---
kind: "section"
citation: "12 C.F.R. § 702.407"
title: "12"
number: "702.407"
heading: "Discounting of amount treated as Regulatory Capital."
url: "https://uscodex.org/cfr/12/702.407"
---

# §702.407. Discounting of amount treated as 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)](/cfr/12/702.404.md?p=a-6)), as required by the following schedule:


## Notes

### Source

Source: 86 FR 11074, Feb. 23, 2021, unless otherwise noted.

### Authority

Authority: 12 U.S.C. 1757(9), 1766(a), 1784(a), 1786(e), 1790d.

### Source

Source: 65 FR 8584, Feb. 18, 2000, unless otherwise noted.