(a) The State Comptroller shall invest amounts on deposit in sinking fund accounts only in investments permitted under section 22.10 of the Local Finance Law and under any agreement between the issuer and the State Comptroller. Such investments shall mature or be redeemable at the option of the State Comptroller on or before the date such moneys are to be applied to the redemption of sinking fund bonds. For purposes of determining the amount required to be contributed to a sinking fund account, the value of such investments shall be:

1. (1) the par value thereof, in the case of investments paying interest on a current basis (i.e., paying interest at least annually); and
2. (2) The accreted value thereof, in the case of investments not paying interest on a current basis (e.g., zero coupon bonds).