CA-2.1.3
Moderate step-ups in such instruments meeting the requirements set forth above, are permitted, in conjunction with a call option, only if the moderate step-up occurs at a minimum of ten years after the issue date and if it results in an increase over the initial rate that is no greater than either;
(a) 100 basis points, less the swap spread between the initial index basis and the stepped-up index basis; or
(b) 50% of the initial credit spread, less the swap spread between the initial index basis and the stepped-up index basis.
Apr 08