(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: