N.J. Admin. Code § 3:34-1.11

Current through Register Vol. 56, No. 19, October 7, 2024

Section 3:34-1.11 - Agreement between custodial depositories and Commissioner

(a) A public depository shall not deposit collateral in a custodial depository that is a parent or subsidiary of the public depository, or is otherwise related to the public depository.

(b) A custodial depository shall be required to have a written agreement with the Commissioner authorizing such depository to hold securities as collateral for public funds under the terms and conditions enumerated therein.

(c) Should a public depository fail to meet its minimum regulatory capital requirements as established by the appropriate supervising Federal agency, or meet the criteria set forth in 17:16J-2(a), or for reasons grounded in other safety and soundness concerns, the Commissioner may:

1. Limit the authority of the public depository by prohibiting the public depository from accepting public deposits not insured by a Federal agency; and/or

2. Require that the public depository pledge only readily marketable investment grade securities, and pledge such securities to the extent of 120 percent of the amount of public funds on deposit not insured by the appropriate Federal insurance fund.

N.J. Admin. Code § 3:34-1.11