N.Y. Comp. Codes R. & Regs. tit. 9, § 1644-2.5 – Premium on temporary loan notes.

(a) Premiums received from purchasers of temporary loan notes issued by the local agency in amounts of less than $100 will be credited directly to the appropriate interest cost or expense account, the date of issue of the temporary loan notes being the determining factor as to whether the credit will be to development or operations. Thus, if the date of issue of the temporary loan notes is prior to the date of substantial completion, the premium thereon, if under $100, is credited, through the cash receipts register, directly to account 1420.1, Interest. Similarly, if the date of issue of the temporary loan notes is subsequent to the date of substantial completion, the premium thereon, if under $100, is credited, through the cash receipts register, directly to account 4716, Interest on Indebtedness.
(b) Where the premium received is in the amount of $100 or more, the premium should be set up as a deferred credit and amortized pro rata over the life of the temporary loan note to the appropriate interest cost or expense account. The write-offs should be made by journal voucher at the end of each calendar quarter. The entries should be recorded, as follows:
1. (1) Premium deposited in project's bank account. The accounting entries are as follows: Note: Note:
  Entry (1): Through cash receipts register at time cash is received:
Dr. Account 1111—Development Fund
or
Dr. Account 1112—Administration Fund
Cr. Account 2230—Premium on Temporary Loan Notes
Note:
Entry (1) records the receipt of the premium in cash.
Entry (2): Through journal voucher for the quarterly pro rata write-off:
Dr. Account 2230—Premium on Temporary Loan Notes
Cr. Account 1420.1—Interest
or
Cr. Account 4716—Interest on Indebtedness
1. (2) Premium retained by the escrow agent. The accounting entries are as follows:
  Entry (1): Through the journal voucher at the time the funds are re-
  ceived by the escrow agent, who retains the premium and invests the
  funds so that they are available to pay interest at the date of maturity
  of the temporary loan notes:
Note:
Entry (2) credits the appropriate interest cost or expense account with a pro rata portion of the premium applicable to the period.
Dr. Account 1115—Special Deposits
Cr. Account 2230—Premium on Temporary Loan Notes
Entry (2): Through journal voucher for the quarterly pro rata write-off:
Dr. Account 2230—Premium on Temporary Loan Notes
Cr. Account 1420.1—Interest
or
Cr. Account 4716—Interest on Indebtedness
1. (3) Where the premium on temporary loan notes is in the amount of $100 or more, the allocation of the write-off credits, and the cutoff dates, to the project proper and the related programs shall follow the same rules applicable to the interest charge. The effect will be that the appropriate interest cost or expense accounts will reflect the net interest charge for the period, after credit for the premium.