{"data":{"id":"us/12-cfr-702.407","jurisdiction":"us","citation":"12 CFR 702.407","heading":"Discounting of amount treated as Regulatory Capital.","body":"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:\nTable 1 to § 720.407\nRemaining maturity Balance treated as regulatory capital %\nFour to less than five years 80\nThree to less than four years 60\nTwo to less than three years 40\nOne to less than two years 20\nLess than one year 0","path":["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"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-12.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:16Z","sha256":"6c97e7b10c29e731271aa07fd0059a20766af9306dd1882160b93c21c39b11b1","source_id":"us-cfr","stale":true,"prev":"us/12-cfr-702.406","next":"us/12-cfr-702.408"},"notice":"GroundRules: Original legal text. Not legal advice."}