Original Issue Premium definition
Original Issue Premium means the amount of proceeds, in excess of the Principal, from a new Issue of Debt that result from the original Debt structured with periodic interest paid or accruing at a higher annual rate than the total annual rate of return to the Creditor.
Original Issue Premium means an amount paid by bondholders for bonds that exceeds the face amount of the bonds. Where this occurs, the federal tax laws prescribe special rules on how such premium must be treated for federal tax purposes.
Examples of Original Issue Premium in a sentence
The purchase price of the Bonds shall be $_______ (which is the principal amount thereof $_______, plus Net Original Issue Premium of $_______ and less Underwriter’s discount of $_______).
The total proceeds to be received by the City from the sale of the Bonds will be as follows: Principal Amount $[Principal Amount].00 Original Issue Premium [ .
The purchase price of the Reassessment Bonds shall be $_______ (which is the principal amount thereof $_______, plus Original Issue Premium of $ ).