ORIGINAL ISSUE PREMIUM – The amount by which the public offering price of a security at the time of its original issuance exceeded its par value. The original issue premium is amortized over the life of the security and results in an adjustment to the basis of the security. Original issue premium generally is not deductible for federal income tax purposes. The amount of original issue premium received by the issuer in a primary offering, also known as the “bond premium,” is generally treated as proceeds of the issue. Compare: ORIGINAL ISSUE DISCOUNT. See: AMORTIZATION OF PREMIUM.