This is from instruction for form 1099-INT -->
"When is a payment made? Generally, interest is paid
when it is credited or set apart for a person without any
substantial limitation or restriction as to the time, manner,
or condition of payment. The interest must be made
available so that it may be drawn on at any time and its
receipt brought within the control and disposition of the
person.
For payments made on obligations subject to
transactional reporting (for example, savings bonds,
interest coupons, and other demand obligations), interest
is paid at the time the obligation is presented for payment.
For example, interest on a coupon detached from a bond
is paid when it is presented for payment."
therefore I hold my position that you recognize when a 1099-INT is issued and not on "Interest promised " but not paid.
