(a) Capital and surplus means:
(1) A bank's tier 1 and tier 2 capital calculated under the OCC's risk-based capital standards set forth in 12 CFR part 3, as applicable, as reported in the bank's Consolidated Reports of Condition and Income (Call Report) as filed under 12 U.S.C. 161; plus
(2) The balance of a bank's allowance for loan and lease losses not included in the bank's tier 2 capital, for purposes of the calculation of risk-based capital described in paragraph (a)(1) of this section, as reported in the bank's Call Report.
(b) Debts previously contracted (DPC) real estate means real estate (including capitalized and operating leases) acquired by a national bank through any means in full or partial satisfaction of a debt previously contracted.
(c) Former banking premises means real estate (including capitalized and operating leases) for which banking use no longer is contemplated. This includes real estate originally acquired for future expansion that no longer will be used for expansion or other banking purposes.
(d) Market value means the value determined in accordance with subpart C of this part.
(e) Other real estate owned (OREO) means:
(1) DPC real estate; and
(2) Former banking premises.
(f) Recorded investment amount means:
(1) For loans, the recorded loan balance, as determined by generally accepted accounting principles; and
(2) For former banking premises, the net book value.