RS 9:2150 Bonds - Louisiana Statutes

§2150.  Bonds

A.  Bonds or other obligations for the payment of money are principal at their inventory value, except as provided in Sub-section B below.  No provision shall be made for amortization of bond premiums or for accumulation for discount.  The proceeds of sale, redemption, or other disposition of the bonds or obligations are principal.  

B.  The increment in value of a bond or other obligation for the payment of money payable at a future time in accordance with a fixed schedule of appreciation in excess of the price at which it was issued is income.  The increment in value is distributable at the time provided in R.S. 9:1841 through 9:1847, R.S. 9:1891 through 9:1906, and R.S. 9:1961 through 9:1965, from the first principal cash available to the beneficiary who was the income beneficiary at the time of increment.  If unrealized increment is distributed as income but out of principal, the principal shall be reimbursed for the increment when realized.