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Lower grades of property will also be viewed as discountable.
The banks submit to the Central Bank discountable commercial paper (discount policy) or mortgage certificates of deposit (Lombard rate policy) in order to obtain short-term loans from the Central Bank.
Accordingly, ownership for the purpose of control may be aggregated upon the first death to achieve maximum basis step-up and then bifurcated at the time of the second death so that the CLAT may be funded with a discountable interest.