5588 - Amortization of premiums on securities held.
§ 5588. Amortization of premiums on securities held. If a bond or other obligation for the payment of money is acquired as an investment for any common trust fund at a cost in excess of the par or maturity value thereof, the nonprofit corporation may, during (but not beyond) the period that such obligation is held as an investment in such fund, amortize such excess cost out of the income on such obligation, by deducting from each payment of income and adding to principal an amount equal to the sum obtained by dividing such excess cost by the number of periodic payments of income to accrue on such obligation from the date of such acquisition until its maturity date.