Colorado Code
Part 4 - Uniform Principal and Income Act
§ 15-1-459. Premium and Discount Bonds

Where any part of the principal consists of bonds or other obligations for the payment of money, they shall be deemed principal at their inventory value, which in the case of a testamentary trust, unless a contrary intention appears from the will, shall be the value at the date of death, or in default thereof at their market value at the time the principal was established, or at their cost where purchased later, regardless of their par or maturity value, and, upon their respective maturities or upon their sale, any loss or gain realized thereon shall fall upon or inure to the principal. If, however, any of such bonds or obligations bears no stated interest but is redeemable at maturity or at a future time at an amount in excess of the amount in consideration of which it was issued, such accretion, as and when realized or realizable, shall be income.
Source: L. 2009: Entire section added, (HB 09-1241), ch. 169, p. 753, § 14, effective April 22.

Structure Colorado Code