(a) Payments of amortization on housing bonds are made in equal annual installments, the first payment being, ordinarily, made two years from the date of issue, and the last payment 50 years from the date of issue. The indicated amount of each installment of amortization is, therefore, one forty-ninth of the principal amount of the bond issue. The Comptroller, however, reserves some discretion over the date the first equal annual payment of amortization is payable, as article XVIII of the State Constitution (the housing amendment) merely states that the first such payment shall be payable not more than three years from the date of issue of the bonds. In making provision for the amortization, the local agency will be guided by a schedule of amortization payments, provided by the division, subsequent to the issuance of bonds, in which the amount of each installment to be made over the life of the bonds will be listed.

(b) The provision for amortization will ordinarily be made at the end of each quarter beginning with the date of substantial completion or the date of issue of the bonds, whichever is later. No provision for amortization shall be made prior to the date of substantial completion, even though bonds may have been issued prior to that date. Quarterly provision for the first installment of amortization shall be made by distributing the amount of the installment evenly over the period between the date of substantial completion, or the date of issue of the bonds, whichever is later, and the date the amortization is due to be paid to the bondholders. Thus, if bonds were issued December 1, 1948 and the project was declared substantially completed on January 1, 1949, the quarterly provision would commence with January, 1949, in an amount equal to three twenty- thirds of the first amortization payment which would, normally, be due on December 1, 1950. If the date of substantial completion was July 1, 1949, the quarterly provision would commence with July, 1949, at the rate of three seventeenths of the first amortizations payment, and so on. Thereafter, the quarterly provision for amortization will be three twelfths of the annual amortization payment next to be made, etc. The provision for a fractional part of a month is computed on the basis of a 30-day month, exactly as is the provision for interest on the bonds (see § 1644-3.3, supra). The entry for the quarterly provision for amortization is made at the end of each quarter, by journal voucher, as follows:

To record quarterly provision for amortization on housing bond issue no. ____.