Sub panel feed

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I could use some help on a dillema I'm facing.

I have an old Zinsco commercial distribution panel that uses QFP breakers. I need to install a small sub-panel (70 amps) approximately 100 ft away. The smallest QFB breaker is 125 amps.

Is it code compliant to install #3 THHN from the 125amp breaker to a 70amp breaker at the sub-panel?

One possible work around would be to install a 125amp sub-panel next to the main and then step-down to 70 amps, but this obviously increases the cost quite a bit.

Please site the applicable code(s)

Thanks for the help

I'm going to re-post this to the NEC section
 
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