New York Codes, Rules and Regulations › Title 9 - EXECUTIVE DEPARTMENT › Subtitle S - Division of Housing and Community Renewal › Chapter III - Low Rent Housing › Subchapter D - Accounting Manual For Public Housing Agencies › Part 1644 - Debt Service › Subpart 1644-3 - Debt Service Subsequent To Issuance Of Housing Bonds › Section 1644-3.9 - Periodic provision for amortization

Current through Register Vol. 46, No. 28, July 10, 2024
(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:
Entry (4):
Debit: Account 4717, Amortization of Indebtedness
						  $XXX
Credit: Account 2600, Accumulated Amortization
						  $XXX
Explanation:To record quarterly provision for
						  amortization on housing bond issue no. ________.