220 CMR, 52.316
When bonds or other evidences of indebtedness are disposed of for a consideration whose cash value is greater than the sum of the par value of such securities or other evidences of indebtedness and the interest thereon accrued at the time the transfer takes place, the excess of the cash value of such consideration received over the sum of the par value of the securities or other evidences of indebtedness and the accrued interest should be credited to this account. At appropriate intervals thereafter a proportion of such premium, based upon the life of the security, may be charged to this account and credited to account No. 565, "Amortization of Premium on Bonds."
Utility companies have the option of deferring the extinguishment of such premiums until the maturity of the obligation represented.
220 CMR, 52.316