS AFFECTING CREDIT UNIONS
- PART 702—CAPITAL ADEQUACY
- Subpart D—Subordinated Debt, Grandfathered Secondary Capital, and Regulatory Capital
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 years 80
Three to less than four years 60
Two to less than three years 40
One to less than two years 20
Less than one year 0
Collected 2026-08-27T02:24:16Z. Source file · JSON