WASHINGTON — The Treasury Department released the terms and conditions of its revamped Capital Assistance Program, which has invested some $200 billion into 400 banks.

Future investments will take the form of preferred securities that can be converted into common equity. Treasury will pay 10% below a bank stock's Feb. 9 closing price. Banks applying for these funds will have to explain how they intend to use the capital "to preserve and strengthen their lending capacity — specifically, to increase lending above levels relative to what would have been possible without government support."

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