(760 ILCS 15/8) (from Ch. 30, par. 508)
Sec. 8.
Premium and discount.
(a) A bond or other obligation for the payment of money is principal at
its inventory value. No provision shall be made for amortization of
premiums or for accumulation for discounts. Except as provided in
subsection (b), the proceeds of sale, redemption or other disposition of
the bond or other obligation are principal.
(b) The increment over inventory value of a bond or other obligation for
the payment of money that makes no express provision for the payment of
interest and (i) that is scheduled to mature not more than one year after
its purchase or its otherwise becoming subject to the trust or (ii) that
is an issue of the United States and the appreciation in value of which
pursuant to a determinable schedule or formula is not required to be
included in gross income for federal income tax purposes prior to
realization thereof, shall be allocated to income at the time the increment
is realized.
(Source: P.A. 82-390; 87-714.)
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